How are Automatic Stabilizers Used to Combat Inflation?
In today's economy, there are devices present called automatic stabilizers. Automatic stabilizers, are mechanisms which aid in the correction of an economic problem without the interference of anyone or anything. They are perhaps most useful to combat demand - pull inflation. Demand - pull inflation, is when prices rise because the economy cannot produce enough goods to satiate the economy. An automatic stabilizer, that is beneficial to combat such a problem, is a progressive tax. A progressive tax, is a tax that becomes a higher rate for each increasing level of gross domestic product. If such a tax is present within the economy, when the society becomes more prosperous, such as in the situation with demand-pull inflation, the citizens are taxed more, therefore decreasing the marginal propensity to consume, and decreasing consumption. The marginal propensity to consume is the fraction of any change in disposable income spent for consumer goods. If this decreases, demand will not be as high above, or even above where the supply is, therefore reducing the demand - pull inflation.
Another way to stabilize demand - pull inflation is to reduce government spendings. Government spendings, are the spending that the government make with the tax revenues, and they add to the gross domestic product. An automatic stabilizer that will lower gross domestic product is welfare. As income rises, there are less people who need welfare, therefore reducing the amount of government spending, and lowering the gross domestic product.
Due to such automatic stabilizers as progressive tax rates and the decrease of government spending due to welfare, therefore a decrease in government borrowing, therefore a decrease in the demand for the dollar, therefore a decrease in the interest rate, which would cause a decrease in the foreign demand for dollar, which would cause the dollar to depreciate, therefore lowering inflation due to a less valuable dollar.
Specifically for the lab discussed we were to determine whether sucrose of RO H20 was of higher or lower concentration. We were able to determine permeable membranes were depending on the concentration of the solution or solvent. In this case we learned that solution and solvents of lower concentration allow for greater flow through the semi-permeable membrane, which supports the idea of diffusion. We learned that sucrose solution allowed for greater diffusion than RO H20. Also chloride ions and aluminum allowed for diffusion whereas starch and sulfate ions did not. We also learned Elodea in NaCl solution underwent a process called plasmolysis where the cells
Entrepreneurship has taken diverse views since its discovery in commerce. People had varied notions as to what it entails and the characteristics an individual needs to have to be called an entrepreneur. The concept of entrepreneurship is seen as the process of uncovering and developing an opportunity to create value through innovation and seizing that opportunity without regard to either resources (human and capital) or the location of the entrepreneur – in a new or existing company (Churchill, 2003). Entrepreneurship is the willingness
If I increase the amount of lit candles that have been placed underneath the beaker it also increase how much the water rises under the beaker
Globally, it is felt that entrepreneurship emerged as a progressive and developmental idea for the world of business, Scott (1986). Hence it is in the consideration that entrepreneurship is the vital ingredient not for the current era of globalization only, but also for the future potential performers for creating diverse opportunities, Mita (2002). Entrepreneurs are identified as creator, innovator
Entrepreneurs need to learn to exercise systematic innovation. Successful entrepreneurs attempt to produce value and add by projecting high. They are dissatisfied merely to improve on the already present resources or change the present resources. The attempt to create fresh and distinct values by altering stuff into a resource or aggregating resources in a new and productive form to a greater
Strategy is nothing but a plan to bring up with new and innovative ideas for the future development. Strategy has become an often word that applies to many circumstances and area of business. There are many strategies like sales, innovations, marketing, HR, etc. strategy will change the shape of the company objectives and it will help to reach our goals and aims perfectively. Every organization must need a strategy plan, without strategy plan they will not get any success. Strategic planning is very important to every organization, because through strategic plan we can reduce the cost of the product, increase efficiency and save the time of the project.
As a consequence an entrepreneur has some characteristics and traits that distinguish an entrepreneur from a non-entrepreneur. Entrepreneurs are persons who take action- they engage in vigorous, persistent efforts to convert their ideas and visions into profitable, operating companies. This proclivity c...
level of emission. This in turn would allow them to reduce the cost that they
I disagree with this statement. I don’t think that inflation is always bad for the economy, because inflation can in time lead to deflation. An example of the effect of inflation would be consumers spending less money when prices are constantly rising, because they would rather buy the items now and spend less money than purchasing them in the future. Even though deflation is normally considered a negative thing, it’s not always bad either. Good inflation is something that happens when companies can manufacture good at lower cost without losing revenue or raising unemployment. One way that the government can increase deflation is by putting more money into supply by purchasing securities. In the end, both inflation and deflation are both parts
The cutback of miles from farm to plate ultimately minimizes the gas emitted into the environment.
Question 4: Distinguish between a public relation policy and strategy and then discuss eight key components of a public relation strategy and give relevant example(s) where applicable.
More and more countries are giving more and more importance to entrepreneurship studies and entrepreneurial programmes which have contributed largely to develop and shape an attitude and inclination towards entrepreneurship as a career in students. But still there is a popular question if entrepreneurs are born or made. There have been lot of research to determine if entrepreneurs are a special breed of human, with a need to achieve and succeed or if they can be created through education, training and
The third theory that elaborates on this topic is opportunity-based entrepreneurship theory is associated by names such ad Peter Drucker and Howard Stevenson. According to Drucker and Stevenson, entrepreneurs exploit the opportunities before them, be it in technology or new markets, and create transform lives through them (Teece 2013). This assumption contradicts Schumpeter’s premise that entrepreneurs are not responsible for change though their innovation. In this case, it would be safe to point out that both the ability to cause change and notice situations that require change is part of the ‘process’ of entrepreneurship. Schmitz provides similar notion of opportunity-based entrepreneurship when he notes that entrepreneurship promotes social-economic transformation because of “imitative activities of entrepreneurs” (Schmitz, 1989, p. 721). Schmitz’s model argues that it is the imitating entrepreneur, rather than the innovative entrepreneur who promotes growth in the economy (Schmitz, 1989). Imitating entrepreneurs are those who emulate or duplicate existing innovative ideas of original entrepreneurs and puts them into use.
Strategies: Specific, measurable actions and directions designed to reach the objectives established. Strategies are fulfilled through creation, continuation, change, or elimination of
To understand the role of entrepreneurship in the development of our economy one has to simply define what it means to be an entrepreneur. ‘’An entrepreneur is defined as someone who is creative and identifies an opportunity or gap in the market and evaluates the risk related to the establishment of the business and is prepared to take the associated risk to start the business in the quest for making a profit”( Business Management, a contemporary compilation 2nd edition)