1 Inflation: definition, measurement, forms, causes and mechanism.
2 Types of inflation. Demand inflation. Supply inflation
3 Inflation and unemployment. Types of unemployment. Okun's Law, Phillips Curve
4 Features of inflationary processes and socio-economic consequences in Russia
5 Economic policy in terms of inflation and unemployment. Anti-inflation policy and its implementation in Russia
Active forms of conducting classes
A) Messages:“The concept of inflation, its essence, measurement and features. Types of inflation.
The message should be clarified with the help of students' questions. The result of the discussion: an independent definition of the concept of inflation and its types, their comparison and characteristics.
B) Group conversation: Causes of unemployment in Russia. Ways out of the current situation on the example of the Krasnodar Territory.
Analysis of the state of unemployment in the Krasnodar Territory, its features and ways to eliminate it.
b) Collective decision and discussion of the next tasks:
A task.
Over the past 10 years, inflation in Russia has amounted to 10,000%. Calculate how many times the prices have increased?
Independent work
The purpose of independent work is effective preparation for the lesson on this topic.
To do this, you need to study the basic economic concepts:
inflation, suppressed inflation, open inflation, creeping inflation, runaway inflation, hyperinflation, stagflation, demand-pull inflation, cost-push inflation, price index, unemployment, frictional unemployment, structural unemployment, seasonal unemployment, cyclical unemployment, hidden unemployment, inflationary expectation, full employment, natural unemployment rate, unemployment rate, Okun's law, Philips curve.
Independent work allows the student to consolidate previously acquired knowledge using the following methods.
BUT) Problem solving:
Task 1.
The store needs laborers. The demand for labor is described by the equation L=10 x 0.2W. 7 people responded to the job advertisement. Two of them are willing to work for at least 40 monetary units per hour, two - at least 25 monetary units per hour, two - at least 20 monetary units per hour, one - at least 15 monetary units per hour.
Determine: a) how many workers will be employed and at what level of payment; b) the state legislates minimum level daily wage of 40 monetary units per hour. How many workers will be hired by the store manager in this case?
Task 2.
Conditional data are available: the actual GNP in the nth year amounted to 1,000 billion monetary units. natural level unemployment was 7%.
Calculate the amount of potential GNP in the nth year.
B) Writing essays on the proposed topics:
1. Inflation in domestic economy: its features.
2. Features Russian market labor and prospects for its development.
3. The mechanism of regulation of employment in a market economy.
4. Inflationary processes in the economy of the Kuban and features of their manifestation.
AT) Written testing:
1. During a period of accelerating inflation interest rate:
a) Rising as employment falls
b) does not change
c) Falls because the employment rate falls
d) rises as the price of money falls
2. In conditions of full employment, the level of frictional unemployment should:
a) Be less than 1%
b) Be less than the rate of cyclical unemployment
c) equal to zero
d) All answers are wrong
3. Unemployment that exists in countries affected by economic recession is called:
a) Structural
b) stagnant
c) Cyclic
d) Hidden
e) Friction
4. According to the classical theory, unemployment is the result of:
a) The actions of monopoly firms
b) Imperfections market mechanism
c) Actions of trade unions and the state
Inflation is one of the most serious problems in the economy of most countries of the world. The phenomenon of inflation existed at the beginning of the development of monetary relations in society and, as a rule, it manifested itself in difficult times for states and communities, such as wars and coups d'état. To date, inflation has become a constant companion of states, taking on a chronic form. What is inflation in fact, what are the reasons for its appearance, what does it lead to, and what methods of overcoming inflation are considered the most effective in the 21st century.
Causes and types of inflation
To consider the causes of inflation, it suffices to refer to the equation of exchange (2.1), transformed into equation (2.4), from which it is clearly seen that the absolute rise in prices (P) is directly proportional to the volume money supply(M), and inversely proportional to the growth of output (Y). As for the turnover rate of the same monetary units, in this case it is impossible to approach it (the turnover rate) from the standpoint of the classical quantitative theory, which accepts the turnover rate of the same monetary units as a constant value.
Inflation is a steady increase in the general level of money prices. Inflation control is a top priority for government policy these days. To better understand the reason for this attention to this problem, consider the impact of rising prices, or, equivalently, a decrease in the value of money.
Potential Benefits of Inflation
At one time, it was believed that a weak increase in the price level generally improves the investment climate and helps maintain aggregate demand, and therefore such an increase did not cause significant concern.
