Explain how an economic populist regime usually progresses

What will be an ideal response?


Early in the populist regime, there is a vindication of the policies of reactivating, redistributing, and restructuring. The economic stimulus of government expenditures and newly created money leads rising growth rates and rising wages. Soon, however, bottlenecks begin to appear. Prices begin to rise, and the budget deficit grows. In the next stage, inflation begins an extreme acceleration, and shortages become pervasive throughout the economy. The budget falls into serious deficit as policies become unsustainable, and wage increases cease keeping up with inflation. In the final stage, countries experience massive capital flight as fears of a devaluation develop. The flight of capital out of the country depresses investment and further depresses real wages. In the end, real wages are often lower than before the cycle began.

Economics

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Caroline tells her friend Octavia to keep searching for a job because there are plenty of jobs in the area for which she is qualified. This advice is most appropriate for which of the following types of unemployment?

A) structural unemployment B) frictional unemployment C) cyclical unemployment D) seasonal unemployment

Economics

Suppose a tax is imposed on producers of aluminum as a means of internalizing the externality associated with aluminum production. If the tax accurately reflects the external costs of pollutants released into the atmosphere, then the new supply curve for aluminum coincides with which other curve?

Economics

Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.

A. 30 cars B. 10,000 pounds of cheese and 30 cars C. 5,000 pounds of cheese and 20 cars D. 10,000 pounds of cheese

Economics

By the property of "more is better," the consumer views the products under consideration as:

A. bads. B. goods. C. normal. D. inferior goods.

Economics