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List the various causes of inflation and determine if they are an injection or a leakage related questions

  • 1List the various causes of inflation and determine if they are an injection or a leakage

    List the various causes of inflation and determine if they are an injection or a leakage. Demand-pull theory:This is a leakage. If all sectors in the economy try to buy more than the economy can produce, people may start to rely on imports. Therefore, demand-pull is a leakage.Deficit of the federal government:This is an injection. If government expands the money supply to keep the interest rates down, the federal deficit will increase but money will be injected into the income.Cost-push theory:This is a leakage. If laborers are given higher wages, they will have more money to save and will be taxed higher. Therefore, cost-push theory is a leakage.Wage-price spiral:This is a leakage. If laborers are paid more, they will be taxed more. Therefore, wage-price spiral is a leakage.Poor management:This is leakage. If money is not spent on innovative practices or on investing in research and development, it will likely be saved. Therefore poor management is a leakage.Monetary growth:This is an injection. If the amount of money in the economy increases, it will cause certain groups to have increased buying power. This will cause money to be put into income. I am not very sure about my answers. Are they correct? Thanks.

  • 2Does the demand-pull theory represent a leakage or injection in the economy

    Does the demand-pull theory represent a leakage or injection in the economy? I'm confused.

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    If 100 mg of a 1:10 trituration of mechlorethamine hydrochloride are diluted to 10 mL with water for injection, how many milliliters of the injection should be administered to a 132-lb. patient if the dose of mechlorethamide is 0.1 mg/kg?  

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  • 9How is the price of living CPI calculated and could this be used to determine inflation for a given year

    How is the price of living CPI calculated and could this be used to determine inflation for a given year?

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  • 11past inflation determining expectations regarding future inflation

    Past inflation determines expectations about future inflation according to which theory?A) Adaptive ExpectationsB) Asymmetric Expectations

  • 12Leakage vs injections

    The economy will contract (shrink) if leakages exceed injections. Do you agree with this statement? Why or why not?My answer am I close?No I don’t agree with that analysis that the economy will shrink if leakages exceed injections. “According to the video” states that saving (leakage) equals investmentspending so saving may be leakages, but if business use investment spending then the leakages will be Macroeconomic equilibrium. So what leaks out will ineviable bereturned by business investment.