(Answered) 1 why is it possible to change real economic factors in the

Economics

1) Why is it possible to change real economic factors in the short run simply by printing and distributing more money?

2) Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 17% regularly.

3) Explain the difference between active and passive monetary policy.

4) Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%, Now assume that the central bank unexpectedly decreases the money supply by 6%.

a. Illustrate the short run effects on the macro-economy by using the aggregate supply-aggregate demand model. Be sure to indicate the direction of change in Real GDP, the Price Level and the Unemployment Rate. Label all curves and axis for full credit.

5) Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%. Now assume that the central bank increases the money supply by 6%.

a. Illustrate the short-run effects on the macro-economy by using the aggregate supply-aggregate demand model. Be sure to indicate the direction of change in Real GDP, the Price Level, and the Unemployment Rate. Label all curves and axis for full credit.

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91590848
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question - the question about african economyin no more

Question - The question about African Economy In no more than about half a page to a page each, answer the following questions: What are your preconceptions of Africa? When you think of Africa, what comes to mind? Be spe ...

Introductory macroeconomics assignment -questions1 suppose

Introductory Macroeconomics Assignment - Questions 1. Suppose that the election of a popular candidate suddenly increases people's confidence in the future. Use the model of aggregate demand and aggregate supply to analy ...

Question president trump has proposed a lowering of the

Question: President Trump has proposed a lowering of the corporate income lax rale from 35% to 15% and the top personal income tax rate from 39.6% to 15%. When lie unveiled the tax plan. Treasury Secretary Steven Mnuchin ...

Question - this question is to get some practice drawing

Question - This question is to get some practice drawing budget constraints. You are in your first semester at college and deciding to spend your income between textbooks and food. You have $360 for the month. Textbooks ...

Question assume a nissan dealer in the us bought 30 maximas

Question: Assume a Nissan dealer in the U.S. bought 30 Maximas directly from Japan at a cost of $20,000 per car in the fall of 2002. By December 31, 2002, the dealer had sold 10 of these cars for $27,000 each. The remain ...

Economics assignment -part a microeconomicsconsider the

Economics Assignment - Part A: Microeconomics Consider the following three sources. Source 1. Macquarie Analysis: Woolworths Trails Coles on Grocery Prices (by Catie Low) Source 2: Supermarkets Price War Source 3: Suppor ...

Question - analyze what economists mean when they say that

Question - Analyze what economists mean when they say that monetary policy can exhibit cyclical asymmetry. How does the idea of a liquidity trap relate to cyclical asymmetry? Why is this possibility of a liquidity trap s ...

Question - consider firms in the market for get-rich-quick

Question - Consider firms in the market for get-rich-quick schemes. For this problem, assume get-rich-quick schemes are indivisible (so there can only be 1, 2, 3, etc.). Now, the more schemes there are in the market the ...

Question assume an economy is described by the following

Question: Assume an economy is described by the following economic parameters: C = 0.8YD YD = Y + TR - tY TR = 100 t = 0.3 I = 1000 - 65i G = 600 L = 0.25Y - 75i M/P = 600 What is the equation that describes the IS curve ...

Question the price of cds is 15 and the price of pizzas is

Question: The price of CDs is $15 and the price of pizzas is $10. Derek spends all of his income buying 2 CDs and 6 pizzas per week (and nothing else). Determine Derek's income, draw his budget line and represent his uti ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert