Figure 1219: Change in Inflation $\Delta$ $\pi$ ): 2007-2012
-Consider Figure 12

question 38

Essay

Figure 12.19: Change in Inflation ( $\Delta$ $\pi$ ): 2007-2012
-Consider Figure 12.19, which shows the change in inflation from 2007.08-2012.05. If you are Ben Bernanke, Fed chairman, during this period, what is your primary concern during the period, roughly, 2008.08-2009.12? What would you do to remedy this situation? What curve are you likely to consider when you make your policy decision?

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Definitions:

Economic Nation

A collective term referring to a country or state and its economic activities, system, and performance.

United States Depression

A period of severe economic downturn and high unemployment in the United States, with the most famous being the Great Depression of the 1930s.

Output

Output refers to the total quantity of goods or services produced by a firm, industry, or economy within a given period.

Roaring Twenties

A period in the 1920s characterized by rapid economic growth, technological innovation, and cultural shifts in the United States and Europe, often associated with prosperity and social change.