Macropoland a country that is a natural gas and oil

Reference no: EM13372127

Macropoland, a country that is a natural gas and oil importer, has a natural rate of unemployment (at the full employment level of GDP) that is about 4.5%, and the long run average rate of inflation over time has been about 2%. However, during the period 1973-1974, the county experienced an inflation rate of about 15% while simultaneously experiencing unemployment of nearly 13%.

At the present time, Macropoland is experiencing very sluggish consumption and investment (a result of a fall in the housing market), and unemployment has again edged up to around 9%. Inflation is very low at 0.4%.

Macropoland has just hired you as their economic advisor. You have a big job ahead of you. Using your knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?

Reference no: EM13372127

Questions Cloud

1discuss the role that discounting plays in a dynamically : 1.discuss the role that discounting plays in a dynamically efficient allocation of non-renewable resource use through

You should write research paper and make a power point to : you should write research paper and make a power point to presentation.topics the following is just a set of

Low income housing or subsidized housing in urban : low income housing or subsidized housing in urban economics.the paper must be atleastten pages longmake sure that you

Students are required to write an essay on a significant : students are required to write an essay on a significant recent economic event or activity.discuss an economic activity

Macropoland a country that is a natural gas and oil : macropoland a country that is a natural gas and oil importer has a natural rate of unemployment at the full employment

The pizza company is considering entering the marketplace : the pizza company is considering entering the marketplace in your community. use the information from the pizza company

Dr fine and dr feelgood are the only two medical doctors : dr. fine and dr. feelgood are the only two medical doctors offering immediate walk-in medical services in the town of

Using the is - mr - pc model starting from medium run : using the is - mr - pc model starting from medium run equilibrium explain the response of the economy to a deflationary

Transverse waves with a speed of 590 ms are to be produced : transverse waves with a speed of 59.0 ms are to be produced on a stretched string. a 4.95-m length of string with a

User Account

All Pages