Inflation is an increase in the general (average) price level over time. It is characterized general index inflation - an index of changes in the general (average) price level in the country and price levels for certain types of goods, works and services, counted from the initial moment - the moment of development of project materials. Inflation affects the value of the effectiveness of long-term investments, the conditions for their financial feasibility, the need for financing and the effectiveness of participation in the equity project.
Many citizens, whose well-being has declined over the past 2 years, are interested in what the cause of their troubles depends on - a decrease in purchasing power. We answer - inflation in Russia in 2018 will be hostage mainly to two factors:
1. Economic sanctions against Russia, including a credit blockade, which significantly affects banking system, the real sector of the economy.
Oil prices remain the main driver of global financial markets and the dynamics of the ruble exchange rate Photo: Shutterstock
Oil fell from 31 to 27 dollars per barrel. and recovered. The ruble failed and lingered around 80 per dollar. But the short-term fall of the ruble to 86 led to the panic of ministers, banks and the townsfolk, who again rushed to the stores for household appliances.
Prices for products at the end of the year rose significantly more than inflation. Experts warn that growth will continue.
Not to fat...
It is noted that most of all the rise in food prices affected butter. Over the year, it has risen in price by 20.5%. Other dairy products increased in price by 9.5%. Fish and seafood went up by 8.6%, cereals - by 6.4%, bread and bakery products - by 5.9%. Pasta went up by 4.5%. The rise in prices for sunflower oil last year amounted to 3.4%. Meat added 1.6% in price.
However, there is good news: not everything went up in price.
At the end of the year, granulated sugar fell in price by 6%, eggs - by 0.7%, vegetables and fruits - by 6.8%.
Rosstat specifies that average cost the minimum set of food products in Russia in 2016 increased by 3.5% and amounted to 3.7 thousand rubles.
Growth, even minimal, especially in the context of declining incomes (12% over the past 2 years), is tangible: Russians save not only on clothing, leisure, household appliances, but also on food. Good nutrition is no longer a natural need, but a luxury that not everyone can afford.
Russians save not only on clothes, leisure, household appliances, but also on food.
The Tsenomer portal calculates the consumer basket per person in large retail chains in Moscow. So, in order to buy the required volume, according to the minimum volume of food consumer basket products prescribed in the Federal Law of the Russian Federation of 03.12. 2012, a visitor to Pyaterochka will spend 5,887 rubles a month, Ausha - 7,809 rubles. "Crossroads" will cost more - 8100 rubles. per month. In the "Azbuka Vkusa" you will have to leave 10,776 rubles. Recall that in Russia in the III quarter of this year, the government established living wage- 9889 rubles. Food in consumer basket should be 50% of its volume.
“Import substitution programs in our country are still in their infancy, so their effect is felt much weaker than we would like,” says Stanislav Cherkasov, consumer market and pricing policy expert, president of Salt Rus. - We must start with the fact that when we faced the need to develop our own production, we did not have any base at all. Over the previous two years, the base has been created, in order to see the effect of the import substitution action, at least another two to three years are needed. Most of the raw materials still continue to come from foreign countries.”
Escaping interest
Experts are certainly right: the inflation rate published by Rosstat is averaged. Much depends on the region of consumption. In some areas, these data may correspond to reality, in others - differ by several times.
DailyMoneyExpert decided to compare prices in a single store in a single region of Russia and analyze their dynamics from January 2016 to January 2017. We chose the food products that Russians bought the most before the crisis in the Perekrestok chain of stores in Ryazan. Prices are taken from the catalogs of the trading network. The difference at the end of one year turned out to be insignificant, however, the DME inflation rate was almost three times higher than the Rosstat data.
Food prices, Perekrestok stores, Ryazan, 2016–2017
Source: Perekrestok store catalogs
The difference for 12 months was 481 rubles, or almost 15%. This has a significant effect on the purchasing power of the population. Russians have long preferred bread and potatoes instead of milk and meat, the benefits of which are doubtful.
“Inflation of costs takes place in Russia,” says Yuri Goldberg. - Monopolies dictate the fashion for the growth of tariffs. Business entities (due to rising prices in production chains and starting from producer prices of raw materials for their production, as well as electricity, heat and transport services) increase the prices of final products. They also pass on to the consumer the burden of the crisis, and the growth of their costs due to the need to pay high enslaving interest to banks. Credit rate from banks for production and Agriculture also strongly spurred prices, as did the increase in tariffs of monopolies. After all, the rate is determined by the policy of the Central Bank and is a record high for many years.”
