Demonstrate graphically the economic circumstances

Assignment Help Business Management
Reference no: EM131491726

Please thoroughly explain answer to these questions using explanation/graphs/charts as necessary. 

The target inflation is 2% when the economy is producing at potential output, unemployment is 5.5%. Suppose realized unemployment is 32% and inflation is -10%. 

a) Use the model of aggregate demand/supply to demonstrate graphically the economic circumstances. Label all axes, and indicate the short run equilibrium. What might have changed to move the economy from the long run equilibrium?

B. Explain how the economy would self-correct. Show this adjustment on a new graph. What would be the rate of inflation (relative to (a)) in the long run? 

C. How could the government use macroeconomic stabilization policy to shorten the business cycle? Explain and show this with a third graph. What would inflation be in the long-run (relative to (a)) in this scenario?

D. In this case, what sorts of policies are likely to be most effective.

Reference no: EM131491726

Questions Cloud

Early childhood educator and colleague : Explain how your knowledge and understanding of these values will help to make you a better early childhood educator and colleague.
Explain the term pump capacity : Explain the term pump capacity. Explain why a positive displacement pump should not be run against a closed system and why a centrifugal pump can be
How does a switch provide a link with minimal collisions : What command is used on a computer to view the contents of the ARP cache? An empty ARP cache indicates what?
Describe which of the dispositions from your target : Describe which of the dispositions from your target you already exhibit on a regular basis. Also, discuss which dispositions are still emerging for you.
Demonstrate graphically the economic circumstances : Use the model of aggregate demand/supply to demonstrate graphically the economic circumstances. Label all axes, and indicate the short run equilibrium.
Dividend vs non-dividend : Dividend-paying firms are different than non-dividend-paying firms. Explore and discuss how dividend payments are accounted for?
Government money market fund and general fund : What is the difference between a taxable government money market fund and a general fund?
Earnings and dividends to grow at rate : Financial analysts expect Theron Co.'s earnings and dividends to grow at a rate of 16 percent during the next three years, 12 percent in the fourth and fifth ye
Equity securities : Equity Securities On January 1 you buy a stock priced at $72 per share. At the end of the year you sell the stock for $65.95.

Reviews

Write a Review

Business Management Questions & Answers

  Determine various organizational diagnosis od models and

determine various organizational diagnosis od models and open systems theory and determine the best one to use for

  Explain what you agreed with and what you disagreed with

In this paper I would like your candid reaction to what the author of this book presents. Explain what you agreed with and/or what you disagreed with.

  Understanding and identification of relevant issues of case

Advise Mary whether there are any terms of the parking contract that have been breached by Queens Parking Ltd under the common law of contract and/or statute.

  Indifference curves are smooth and convex

David purchases two goods: bananas (x) and tea (y). Her indifference curves are smooth and convex. Suppose the price of tea decreases. On a graph, illustrate the income and substitution effects of the price change on Diana's optimal consumption bu..

  Whether employer has absolute right to close part of busines

On review by the U.S. Supreme Court, how should the Court rule on the question of whether an employer has the absolute right to close part of a business, no matter what the reason? Why?

  Creating organizational alignment

Creating organizational alignment - Explain what role do departments, such as marketing, human resources, and operations management,

  Usplabs recalls oxyelite pro supplements

Review the article "USPlabs Recalls OxyElite Pro Supplements Amid Links to Liver Illness" which can be found in your weekly reading. This article pertains to a recall of a popular health supplement.

  Evaluate different aspects of organizational change

All sources used must be referenced; paraphrased and quoted material must have accompanying citations in APA format.

  After finding inappropriate behaviours on an employee''s

After finding inappropriate behaviours on an employee's Facebook an employer obvious to fire the employee. The employee Facebook is the main reason why she was fire. what is your reaction?

  Organizational psychologyexamine the field of

organizational psychologyexamine the field of organizational psychology. in your examination be sure to address the

  Scientific taxonomy and earth biodiversity pape

Mammals:  To be classified as a mammal an animal must have hair, be warm-blooded, and nourish their young with mike produced by the mother. I chose whales and dolphins for my two mammals. Whales share the uniqueness of having the largest living ma..

  Criteria for recruiting a managerscenarioyou are the

criteria for recruiting a managerscenarioyou are the recruiting manager for a new organization that is working on

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd