ASSIGNMENT

• Recognize fiscal policy as an important tool of government intervention in a market economy.
• Recognize monetary policy as an important tool of government intervention in a market economy.
• Evaluate effects of changes in a tax policy.

12.2 Action Required:

Watch the video using the following link:

(908) Introduction to inflation | Inflation – measuring the cost of living | Macroeconomics | Khan Academy – YouTube

12.3 Test your Knowledge (Question):

Explain inflation. Is zero inflation good target?