Prices don't stop
In 2017, experts predict that prices will continue to rise. It is too early to hope for import substitution and higher oil prices.
“Food is getting more expensive due to instability national currency and natural inflation, which in the post-crisis period, which will be 2017, cannot be less than 10–15% in real terms,” warns Stanislav Cherkasov.
According to Stanislav Cherkasov, first of all, the rise in price will affect products containing cocoa beans. It's about coffee and chocolate. “Their value could rise up to 20% as there is a shortage of cocoa beans on the market this year due to a poor harvest.”
Growth is also promised for dairy products, the prices of which already seem incredible. However, growth will not be so rapid, experts reassure.
“The cost of milk next year will be influenced by two factors: a reduction in consumption volumes, which invariably leads to higher prices due to a reduction in production volumes, and a decrease in the share state support for domestic milk producers,” the president of “Salt of Russia” clarifies.
Nevertheless, both experts and market participants urge not to lose optimism. 2017 is unlikely to be an economically favorable year. However, it will be more stable than the previous two. Probably, stability will mean not making your favorite foods cheaper, but getting used to new prices and eating what is available, not what you like.
Grocery results 2016: we eat well, but little Olivier index-2017: alarming cheapness
All topics:Macroeconomics
Inflation (from Latin inflation - inflation) is a steady upward trend in the average (general) price level. It is a long-term process of reducing the purchasing power of money.
The definition of inflation includes the concept of the inflation rate, which is determined by the formula:
I = (P - P(-1)) / p(-1) ,
where R - average level prices in the current year;
Р(-1) – average price level in the previous year.
Moreover, the average price level is measured by price indices.
The price level under open and hidden inflation is determined differently. In the first case, by the growth rate of the price level (price index), in the second case, by the ratio of state prices to the prices of the legal or shadow market, the volume of forced savings, etc.
The process opposite to inflation is called deflation, and the slowdown in inflation is called disinflation. The price level in the future from the point of view of economic agents is called inflationary expectations. Inflation differs according to the following main criteria:
1. Depending on the dimensions state regulation Distinguish between open and hidden inflation. Hidden inflation operates in conditions of strict government regulation and manifests itself in the growth of shortages of goods and services.
Open inflation operates in conditions of free prices, characteristic of a market economy.
2. Depending on the rate of price growth, inflation is moderate, galloping and hyperinflation. Moderate is inflation, the annual rate of which is measured by a number with one sign, i.e. to 10%. At moderate inflation price increases are slow and predictable, but prices are rising faster than wages.
Galloping - inflation, the pace of which is measured in two- or three-digit numbers ranging from 20 to 200%. It indicates serious violations monetary policy in the country. Money loses its value, so it stores only the minimum amount of money needed to complete day-to-day transactions. Financial markets fall into a depression, because the capital goes abroad.
Hyperinflation - inflation over 50% per month, the annual growth of which is a four-digit figure. Hyperinflation has the strongest impact on the redistribution of wealth. It causes distrust of money, as a result of which there is a partial return to barter and the transition from cash to wages in kind. 3. Depending on the degree of foresight, expected inflation and unexpected inflation are distinguished.
Expected inflation allows you to prevent or reduce the losses caused by inflation. The unexpected leads to a decrease in all types of fixed income and a redistribution of income between lenders and borrowers.
4. Depending on the factors that generate inflation, demand-pull inflation and cost-push inflation are distinguished. Demand-pull inflation is a type of inflation caused by an excess of aggregate demand that production cannot keep up with, i.e. demand exceeds supply.
Cost-push inflation is a type of inflation that occurs as a result of an increase in average costs per unit of output. An increase in costs reduces the amount of output that firms are willing to offer at the current price level. As a result, supply decreases while demand remains unchanged and the price level rises accordingly.
The increase in production costs is due to three reasons:
a) an increase wages;
b) rise in price of raw materials, fuel;
c) an increase in indirect taxes, excises.
The combination of demand-pull inflation and cost-push inflation forms an inflationary spiral. Inflationary expectations of economic agents play a key role in this process.
Inflation at a certain stage of its development becomes a factor in the degradation of the entire economy. Inflation has a particularly detrimental effect on firms and enterprises with a slow turnover of capital and a seasonal nature of production. All segments of the population suffer from inflation, and especially those with fixed incomes, since compensation for inflationary losses occurs with a delay and not in full.
