Purchase Solution

Economic depression and inflation

Not what you're looking for?

Ask Custom Question

What is the difference between economic depression and inflation? Describe the nature of an appropriate fiscal and monetary policy in each of these situations.

Question also in attachment

Purchase this Solution

Solution Summary

The difference between economic depression and inflation and appropriate fiscal and monetary policy in each of these situations are discussed.

Solution Preview

A depression is a recession (decline in GDP / real output for 2 or more quarters) that lasts longer and has a larger decline in business activity. On the other hand inflation is a general rise in prices across the economy.
Thus a depression is characterized by a negative average real output growth rate while during inflation there is a rise in price levels in the economy.
Fiscal and monetary policy in ...

Purchase this Solution

Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.