Public spending 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 spending and inflation: A causal relationship
Public spending and inflation have been a topic of much debate in economics for many years. The relationship between these two variables is complex and can vary depending on several factors. However, it is generally accepted that there is a causal relationship between public spending and inflation.
Public spending refers to government spending on goods and services, such as infrastructure, education, health care, and defense. Public spending can be financed through various means, including taxation, borrowing, and printing money. Inflation, on the other hand, is a sustained increase in the general price level of goods and services over time. Inflation can be caused by several factors, including an increase in the money supply, increased demand for goods and services, and supply chain disruptions.
When the government increases its spending, it injects more money into the economy, which can lead to an increase in demand for goods and services. If the supply of goods and services does not increase to meet this demand, prices will rise, leading to inflation. In this way, public spending can cause inflation.
There are several channels through which public spending can cause inflation. First, when the government spends more money, it can increase the money supply. This can lead to a decrease in the value of money, as there is more money in circulation but the same amount of goods and services available. This decrease in the value of money can lead to higher prices and inflation.
Second, when the government spends more money, it can increase demand for goods and services. If the supply of goods and services does not increase to meet this demand, prices will rise. This can lead to inflation.
Third, when the government spends more money, it can lead to higher wages for workers in industries that receive government contracts. These higher wages can lead to higher production costs, which can be passed on to consumers in the form of higher prices.
Fourth, when the government spends more money, it can lead to increased borrowing to finance the spending. This can lead to higher interest rates, which can increase the cost of borrowing for businesses and consumers. Higher borrowing costs can lead to higher prices and inflation.
It is important to note that not all public spending will lead to inflation. If the government spends money on goods and services that increase the supply of goods and services, then inflation may not occur. For example, if the government spends money on infrastructure projects, such as building roads and bridges, this can increase the supply of goods and services and lead to lower prices.
Moreover, the effect of public spending on inflation can depend on the state of the economy. In a recession, when there is excess capacity in the economy, public spending may not lead to inflation as there is spare capacity to meet the increased demand. In contrast, during an economic boom, when the economy is operating close to full capacity, public spending may lead to inflation as there is limited capacity to meet the increased demand.
In conclusion, there is a causal relationship between public spending and inflation. When the government spends more money, it can increase the money supply, increase demand for goods and services, lead to higher production costs, and increase borrowing costs, all of which can lead to inflation. However, the effect of public spending on inflation can vary depending on the type of spending and the state of the economy.
Public spending 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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