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2007-11-11 06:54:13 · 5 answers · asked by wesley w 3 in Social Science Economics

5 answers

It's not so much that it's hard to solve, but that it is a recurring problem that has to be guarded against, just as recession has to be guarded against.
The economy is constantly "in flux", or changing. An exceptionally strong economy can lead to inflation, while a slow economy can lead to recession. The Federal Reserve monetary policies regulate the economy, and the idea is to guide it so that inflation is minimized and the economy grows steadily rather than going into recession.
This is a very simplistic view, and there are a lot of other factors that affect the economy, but it should help answer your question.

2007-11-11 08:04:41 · answer #1 · answered by fuzmaniac 2 · 0 0

Inflation is not something you can fix once, and it stays fixed. When an economy is growing there are forces in the economy that push inflation upward as firms compete for resources and labor.

2007-11-11 07:08:26 · answer #2 · answered by meg 7 · 0 0

It can't be solved. Companies work against each other to try and make a profit, which in turn hurts the economy and the average person.
Life happens!

2007-11-11 06:58:18 · answer #3 · answered by Anonymous · 0 2

there are a number of different dimensions, and that i've got self belief there have been a number of large explosions .while adult adult males pass into area there are debris of rock and so on around them that would desire to be coming from some form of explosion.Stars explode and that i'm guessing different small planets would desire to burn out to boot .It is sensible to me to have self belief that the universe continues to be evolving(if thats the nicely suited word for it)

2016-10-16 03:45:06 · answer #4 · answered by ? 4 · 0 0

Because it feeds on itself. Prices of goods go up, so to compensate wages are raised, which in turn increases the prices of goods.

2007-11-11 06:58:11 · answer #5 · answered by Anonymous · 0 0

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