The relationship between public expenditure and inflation in high-income countries
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
The relationship between public expenditure and inflation in high-income countries
Public expenditure and inflation are two of the most significant macroeconomic variables that affect economic growth and development in high-income countries. Public expenditure refers to the spending by the government on goods and services that it provides to its citizens. Inflation, on the other hand, is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of the currency is declining.
In high-income countries, public expenditure is generally higher than in low- and middle-income countries. This is because these countries typically have larger welfare states, providing more extensive social services and safety nets to their citizens. Additionally, high-income countries also have higher levels of infrastructure development, education, and healthcare services, which require substantial public expenditure.
The relationship between public expenditure and inflation is complex and varies depending on several factors. In general, an increase in public expenditure tends to lead to higher inflation. This is because when the government spends more money, it increases demand for goods and services in the economy, leading to an increase in prices. However, this relationship is not always straightforward and can depend on the type of public expenditure and the economic conditions of the country.
One significant factor that affects the relationship between public expenditure and inflation is the state of the economy. In high-income countries, when the economy is operating at or near full employment, an increase in public expenditure can lead to inflation. This is because when the economy is at full employment, an increase in demand for goods and services will lead to a rise in prices as supply is limited. In contrast, when the economy is in a recession, an increase in public expenditure can stimulate economic growth and reduce unemployment, without necessarily leading to inflation.
The type of public expenditure is also a crucial factor in determining the relationship between public expenditure and inflation. For example, if the government spends on productive investments such as infrastructure, research and development, and education, it can lead to higher economic growth and development, without necessarily causing inflation. These types of investments increase the supply of goods and services in the economy, reducing the pressure on prices. However, if the government spends on unproductive investments such as subsidies and transfers, it can lead to inflation without necessarily increasing economic growth.
Additionally, the financing of public expenditure can also affect the relationship between public expenditure and inflation. When the government finances its expenditure through borrowing, it can increase demand for credit in the economy, leading to an increase in interest rates. Higher interest rates can reduce investment and consumption, which can have a deflationary effect, countering the inflationary effect of increased public expenditure.
In conclusion, the relationship between public expenditure and inflation in high-income countries is complex and depends on several factors. In general, an increase in public expenditure tends to lead to higher inflation, but this relationship is not always straightforward and depends on the state of the economy, the type of public expenditure, and the financing of public expenditure. When the government spends on productive investments and finances its expenditure through borrowing, it can increase economic growth and development without necessarily causing inflation.
The relationship between public expenditure and inflation in high-income countries
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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