Inflation and GDP Essay Example | Topics and Well Written Essays - 2000 words

Inflation and GDP - Essay Example The chart above demonstrates the Phillips curve, if we assume that the economy unemployment level is at point 0 and that the inflation level is at point x then if inflation increases to point A then the level of unemployment will reduce from point 0 to point 1. if inflation is at point x and inflation is reduced to point B then the level of unemployment will increase from point 0 to 2. Therefore the cost of reducing inflation is increased unemployment. Inflation is the persistent rise in price in an economy over a long period of time, there are two forms of inflation which include cost push inflation and demand pull inflation. Demand pull inflation is as a result of increased demand that exceeds the supply level, when demand increases and supply remains constant then price of the good rises and this is what refered to as demand pull inflation. Cost push inflation results from a number of interactions in the economy, this type of inflation is related to wage rates and the increased cost of production which results into an increase in price of goods. In an economy cost push inflation occurs where workers demand for higher wage rates, when wage rates are increased the cost of production increases. When the cost of production increases then the price of goods increase leading to inflation. When the price of goods increase consumers who are the workers experience a reduction in their real income and therefore demand for higher pay and the cycle continues, however there are other factors that may lead to inflation example increased money supply, increased government expenditure and reduced borrowing rates, inflation can therefore be reduced by reducing government expenditure, reducing money supply and increasing borrowing rates or interest rates. Long run and the short run Phillips curve: Due to rational expectations in the economy the short run and long run Phillips curve differ, the long run Phillips curve is drawn as a vertical line, this concept is due to the natural rate of unemployment that prevails in the economy, when individuals in the economy rational expectations that inflation will increase then the inflation level will be higher than the expected inflation level, diagram below shows the long run and the short run Phillips curve. The chart above shows the long run and short run Phillips curves, if the economy starts at short run Phillips curve 1 and individuals in the economy have rational expectations that inflation will rise, then inflation will rise but the rational expectations will increase inflation to higher level at the same unemployment level and this will lead to a shift in the short run Phillips curve to short run Phillips curve 2, the point market b on the above diagram shows the non accelerated rate of unemploym

A history of multicultural America. Questions and answers Essay

A history of multicultural America. Questions and answers - Essay Example The original servants in the Virginia Colony were indentured African servants and indentured White servants who came to the colony intentionally for earning money. However, the African servants that came to the colony were war captives or from enemy tribes (Takaki). Question 2: What is the difference between being an indentured servant and being a slave? Indentured servants were quite different from slaves as they were paid for their work and they worked as free workers bound under some agreement between them and the company for an agreed time period. The slaves were deprived of any rights and salary that were approved for indentured servants (Takaki). Question 3: What angered black American soldiers about the roles that were assigned to them during WWII? During WWII, the Black American soldiers were assigned different roles as compared to White American soldiers, which angered them. The roles were related to labor and non-combating positions. They were regarded unfit for combating due to which, they were assigned labor roles and other odd jobs to perform. Considering discrimination and inequality, they were angered. Even after the war, their testimonies were not collected as they were recorded from White soldiers (Takaki). Question 4: What was the major result of Bacon's Rebellion for blacks? The major result of Bacon’s Rebellion for blacks was increase in black slavery as the farm owners in fear of another rebellion and its aftereffects, started investing in acquiring slaves in place of indentured servants to get rid of any similar issue at all. They turned to Africa for slaves who became their primary source of labor (Takaki). Question 5: What was Thomas Jefferson's attitude toward slavery? How did he treat his own slaves? W hat did he believe should happen to blacks if they were freed from slavery? Jefferson’s attitude towards slavery was incongruous as condemned slavery openly and also had hundreds of slaves working on his plantation. He became the richest person on his land based on the expansion of his cultivated land, buying, and selling of slaves. He had appointed overseers for observing the slaves, their work, and these overseers were allowed to make use of physical violence for making them work. His treatment was cruel that can be noticed in his treatment of Hubbard, his slave who tried to escape. According to Jefferson, black slaves would not be able to feed themselves and take care of themselves if they were freed. He also proposed of deporting the blacks back to Africa after freeing them from slavery considering them inappropriate as free citizens in a White man’s society. Jefferson regarded blacks inferior to white population (Takaki). Question 6: Who was Phillis Wheatley, and what were the arguments that she put forward about blacks and slavery? Phillis Wheatley was a female poet and she was a slave brought from Africa. She had her own experience of ‘slave trade’, ‘forced separation from parents’ and ‘bondage in America’. She regarded slavery as a tyrannical institution depriving blacks of their rights and lives. She emphasized equality of blacks and informed that blacks were religiously equal to whites (Takaki). Question 7: Who was Benjamin Banneker? What stereotype about blacks did he work to dispel? What were his arguments? Benjamin Banneker was a black mathematician. He was also a slave like Wheatley. He dismissed Jefferson’s views about inferiority of intellect in blacks. He dispelled the stereotype about blacks that they were intellectually inferior to whites. He regarded Jefferson as a hypocrite. Banneker explained liberty as a ‘natural right’ for blacks. He talked about abolition of slave ry. He rejected the very notion of black inferiority (Takaki). Question 8: What were some of the ways slaves were managed by their masters? Overseers were appointed for black slaves that supervised them for work and threatened people for working by