If the inflation rate were to accelerate the economy would, Ask an Expert

Economics

AS/AD diagram for Inflation

Draw an AS/AD diagram illustrating your answer to the statement below. That is, draw an AS/AD diagram which shows what happens if strong growth in AD has pushed actual RGDP to a level above potential (full employment) RGDP. Be sure to label all lines and axes in your diagram clearly.

If the Inflation rate were to accelerate the economy would be flourishing since there is a need for more people to do the work, this means that the wages will go up, and this will cause inflation rates to also increase accordingly.

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9205029

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question draw a long run average cost and marginal cost

Question: Draw a long run average cost and marginal cost curve for a business and explain why they have this shape. - Also on the graph show a P1 that is very profitable for this firm and the Q1 associated with this P1. ...

Question -a if the quantity demanded 600 - 075 p please

Question - A. If the quantity demanded = 600 - 0.75 P, please show your work clearly in estimating the price elasticity of demand at a price of $220. Is demand elastic or inelastic at this price? B. If the quantity deman ...

Question when other firms reactsuppose you are the

Question: When other firms react Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level. You recently learned th ...

Question suppose there are two consumers labeled 1 and 2

Question: Suppose there are two consumers, labeled 1 and 2, each of whom has a dollar of money income which can be spent on either private good x or public good g. Assume that the dollar cannot be divided between the two ...

Question - in this question i will guide you through a

Question - In this question, I will guide you through a simple AK model. The so-called AK model is a special case of the Solow Model. The production function is simply Y = AK so 1/3 for capital in the last question becom ...

Question the competitive nature of the market influences

Question: The Competitive nature of the market influences labor markets outcomes. Explain and show graphically why a firm with monopoly power hires less labor than a firm hiring labor is a competitive market. Explain and ...

Question - a student buys a used car for 3000 with no money

Question - A student buys a used car for $3000 with no money down. She pays for the car in 30 equal monthly payments with interest at 12% per year compounded monthly. a. What is the monthly loan payment? b. What is the t ...

Question - a study was conducted to determine how people

Question - A study was conducted to determine how people get jobs. Four hundred subjects were randomly selected and the following are the results: Job Source of Survey Respondents Frequency Newspaper want ads 69 Online s ...

Question - a relatively new aspect to the marketplaces of a

Question - A relatively new aspect to the marketplaces of a number of cities worldwide is something called the sharing economy, in which people rent assets such as cars and rooms directly from each other. Also called a p ...

Question develop a 12-slide microsoftreg powerpointreg

Question: Develop a 12-slide Microsoft® PowerPoint® presentation including detailed speaker notes or voiceover including the following: Describe the intervention and detail its history. Analyze the arguments for governme ...

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