Wholesale price index and industrial production, International Economics

Assignment Help:

Q. The following table introduces the relationship between wholesale price index and industrial production changes between the years 1929 - 1935. What is the purpose of the given figure? Please note that the numbers could be starting from the origin with 50 and 50 and increase by ten units, each time. The numbers 10, 11, 12 etc. could read 100, 110, 120 etc. The numbers on the Y-axis best be ignored and just note that every dash shows a ten beginning from 50.

Answer: The reason is to illustrate those countries that left the gold standard early and adopted counter-deflationary monetary policies such as Australia and the United Kingdom experienced milder declines in output during the Great Depression. Countries such like France and Switzerland that stuck to the gold standard longer had greater decline in price level and output.

278_Wholesale price index and industrial production.png


Related Discussions:- Wholesale price index and industrial production

Show the effects of permanent increase in u.s. money supply, By Using the f...

By Using the figures for both the short run and the long run graphs, Demostrate the effects of a permanent increase in the U.S. money supply Economy.  Try to line up your figures t

Opportunity cost, Using examples, from the government, illustrate the signi...

Using examples, from the government, illustrate the significant opportunity cost.

Explain the advantages of free trade, 1. International trade: (a) Explai...

1. International trade: (a) Explain the concept of comparative advantage between two countries (use a numerical example to illustrate, and do not use the identical example in th

What do you think about dollarization, Q. What do you think about dol...

Q. What do you think about dollarization? Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage a

Manage the translation risk of your multinational enterprise, Question : ...

Question : (a) Differentiate between Transaction, economic risk and Translation risk in foreign exchange market. (use an illustrative and numerical example in each case. (b)

International trade for ideological reasons, Q. Albania refused to engage ...

Q. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it could choose to produce at which point in the diagram above? Sup

The wage rate, Q. Suppose the relative price of good 1 falls relative to th...

Q. Suppose the relative price of good 1 falls relative to the price of.  What happens to the wage rate? Answer: The labour component of the price of 1 is bigger than that of p

Extensive import-substitution industrialization, Q. The United States, as ...

Q. The United States, as it began its long and unbeaten growth in the early 19th Century, consciously promoted domestic production through such activities as tariffs, Clay's Ameri

Effect on gdp, The recessionary gap in a country is $1 trillion. The spendi...

The recessionary gap in a country is $1 trillion. The spending multiplier is 5. For every $50 billion borrowed, interest rates increase by 0.1 %. For every 0.1% increase in interes

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd