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)
Scholarly source – per APA Guidelines, only scholarly sources should be used in assignments. These include peer-reviewed publications, government reports, or sources written by a professional or scholar in the field. Wikipedia, Wikis, .com websites or blogs should not be used as anyone can add information to these sites. For the discussions, reputable internet sources such as websites by government agencies (.gov) and respected organizations (.org) can be counted as scholarly sources. Outside sources do not include assigned required readings.
