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Buy custom The last ten year's price stability recorded

Essay's paper info
Topic: Business
Number of pages / Number of words: 8 / 2120
Essay's paper body

To bring the macro-economic stabilization we need to control inflation as it dismissed the price level stability and that will affect the factors of market and bring the disequilibrium in the economy.

2. An increase in the price level reduces the real money stock.

3. It reduces real balance and raises interest rates and reducing investment, aggregate spending and hence Equilibrium income...


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It reduces real balance and raises interest rates and reducing investment, aggregate spending and hence Equilibrium income.

4. It affects the demand and supply of the market.

5. It has direct effect on the general consumers. When prices are stable or fluctuate within a narrow range, individual's frame expectations about normal prices are based on past experience...


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