Why are some economists against a target of zero inflation?

 Macroeconomics Questions

100 words per question

1. What causes the lags in the effect of monetary and fiscal policy on aggregate demand? What are the implications of these lags for the debate over active versus passive policy?

2. According to traditional Keynesian analysis, why does a tax cut have a smaller effect on GDP than a similarly sized increase in government spending? Why might the opposite be the case?

3. What might motivate a central banker to cause a political business cycle? What does the political business cycle imply for the debate over policy rules?

4. Explain how credibility might affect the cost of reducing inflation.

5. Why are some economists against a target of zero inflation?

6. Explain two ways in which a government budget deficit hurts a future worker.

7. What are two situations in which most economists view a budget deficit as justifiable?

8. Some economists say that the government can continue running a budget deficit forever. How is that possible?

Order Similar Assignment Now!

  • Our Support Staff are online 24/7
  • Our Writers are available 24/7
  • Most Urgent order is delivered within 4 Hrs
  • 100% Original Assignment Plagiarism report can be sent to you upon request.

GET 15 % DISCOUNT TODAY use the discount code PAPER15 at the order form.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page: