form.5 經濟問題

Q1)

First, u need to know how to solve inflation....
as value of $ is rising, so to solve it --> reduce the $ supply in the market...for eg. Increase taxes & Reducing Government Spending......

解釋為何在通脹期間香港政府的薪俸稅收通常會增加,
During Inflation --> Increase Taxes --> People's ability to spend decreases
---> Less Demand --> No shortage --> Price level will not rise rapidly
--> Lessen the effects of inflation.

Q2)

As oil is important --> related to many things (consumers and producers) e.g:oil increases the cost of production.

When oil price increases --> Government Reduces taxes --> Firms can save more for investment --> More supply --> No shortage in the market --> Price level stable
.
When taxes decrease --> people can spend lesser on oil --> more net income as the products related to oil decrease.





2011-06-16 22:14:28 補充：
u don't understand? just simple eng~~~~~~~