A brief explanation about Inflation and policies would be made for various situations.
List and describe the two types of inflation. Which type of inflation would most likely be associated with a negative GDP? Which type of inflation would be most likely associated with a positive GDP gap?
Illustrate expansionary and contractionary fiscal policy. What policy would be utilized in each of the following scenarios; depression, recession, and robust growth with inflation. What are some of the implementation problems with fiscal policy?