Reference no: EM131415661
Assignment
Answer each question with 150 words. Use References and in text citation. You will be pointed if you do not complete this task.
1. List and explain the three reasons the aggregate-demand curve slopes downward
2. Name two macroeconomic variables that decline when the economy goes into a recession
3. What is "natural" about the natural rate of unemployment. Why might the natural rate of unemployment differ across countries?
4. Explain the Origins of the Phillips Curve.
5. Suppose a drought destroys farm crops and drives up the price of food. What is the effect on the short-run trade-off between inflation and unemployment?
6. Why the Aggregate-Supply Curve Slopes Upward in the Short Run?
7. Give an example of a government policy that acts as an automatic stabilizer. Explain why the policy has this effect.
8. We have seen how monetary and fiscal policy can affect the economy's aggregate demand for goods and services. These theoretical insights raise some important policy questions: Should policymakers use these instruments to control aggregate demand and stabilize the economy?
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What is natural about the natural rate of unemployment
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