Losses are suffered by creditors, landlords who provided cash or real estate under contracts, especially medium and long-term.
Ultimately, inflation is fraught with a real danger of a social explosion, because it generates hatred among the people for those who profit from intermediary operations, from the resale of goods and currency, who use power for personal gain.
The causes of inflation lie in general macroeconomic balance between aggregate demand and aggregate supply, in the entire system of disproportions throughout the entire economy of a given country. The immediate causes of inflation are:
1. To internal reasons:
a) the deformation of the economy, which is manifested in a significant lag of industries that produce consumer goods from industries that produce means of production;
b) deficit state budget associated with an increase public spending;
c) disproportions at the micro and macro levels, which are a manifestation of the cyclical development of the economy;
d) state monopoly on foreign trade;
e) the monopoly of the largest corporations, firms, companies and the establishment of prices in the markets;
f) high taxes, interest rates for loans, etc.
2. External causes include:
a) structural world crises (raw material, energy, food, environmental). They are accompanied by a multiple rise in prices for raw materials, oil, etc. Their import becomes a pretext for a sharp increase in prices by the monopolies;
b) exchange of national currency for foreign currency by banks. It causes the need for additional emission paper money that replenishes the channels monetary circulation and leads to inflation;
c) reduction of proceeds from foreign trade;
d) negative balance of foreign trade and balance of payments, etc.
According to external factors, it should be noted that during structural world crises, when goods and services cross at the same time other countries and inflation.
The anti-inflationary policy includes two fundamentally different areas of this policy:
— Regulation of aggregate demand.
— Regulation of aggregate supply.
Supporters of the first direction are Keynesians, supporters of the second - monetarists.
The Keysian direction of anti-inflationary policy focuses on the regulation of aggregate demand, believing that effective demand stimulates supply growth. Effective demand factors can be an increase in government spending and cheap credit, which, in turn, cause an increase in investment demand; investment demand will generate supply demand; an increase in supply will lead to a decrease in prices, i.e. to slow down or completely eliminate hyperinflation, bringing it to a moderate level.
The monetary direction of anti-inflationary policy focuses on the regulation of aggregate supply. Monetorists believe that Keynesian policy helps the country get out of the crisis ahead of schedule, but does not allow eliminating all its causes, there are disproportions between supply and demand. The founder of monetorism believes that inflation is a purely monetary phenomenon, its source is illiterate government intervention in the economy, and therefore ways out of inflation should be sought not in additional government spending, but in supply growth. Monetarists recommend a set of measures to reduce demand: this is a monetary reform, an increase in the cost of credit, a reduction budget deficit, tax rates. These measures, in their opinion, should cause a decrease in consumer and investment demand, the bankruptcy of inefficient production, a decline in production, which in turn will free market niches from bankrupt producers, but keep them for strong, competitive ones. Reducing tax rates will increase investment, increase product supply, and ultimately lower prices.
In practice, many countries use compromise tactics to fight inflation, using both Keynesian and monetary approaches.
Source - Yallai V.A. Macroeconomics. Pskov, PSPI, 2003. 104 p.
All theoretical articles
CATBACK.RU 2010-2017
In accordance with the causes of inflation, inflation of demand and inflation of supply or costs are distinguished. In this case, the main reasons are the growth of government orders, the growth in demand for capital goods under the condition of full employment and almost full capacity utilization, as well as the purchasing power of workers. For this reason, there may be an excess of money in relation to the quantity of production, so there is an increase in prices.
cost inflation characterized by an increase in prices due to an increase in production costs. Here the reason may be the oligopolistic pricing policy, the state financial and economic policy, the increase in prices for raw materials, the influence of trade unions, which may require wage growth. In practice, it is not easy to distinguish one type of inflation from another, since they are closely related and are in constant interaction. For example, wage growth can be seen as in demand-pull inflation, and in another position as cost-push inflation.
Any inflation manifests itself as a violation between supply and demand. First of all, this equilibrium is disturbed due to changes in demand, in which case demand-pull inflation occurs. Another situation is an increase in production costs, so demand-pull inflation and cost-push inflation should be distinguished. Cost-push inflation raises the supply price.
The discrepancy between supply and demand to a greater extent depends on the degree of development of the depth of several types of monopoly, including:
These monopolies are interconnected and affect the dynamics of both supply and demand, while the equilibrium point shifts up along the price axis.
