Answer:
The correct answer is option C.
Explanation:
One of the goals of the federal reserve banks is to have price stability in the economy. Though price stability does not imply zero inflation. A small level of inflation is good for economy as it helps in growth of production.
So in order to acheive the goal of price stability, the rate of inflation should be low such as 1-3% and it should be consistent.
Very high inflation is harmful for the economy as it erodes the real income and wealth. Deflation is also not good for economy as it causes reduction in production and employment
Answer:
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by the government
The government plans the goods and services that a country produces, the quantity in which they are produced, and the price at which they are sold.
Every transaction has a double effect i.e Dr and cr
Answer:
The correct answer is letter "E": all final goods and services produced within a country's borders in a year minus capital consumption allowance.
Explanation:
Net Domestic Product (NDP) is calculated by subtracting depreciation from the Gross Domestic Product (GDP). In other words, NDP measures a country's domestic production during a period minus Capital Consumption Allowance (CCA). When the NDP increases indicate the economy of a country is safe but if it decreases it implies the economy is failing.
