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Jump to... Question 6 of 9 Avallable Due Date Points Po Grade Ca Sapling Learnin

ID: 1112383 • Letter: J

Question

Jump to... Question 6 of 9 Avallable Due Date Points Po Grade Ca Sapling Learning high rates of Please complete the statements below, then answer the questicunemployment kow rates of unemployment high rates of inflation Descript Policies: table) ow rates ofinftation An ideal economic situation for a central bank would be one of Select answer, suggesting that output is high, coupled with Select answer 1 , suggesting thatutput giving central banks more leeway to help mitigate recessions. You can You can give up c You can until you However, due to real shocks which increase input prices, central banks must sometimes choose between low rates of growth, resulting in Select answer u lose answerin attempt or equally unwanted Select answer O eTextbo might become too high, prompting the Fed If the Fed increases the money supply too much contract the money supply and potentially sending the economy into Help wi Odisinflation, recession Ol inflation. recession O Web Hel inflation; expansion deflation, exp kAnswer 0 NextExit IC

Explanation / Answer

Ans:

1) Low rate of unemployment , Low rate of inflation

2) High rate of unemployment , High rate of inflation

3) Inflation , recession

when the unemplyment is low it is a economic situation with high output and when inflation is low it is more easy to overcome recessions. In the same a high unemployment and high inflation is a economies bad situation with low growth rate. The increase in money supply too much will cause inflation and its contration may cause recession.