pling In the sorting boxes below, please place the items into the correct box ba

Question

pling In the sorting boxes below, please place the items into the correct box based on if they will increase inflation or increase unemployment according to Keynes. If it does not change either, or it decreases both, please leave it unplaced. You may assume that the economy starts at full employment. Increases Inflation Increases Unemployment nterest rates decrease the housing bubble bursts increase in government spending people expect their Suze Orman convinces taxes increase taxes decrease incomes to rise in the future everyone to save more the price of milk increases future returns for foreign incomes decrease corporate office space decrease

Explanation / Answer

Increases inflation:

Interest rate decreses

increase in govt spending

people expect their incomes to rise in the future

taxes decrease

price of milk increases

Unemployment increases:

housing bubble burst

foreign incomes decrease.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.