Read the case-money and prices during four hyperinflations

Assignment Help Macroeconomics

Reference no: EM133202617 , Length: Words Count:1200

Assignment:

Reference Source:

Textbook: - "Mankiw, N. Gregory. Principles of Macroeconomics, 6th ed. Mason, OH: South-Western Cengage Learning, 2011.

Case Study: 1

Please read the case "Money and Prices during Four Hyperinflations" from Chapter "Money Growth and Inflation" Page: - 652-Chapter given in your textbook - "Principles of Macroeconomics". The case study presented in the chapter discussed the government can pay for some of its spending simply by printing money. When countries rely heavily on this "inflation tax," the result is hyperinflation. and Answer the following Questions:

Questions:

1. Suppose a country's inflation rate increases sharply. What happens to the inflation tax on the holders of the money? Why is wealth that is held in savings accounts not subject to a change in the inflation tax? Can you think of any way holders of savings accounts are hurt by the increase in the inflation rate?

2. It is sometimes suggested that the Federal Reserve should try to achieve zero inflation. If we assume that velocity is constant, does this zero-inflation goal require that the rate of money growth equal zero? If yes, explain why? If no, explain what the rate of money growth should equal?

Important Note: - Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.

Case Study: 2

Please read the case "Oil and the Economy" from Chapter "Aggregate Demand and Aggregate Supply" Page: - 750 - Chapter given in your textbook - "Principles of Macroeconomics". A case study discusses the model of aggregate demand and aggregate supply explains the economic fluctuations.

Questions:

1. Explain the short-run and long-run impacts of oil price increase on output and price level in the U.S. during 1973-1975 periods using the model of aggregate demand and aggregate supply.

2. Explain the short-run and long-run impacts of oil price fall on output and price level in the U.S. in 1986, using the model of aggregate demand and aggregate supply

Important Note: - Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.

• All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Reference no: EM133202617

Questions Cloud

Broader understanding of american history : West Los Angeles College-Identifying the important themes as they pertain to our broader understanding of American history.

Transformation of american society : Grand Canyon University-Write a essay on the transformation of American society after WWII. Discuss important topics like suburbanization,

English reformation grew throughout sixteenth century : How the English Reformation grew throughout the sixteenth century from its beginnings with Henry VIII to England becoming a Protestant country

International organizations nato paper : HIS 204-Zayed University-When was the IO founded? Who are the members of the said IO? What are some of its achievements or accomplishments?

Read the case-money and prices during four hyperinflations : Please read the case "Money and Prices during Four Hyperinflations" from Chapter "Money Growth and Inflation". Saudi electronic university.

Analyze the responsibility of United States : HIST 405-Keiser Career College-Greenacres- Analyze the responsibility of United States today to be world's "policeman" Analyze responsibility of United States.

Evaluate the marginal cost of producing the pipeline : Recently, they have considered building a pipeline that stretches across the United States, from Canada to New Orleans. Rasmussen College.

Role of religion and spirituality in novel : University of Central Florida Orlando- What is the role of religion and spirituality in the novel? How do the actions of "Big Men" among the Fante/Asante impac

Means of travel employed by william of rubruck-marco polo : AAAS 341-SUNY at Binghamton-Compare the means of travel employed by William of Rubruck, Marco Polo, and Raban Sauma

User Account

All Pages