Public expenditure and inflation
Order ID |
53563633773 |
Type |
Essay |
Writer Level |
Masters |
Style |
APA |
Sources/References |
4 |
Perfect Number of Pages to Order |
5-10 Pages |
Description/Paper Instructions
Public expenditure and inflation: The role of fiscal policy
Fiscal policy refers to the government’s use of taxation, spending, and borrowing to influence the economy. One of the main goals of fiscal policy is to stabilize the economy by promoting growth, reducing unemployment, and controlling inflation. In this context, public expenditure plays a crucial role in the economy, and it can have significant effects on inflation.
Public expenditure refers to the government’s spending on goods and services, as well as transfers to individuals and other entities such as businesses and foreign governments. In general, public expenditure can have both positive and negative effects on the economy, depending on how it is financed and how it is used.
When the government spends money, it injects new money into the economy, which can lead to an increase in aggregate demand. If this increase in demand is not matched by an increase in supply, it can lead to inflation. This is because prices tend to rise when demand outstrips supply, as businesses raise prices to capture the increased demand.
However, public expenditure can also have a positive effect on the economy by promoting growth and reducing unemployment. For example, if the government spends money on infrastructure projects such as roads and bridges, it can create jobs and boost economic activity. This can lead to an increase in supply, which can help to mitigate the inflationary effects of the increased demand.
The role of fiscal policy in managing inflation depends on how the government finances its expenditure. If the government finances its expenditure by borrowing, this can lead to inflation if the borrowing leads to an increase in the money supply. This is because when the government borrows money, it creates new money in the process. This can increase the money supply, leading to an increase in demand and therefore inflation.
However, if the government finances its expenditure through taxation, this can have a deflationary effect on the economy. This is because taxation reduces disposable income and therefore reduces demand. This can help to offset the inflationary effects of the increased demand from public expenditure.
In general, the effectiveness of fiscal policy in managing inflation depends on the specific circumstances of the economy. If the economy is experiencing inflation due to a supply-side shock, such as a sudden increase in oil prices, fiscal policy may be less effective in controlling inflation. In this case, the government may need to rely on monetary policy to control inflation.
On the other hand, if the economy is experiencing demand-pull inflation, fiscal policy can be an effective tool for managing inflation. In this case, the government can use a combination of taxation and expenditure to reduce demand and increase supply. For example, the government can increase taxes on luxury goods, which can reduce demand for these goods and help to control inflation. At the same time, the government can increase spending on infrastructure projects, which can increase supply and help to mitigate the inflationary effects of the increased demand.
In conclusion, public expenditure plays a crucial role in the economy, and it can have significant effects on inflation. Fiscal policy can be an effective tool for managing inflation, depending on how the government finances its expenditure and the specific circumstances of the economy. To be effective, fiscal policy must be carefully tailored to the specific needs of the economy and must take into account both the short-term and long-term effects of public expenditure on inflation and other economic indicators.
Public expenditure and inflation
RUBRIC
QUALITY OF RESPONSE |
NO RESPONSE |
POOR / UNSATISFACTORY |
SATISFACTORY |
GOOD |
EXCELLENT |
Content (worth a maximum of 50% of the total points) |
Zero points: Student failed to submit the final paper. |
20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. |
30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. |
40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. |
50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. |
Use of Sources (worth a maximum of 20% of the total points). |
Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. |
5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. |
10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. |
15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. |
20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. |
Grammar (worth maximum of 20% of total points) |
Zero points: Student failed to submit the final paper. |
5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors |
10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors |
15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. |
20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. |
Structure of the Paper (worth 10% of total points) |
Zero points: Student failed to submit the final paper. |
3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. |
5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper |
7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. |
10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. |
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