Government intervention in conditions like inflation
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Based on the "10 Principles of Economics" please help to answer the following questions.
1. Under what conditions might government intervention in a market economy improve the economyâ??s performance? Give at least two examples.
2. Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run.
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Solution Summary
Government intervention in conditions like inflation, unemployment, liquidity, and crunch deficit in the balance of payment are discussed.
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Answer:
1. Under what conditions might government intervention in a market economy improve the economy performance? Give at least two examples.
Government intervention in conditions like inflation, unemployment, liquidity crunch deficit in the balance of payment etc helps the ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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