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Due to historical differences, countries often differ in howquickly a change in actual inflation is incorporated into a changein expected inflation. In a country such as Japan that has had verylittle inflation in recent memory, it will take longer for a changein the actual inflation rate to be reflected in a correspondingchange in the expected inflation rate. In contrast, in a countrysuch as Argentina, one that has recently had very high inflation, achange in the actual inflation rate will immediately be reflectedin a corresponding change in the expected inflation rate. What does this imply about the short run and long-run Phillips curves inthese two types of countries? What does this imply about the effectiveness of monetary and fiscal policy to reduce theunemployment rate?
Draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP.
Starting salaries of economics majors have a mean of $47,000/year with a standard deviation of $8,000. What is the probability that a random sample of 100 majors will have an average salary of more than $50,000 year?
a paper recycling facility is proposed ofr a town. because of the bleaches and other chemicals used in paper recycling, there are concerns about the air and water pollution from the plant. a team of economists has studied the facility. the total b..
Suppose your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs;
We now incur shocks as provided in red font. Solve for a new expression of the consumption function and aggregate expenditure curve, solve for the new equilibrium output and add this new equilibrium point to both of your diagrams (label as point B..
If the cost of a substitute product increases, which of the following is most likely to happen in the market for the product under consideration in the short run.
In this year's SuperBowl, the Green Bay Packers will face the Pittsburgh Steelers in Arlington Texas. Tickets are available on web sites such as StubHub starting at approximately $1,000 per ticket, with prices rising significantly based on seat lo..
Elucidate good or service does the company sell. Is the price elasticity of demand elastic or inelastic for that good or service.
during the last ten years Orlando, Florida grew rapidly, with new jobs luring young people to the area. Despite increases in population and income growth that expanded demand for housing, the price of existing houses barely increased, why
Describe the optimal method for procuring a modest number of standardized inputs that are sold by many firms in the marketplace.
Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is 10 percent. Households deposit $5,000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank..
A change in the real money supply can result either from a change in the nominal money supply though Federal Reserve policy (holding the price level constant) or from a change in the price level (holding the nominal money supply constant).
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