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September 9, 2022

Key Types of Inflation and the Social Implications

ECON312N Principles of Economics

Week 6 Assignment

Essay – Key Types of Inflation and the Social Implications

Resources

Read/review the following resources for this activity:

Textbook: Chapter 22, 24

Lesson

Minimum of 2 scholarly sources

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.

Unemployed

Retired

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

Young families

Working poor

The 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

References page (minimum of 2 sources)

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