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Essay Key Types of Inflation and the Social Implications

Instructions
For this assignment, address all of the following parts:

·    Part A. Describe a hypothetical situation where either demand-pull or cost-push inflation occurs, addressing how the situation affects either the AD or AS curve, as well as the implications for prices and the overall effect on the economy. (Think about the circular flow model to help answer this question). You may include a graph to help illustrate your point.

·    Part B. Pick one of the populations listed and describe how inflation impacts this population in your example. Are their lives improved, about the same, or worse off? Describe why.

oUnemployed

oRetired

oHomeowners (mortgage holders and/or people who have paid off their homes)

oYoung families

oWorking poor

oThe rich

·    Part C. What action can society (the government) take to minimize the negative impact on those most affected by the inflationary event? What trade-offs does society have to make? Make sure that your proposal has a reasonable chance of being passed by the country’s elected officials. Please use research to support your response.

Writing Requirements (APA format)

·    Length: 3-5 pages (not including title page, references page, or graphs)

·    1-inch margins

·    Double spaced

·    12-point Times New Roman font

·    Title page

 

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