+1-415-670-9189
info@expertsmind.com
How could central bank achieve goal in short run
Course:- Macroeconomics
Reference No.:- EM13204781





Assignment Help >> Macroeconomics

An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there. How could the central bank achieve this goal in the short run? What would happen in the long run.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
In an effort to reduce their total costs, many companies are now replacing paychecks with payroll cards, which are stored-value cards onto which the companies can download e
It might be hard to imagine demand for money decreasing --- the idea of anyone wanting less money doesn't sound rational --- but it is absolutely true that the demand curve fo
Globalization and global trade have led to increased competition in world markets and increased allocation of scarce resources. Is it accurate to say that this is contributing
Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change.
ECO 314: Energy and the Environment - What is the equilibrium price and quantity of electricity and what is the change in consumer and producer surplus, relative to the previ
Explain the three types of unemployment and what types of government programs would be most effective in combating each type of unemployment?
Until the early 1990s, the U.S. government emphasized GNP rather than GDP as a measure of economic wellbeing. Which measure should the government prefer if it cares about the
Choose a market for a good in your area that seems to be a perfectly competitive market. Identify the buyers and sellers as well as the goods or services. How closely do real