With more detailed consideration demand inflation, it is possible to determine the excess of money in relation to the quantity of production, rising prices. With such inflation, employment is characterized as full, since it is stimulated by the high price of industry, which maximizes the capacity of production.
Demand-pull inflation can be caused by several monetary factors, the main of which is the militarization of the economy or an increase in military spending. Thus, military equipment is becoming less and less suitable for use in the civilian industry, so the monetary equivalent that opposes military equipment can turn into an unnecessary factor for circulation.
Another important cause of demand-pull inflation is the government budget deficit and the increase in domestic debt. The state covers the deficit through the placement of loans in the money markets or through the additional issue of fiat banknotes. central bank.
There are several other causes of demand inflation that can be considered. The main one is the credit expansion of banks. An important cause of demand inflation also lies in imported inflation, which is the emission of the national currency more than the needs of the commodity turnover. This situation arises when states with an active balance of payments purchase foreign currency.
Another reason is over-investment in heavy industries. In this case, an element of production capital is constantly withdrawn from the markets, instead of which additional cash equivalents enter into circulation.
Any state quite often faces such moments as inflation and deflation. They represent changes in the general price level in the economic environment. The price goes up during deflation and goes down during inflation. Most often, in practice, it is the second option that occurs, and the fall in the price level occurs immediately for all goods at the same time. But an increase in the price level is usually observed only for certain groups of goods. As is clear, deflation is understood not only as a direct increase in prices, but also all the accompanying processes, which will be discussed later (in case you do not quite understand what inflation is).
Having considered the concept of deflation, it is also worth mentioning the main causes of deflation and its possible consequences. This phenomenon can be caused by a variety of things:
In most cases, the consequences of deflation are negative, for example, it can be the emergence of the so-called pent-up demand - buyers deliberately postpone the purchase of goods, which ultimately leads to a reduction in demand and problems in production. Also, this phenomenon can lead to a decrease in the level of wages, volumes bank lending, loss of profitability of companies and, as a result, a reduction in staff. Such processes do not have the best impact on the economy.
As for the opposite phenomenon - inflation, it can be caused by an increase in aggregate demand, a decrease in aggregate supply. Its consequences are quite extensive: in the sphere of production, this can be a decrease in employment, depreciation of loans and the entire accumulation fund. The danger to the money supply is expressed in the fact that money loses its own value and can lead to financial ruin.
Consequences for economic relations- lenders stop lending, buyers begin to doubt the real value of goods, and business owners cannot choose a reasonable price for their products.
Only normal inflation is allowed, which can stimulate the development of the economy if it is carefully controlled.
An example of this phenomenon is the current deflation of the ruble, which has already significantly affected the change in market prices and the level of consumer demand.
The definition of deflation speaks for itself: as prices rise, buyers become more difficult to choose, they have to settle for goods of lower quality. Therefore, such a process not only negatively affects the domestic market, but also significantly affects the external economy.
An example of inflation can be the end of the 90s in Russia, when price containment and ignoring demand caused an acute shortage of goods, many of them completely disappeared from store shelves. Coupons and a card system were introduced in the cities, and grocery orders were formed. As a result, all this grew into strong social tension, political instability and a deep crisis. Those times were later called not just inflation, but hyperinflation.
For the working class of the population, the main criterion for the danger of deflation is the high risk of losing a job, as well as limited opportunity in receipt consumer loans. The average man in the street has to postpone more or less large purchases for a better future, because the risen prices do not allow him to freely dispose of financial resources.
Having figured out why deflation is bad, you also need to understand what is better inflation or deflation. Inflation under certain conditions is quite normal economic process. With normal inflation general increase the price level is no more than 5% annually. But deflation can be a worrying harbinger of a crisis, especially if it manifests itself simultaneously in different areas. It is also usually accompanied by severe unemployment.
Having considered what is deflation in the economy and its reverse process - inflation, we can say with confidence that both of these processes, with their uncontrolled development, can cause quite serious instability in the state's economy.
That is why on present stage development of the economy, even the slightest changes in prices are carefully controlled in the direction of decreasing or increasing in order to prevent the influence of such processes on the solvency of the population, the functioning of domestic enterprises and maintain the domestic market at a stable level.
depending on the rate of price growth distinguish:
Moderate I. when prices rise slowly, up to 10% per year. Within it, sometimes creeping, - up to 5% per year. At the same time, prices are quite stable, savings do not depreciate, and there are normal conditions for investment.
