Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

The Assignment:

“Since November 2011, the Reserve Bank has lowered the cash rate on eight separate occasions from 4.75% to 2.5%. Clearly, the Bank has become far less concerned about inflation and is giving a much greater emphasis to unemployment in its policy reaction function”(South Western Tasmania Weekly News 3 September, 2013)

In the light of the quotation, assume that the economy is in long run equilibrium when the Reserve Bank of Australia decided to raise its inflation target and give greater emphasis to unemployment in its policy reaction function.

Use the aggregate demand - aggregate supply curve framework and the Reserve Bank’s policy reaction function to describe this process and consider the likely consequences for the macro economy in both the short-run and the long run.

That is, describe the effect of this change in policy by the Bank on real GDP, unemployment and the rate of inflation in both the short – run and the long – run.

What will be the effect of this change in policy on both the real and the nominal interest rate in the long – run?

USE NO MORE THAN 1000 WORDS IN TOTAL (EXCLUDING FOOTNOTES, TABLES AND BIBLIOGRAPHY).

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91205

Have any Question? 


Related Questions in Macroeconomics

Please help menbspanswer the followingnbsp question based

Please help me answer the following  question based on the course outline and the text professor required. (around 400 words each question) The phenomenon known as the Industrial Revolution was the culmination of a proce ...

Currency crisis cause and resolutiona number of currency

Currency Crisis: Cause and Resolution A number of currency crises have affected certain countries, which have also resulted in contagion in the sense that the crises affected neighboring countries. In a critical essay, s ...

Do you agree or disagree with one of the following

Do you agree or disagree with one of the following statements (just need to pick one)? Find an article that supports your claim. Summarize the article and write a short paragraph explaining your opinion. There is no righ ...

Discuss this article what brexit means for china more power

Discuss this Article: What Brexit Means for China: More Power, Less Economic Security by Minxin Pei. http://fortune.com/2016/06/27/brexit-china-fallout-economy-politics/ What does it mean to "Discuss"? Offer a considered ...

The moroccan monetary authority is using a heavily managed

The Moroccan monetary authority is using a heavily managed float to keep the dirham at $0.12 per dirham. Under current foreign exchange market conditions, nonofficial supply and demand would clear at $0.15 per dirham. Us ...

Question before 1970 many countries were on the gold

Question: Before 1970, many countries were on the gold standard. Since that time, floating exchange regimes have dominated the global economy. Select a country which now has a floating or a pegged exchange rate. Prior to ...

Macroeconomic assignmentsubmit answers to all the following

Macroeconomic Assignment Submit answers to all the following questions. Be sure to explain your reasoning clearly and fully and use diagrams where appropriate. The questions are applied and analytical. They can only be a ...

Essayi directions please complete a 5-10 essay response the

Essay I. Directions: Please complete a 5-10 essay response the following topic. Do use lecture notes, scholarly books and articles as well as documents for supportive data. What is Marxism? How is it similar as well as d ...

Lab configuring bgp routingobjectivethe overall objective

Lab: Configuring BGP Routing Objective The overall objective of this lab is to configure BGP routing between two routers so that there is a routed BGP network connection between computers in the two LANs. You configure t ...

Contractionary monetary policy is a form of economic policy

Contractionary monetary policy is a form of economic policy used to fight inflation which involves decreasing the money supply in order to increase the cost of borrowing which in turn decreases GDP and dampens. It is a t ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen