Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
xxemoxx:
I need help regarding this questi0n
25) What is most likely to conflict with a government's aim of price stability?
A higher direct tax rates
B higher government spending
C higher interest rates
D higher unemployment
it came in may/june 2005
thx
hmh:
--- Quote from: xxemoxx on June 09, 2009, 04:50:11 pm ---I need help regarding this questi0n
25) What is most likely to conflict with a government's aim of price stability?
A higher direct tax rates
B higher government spending
C higher interest rates
D higher unemployment
it came in may/june 2005
thx
--- End quote ---
The ans shood be B.. because if government spends more.. it will put more cash into economic cycle..which will give people more purchasing power as they wil have more incomes as a result of gov. expenditure .. this creats increase in aggregate demand which cant meet the supply.. so inflation increase as a result of demand pull.
xxemoxx:
--- Quote from: hmh on June 09, 2009, 04:56:17 pm ---
--- Quote from: xxemoxx on June 09, 2009, 04:50:11 pm ---I need help regarding this questi0n
25) What is most likely to conflict with a government's aim of price stability?
A higher direct tax rates
B higher government spending
C higher interest rates
D higher unemployment
it came in may/june 2005
thx
--- End quote ---
The ans shood be B.. because if government spends more.. it will put more cash into economic cycle..which will give people more purchasing power as they wil have more incomes as a result of gov. expenditure .. this creats increase in aggregate demand which cant meet the supply.. so inflation increase as a result of demand pull.
--- End quote ---
Thankyou, I understood it.
cheers
hmh:
Ur welcome :)
aquarian93:
my question is may 06 p1.
question 9.
anyone ?
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version