Galloping ("Latin") I.- characterized by price growth up to 100-200% per year. Money quickly depreciates, everyone tends to invest it in material values, in foreign currency, invest abroad. The conditions for the development of the economy are significantly distorted, but inflation may still not cause destructive consequences for long periods.
Hyperinflation- prices are growing very fast, up to 1000% per year or more. All subjects of the economy strive to get rid of money as quickly as possible. The population spends all current income and savings on the purchase consumer goods and any other material values(real estate, gold, currency), which are not necessarily subsequently used rationally. Businesses stockpile raw materials and accumulate finished products in anticipation of a new surge in prices. The volumes of all kinds of speculative operations are growing. Inflationary trends are reinforced by a surge in aggregate demand under the pressure of inflationary expectations. Starts to unwind inflation spiral: fast growth the cost of living forces a sharp increase in nominal wages, which, in turn, results in rising costs and a new increase in prices. In Ukraine, hyperinflation developed in 1992-1994. In 1993, the price index exceeded 10,000%.
In terms of suddenness I. is divided into:
anticipated (predicted) which economic entities expected and even planned. For example, the expected rate of inflation is included in the budget calculations for the coming financial year.
This development of events makes it possible to neutralize the negative consequences of inflation to a certain extent.
Unforeseen - often associated with inflationary shocks, i.e. sharp jumps in the price level, which can become an impetus for a long-term inflationary process.
Depending on the forms of manifestation,"depths" of state regulation and tools of anti-inflationary policy stand out I.:
Explicit (open) - manifested in rising prices and depreciation of the national currency.
Hidden (repressed)- manifests itself in the shortage of goods and services, with the administrative regulation of prices, if they are underestimated and do not correspond to the equilibrium level.
Depending on the direction of inflationary impulses in relation to the system happens:
Imported I., if the reason is an increase in prices for imported goods subject to a constant exchange rate of the national currency . The greater the share of foreign trade in GNP, the greater the effect of "import" I.
exported I.- with an increase in prices for domestic goods manufactured for export.
depending from the object of study allocate I.:
national, regional- where the object is the dynamics of wholesale and retail prices, the GNP deflator in the country and at the level of the association of countries.
World- the general change in the level of prices in world markets.
depending from the success of the economy's adaptation to the rate of price growth distinguish:
balanced and., when prices grow moderately and steadily, and other indicators change adequately.
unbalanced and. - prices jump at different times, which leads to a change in relative prices and deforms the structure of demand, and the economy cannot adapt to this.
depending from the ability of the state to influence I., it happens:
controlled- the state can slow down or accelerate the pace of I. in the medium term.
Unmanaged- there are no real sources for correcting I.
depending from the causes of occurrence and the mechanism of development distinguish:
Demand inflation which arises due to the fact that the growth rate of aggregate demand exceeds the growth rate of the national volume of production in conditions of limited production potential. Economics: "Too much money chasing too few goods."
cost inflation(or supply-side inflation) develops when the increase in production costs outstrips the increase in labor productivity and real income, i.e. under the influence non-monetary factors.
It is possible to trace the mechanism of development of I. by analyzing the last two types.
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1. During a period of accelerating inflation bank rate percent:
a) falls because the price of money falls
b) falls because the employment rate falls
c) rises because the price of money falls
d) does not change
2. A pronounced anti-inflationary fiscal policy in the context of demand inflation implies:
a) increase the level of taxation and reduce government spending
b) reduction in both tax revenues and government spending
c) an increase in taxes and an increase in government spending
d) rate cut bank interest and increased public spending
3. Pronounced anti-inflationary monetary policy suggests:
a) increase the level of taxation and reduce government spending
b) an increase in the interest rate and the sale of government bonds by the Central Bank
c) reduction of the banking reserve ratio and the sale of government bonds by the Central Bank
d) the purchase of government bonds by the Central Bank and a decrease in the interest rate
4. In how many months will prices double if the monthly inflation rate is 3.5%?
a) 7 b) 20 c) 35 d) 70
5. In reporting year compared with the base: prices increased for food products - 4 times, for services - 2.5 times, for industrial goods - 3.5 times; the level of income during this time increased by 333%. How has the standard of living changed in the reporting year?
