User Account

All Pages

Inflation in the short-run and the long-run

Assignment Help Business Management
Reference no: EM131861735

Use the AD-AS model to answer this question. For each situation below assume that the AD-AS model is initially in long run equilibrium. Each answer must be supported with a diagram.  

(a) Suppose that the government in this economy goes to war. What do you predict will happen to real GDP and inflation in the short run? Holding everything else constant, what do you predict will happen to real GDP and inflation in the long run? Explain your answer.  

(b) Suppose the government reduces taxes and at the same time a new oilfield has been discovered inthe economy. Holding all else constant what do you predict will happen to real GDP and inflation in the short-run and the long-run. Explain your answer.

Reference no: EM131861735

Questions Cloud

Small company that makes wedding cakes : a) Compute average fixed costs, average variable costs, and the marginal cost of Sarah's bakery. b) If each cake sells for $125, compute Sarah's profit/loss.
How much time will be allocated to each step or task : How much time will be allocated to each step or task? What voting mechanism is most appropriate for the size of the group and the specific stage of the process?
Identify the demand curves for the new drug : Identify the demand curves for the new drug and one brand of the over-the-counter pain relievers in the figure.
How you integrate the findings in your day-to-day functions : As the CEO of an organization, discuss how you would integrate these findings in your day-to-day functions (staffing, training, motivation and communications).
Inflation in the short-run and the long-run : Holding all else constant what do you predict will happen to real GDP and inflation in the short-run and the long-run. Explain your answer.
What is the definition of organization structure : What is the definition of organization structure? Does organization structure appear on the organization chart? Explain.
Labor supply between the wages : Using the midpoint method, the elasticity of Clancy's labor supply between the wages of $40 and $50 per hour is approximately
How regression coefficient on exchange rate variable change : Measuring Changes in Economic Exposure Toyota Motor Corp. measures the sensitivity of its exports to the yen exchange rate (relative to the U.S. dollar).
Probability that the standard deviation for the time : If we randomly select 21 components, what is the probability that the standard deviation for the time of assembly of these units is less than 4.0

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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