• Predict whether the years following the next presidential election will bring us inflation, deflation, or relatively stable prices. Provide support for your response. I believe the prices will relatively remain stable, but overtime there will be inflation, and this is to pay for government funded programs and to pay for the offset costs associated with new laws and regulations governing healthcare.
With the current fiscal cliff approaching some wonder will a deflation occur, if this happens then recession will then more likely occur, and this is due to the private sector being discouraged from making long-term commitments, that could fuel job growth and increase the economic recovery, which has been increasing at a rate of 2 percent over the past two years. • Analyze how inflation could occur in a society that relies exclusively on barter versus money.
Speculate what form inflation would take and how you would recognize it. Provide support for your response. Inflation would occur due to economic growth, and in order for it to be sustained, increasing productivity must be matched by an increase in demand for the products being bartered. The market type barter society would be unable to generate this increase without establishing some type of momentary system, aside of bartering.
Anticipated inflation would be the type of inflation to occur, because in the barter type society if there is more than one person bartering or selling the same product, therefore creating the increase in competition and then driving up the price or the bartering amount would increase causing inflation within the economy. “Economic Growth” Please respond to the following: • Take a stand on whether or not economic growth really makes people better off in the long term. Provide support for your response.
There are benefits to economic growth, like lower unemployment, better education, which will give a greater diversity of skills and the improvement in public services. There is also a down-turn to economic growth that can cause an increase in inequality, because the individuals that usually benefit from the growth are the one that are often highly educated and whose family has some type of wealth. So this creates the have and the have not’s in society, which would increase crime and social problems for the less fortunate.
Give your opinion on whether or not the development of the International Space Station stimulated economic growth. Justify your response. I don’t think the development of the International Space Station stimulated the economy, due to the fact that there are only a select few industries within the space industry or community who benefited from the production of parts, services and support elements. Through a local internet search within my local area there is not a company supporting the International Space Station, so therefore this program does not stimulate economic growth here.