What Actions Should Be Taken Under the Internal-External Imbalance of Inflation

question 54

Multiple Choice

What actions should be taken under the internal-external imbalance of inflation and surplus?

• A)Expansionary fiscal policy to correct for excess surplus,and expansionary monetary policy to correct for inflation
• B)Expansionary fiscal policy to correct for inflation,and contractionary monetary policy to correct for surplus
• C)Contractionary fiscal policy to correct for inflation,and expansionary monetary policy to correct for surplus
• D)Contractionary fiscal policy to correct for excess surplus,and contractionary monetary policy to correct for inflation

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Definitions:

Economic Rent

Income earned from the possession of a unique asset or advantage not due to individual effort or investment, such as land ownership or patents.

Unearned Surplus

Income derived from investments rather than from work or productive activity.

Henry George

Henry George was an American political economist and journalist who advocated for the "Single Tax" on land, arguing that this would reduce economic inequalities and promote social justice.

Entrepreneur

An individual who starts and runs a business, taking on financial risks in the hope of profit.