Question phillips curve a if the equation for a countrys, Ask an Expert

Economics

Question: Phillips Curve: a) If the equation for a country's Phillips curve is p = 0.03 - 0.25(u - 0.05), where p is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 4 percent (0.04)?

b)Assume that an economy has the Phillips curve p = p - 1 - 0.25(u - 0.05). How many percentage point-years of cyclical unemployment are needed to reduce inflation by 5 percentage points?

c) Describe the difference in assumptions between Adaptive Expectations and Rational Expectation? How does this difference impact the Federal Reserve Bank's ability to reduce inflation?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92599224

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question an economic consultant studies the labor policies

Question: An economic consultant studies the labor policies of a firm where it is difficult to monitor workers and prepares a report in which she recommends that the firm raise employee wages. At a meeting of the firm's ...

Question answer all of the bulleted question related to the

Question: Answer all of the bulleted question related to the esay question on the the goverment budget. It's ok to use the outside source for the question, but please cite the source properly. ( write about one or two pa ...

Question consider a monopoly with a horizontal marginal

Question: Consider a monopoly with a horizontal marginal cost schedule. If a tax t is imposed on the monopolist, show that: (a) Price increases by exactly half the tax if the monopolist faces a linear demand curve p = a ...

Question economic homework please help1 identify and

Question: Economic homework, please help 1. Identify and explain the positive attributes and negative consequences of Neoliberalism for women in developing countries (a.k.a. Third World countries or the Global South). (A ...

Question look at exercise compute the opportunity costs of

Question: Look at Exercise. Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowest opportunity cost of producing sweaters and who has the lowest opportunity cost of pr ...

Question shortly before the uk devalued the pound sterling

Question: Shortly before the UK devalued the pound sterling in 1968, Prime Minister Harold Wilson was heard to remark that the first time a Labour prime minister devalued the pound, the party was out of power for 14 year ...

Question three firms are considering entering a new market

Question: Three firms are considering entering a new market. The payoff for each firm that enters is 150/n, where n is the number of firms that enter. The cost of entering is 62. Find all the pure-strategy Nash equilibri ...

Question support you are the chair of feds board of

Question: Support you are the chair of Fed's Board of Governors at a time when the economy is heading into a recession and you are called to testify before a before a congressional committee. Write your explanation to an ...

Question describe your recommendations concerning the

Question: Describe your recommendations concerning the issues presented in "Carnival". The issues of the cruise ship Carnival that is facing today, what would your recommendations be? The response must be typed, single s ...

Question the northern community of assiniboine narrows has

Question: The northern community of Assiniboine Narrows has a population of 12,000. It has one medical clinic with three doctors, each working 40 hours per week. Each doctor sees four patients per hour. The clinic would ...

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 Microeconomics Expert