6. Determine the monthly inflation rate (in percent) if prices double every 14 months?
a) 5% b) 7.8% c) 10% d) 2.8%
7. In order to defeat inflation, it is necessary:
a) stop issuing paper money
b) freeze prices
c) freeze income
d) reduce state budget expenditures, stimulate business activity, tighten tax and credit policies
a) real price liberalization and transition to market pricing
b) the release of the huge inflationary potential accumulated in a suppressed form in command economy
c) a state measure for multiple administrative price increases for goods and services
d) an interim measure followed by public policy strict regulation of prices for goods and services
9. Inflation accompanied by general state control behind the price level is called:
10. The inflation rate is the change over a certain period of time:
a) the purchasing power parity of the national currency
c) the average price level
d) the discount rate of interest
11. The most preferred types of inflation for the economy:
a) open, unexpected, creeping
b) open, moderate, expected
c) hidden, galloping, expected
d) open, expected, galloping
12. Inflation is a constantly existing upward trend in the economy:
a) prices for essential goods
b) general price level
c) price limit
d) prices for industrial goods of higher quality
1. During a period of accelerating inflation, the bank interest rate˸
a) falls because the price of money falls
b) falls because the employment rate falls
c) rises because the price of money falls
d) does not change
2. A pronounced anti-inflationary fiscal policy in the context of demand-pull inflation suggests˸
a) increase the level of taxation and reduce government spending
b) reduction in both tax revenues and government spending
c) an increase in taxes and an increase in government spending
d) lowering the bank interest rate and increasing government spending
3. A pronounced anti-inflationary monetary policy implies ˸
a) increase the level of taxation and reduce government spending
b) an increase in the interest rate and the sale of government bonds by the Central Bank
c) reduction of the banking reserve ratio and the sale of government bonds by the Central Bank
d) the purchase of government bonds by the Central Bank and a decrease in the interest rate
4. In how many months will prices double if the monthly inflation rate is 3.5%?
a) 7 b) 20 c) 35 d) 70
5. In the reporting year, as compared to the base year, prices for foodstuffs - 4 times, for services - 2.5 times, for manufactured goods - 3.5 times; the level of income during this time increased by 333%. How has the standard of living changed in the reporting year?
6. Determine the monthly inflation rate (in percent) if prices double every 14 months?
a) 5% b) 7.8% c) 10% d) 2.8%
7. In order to defeat inflation, it is necessary˸
a) stop issuing paper money
b) freeze prices
c) freeze income
d) reduce state budget expenditures, stimulate business activity, tighten tax and credit policies
a) real price liberalization and transition to market pricing
b) releasing the huge inflationary potential accumulated in a repressed form in a command economy
c) a state measure for multiple administrative price increases for goods and services
d) a temporary measure followed by a government policy of strict regulation of prices for goods and services
9. Inflation accompanied by general government control of the price level is called ˸
10. The rate of inflation is the change over a certain period of time˸
a) the purchasing power parity of the national currency
b) exchange rate
c) the average price level
d) the discount rate of interest
11. The most preferred types of inflation for the economy˸
a) open, unexpected, creeping
b) open, moderate, expected
c) hidden, galloping, expected
d) open, expected, galloping
Tests for self-control of the skills of analyzing acquired knowledge - the concept and types. Classification and features of the category "Tests for self-control of the skills of analyzing acquired knowledge" 2015, 2017-2018.
1. Which of the following taxes can be transferred to the final consumer? - (3 options are correct) a) value added tax b) property tax of enterprises and organizations c) corporate income tax d) inheritance and gift tax e) income ... .
1. The regularity of the transition period and structural restructuring of the economy is NOT: a) financial stabilization b) budget crisis c) transformational recession of the economy d) loss by the state of the functions of a single manager economic resources 2. Privatization... .
1. The human development index is determined by a combination of the following indices: - (3 options are correct) a) life expectancy b) level of education c) GDP per capita d) unemployment rate e) level consumer prices 2.... .
1. Current account, as component balance of payments country, includes: - (4 options are correct) a) merchandise exports b) net investment income c) transport services to foreign partners d) changes in the country's assets abroad e) unilateral ... .
1. Which of the following parameters should be attributed to the recession (crisis) phase? - (4 options are correct) a) a sharp decline in production b) an increase in unemployment c) a decrease in investment d) a fall in prices e) a fall in the rate of loan interest f) an increase in the exchange rate of securities ... .
1. Which of the following incomes should be included in GDP? - (3 options are correct) a) income (salary) of a teacher b) income from the sale of an old moped c) income of a gas station owner d) remittance from parents to a university student e) monetary ... .
