This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The policy of attempting to obtain a specific low level of inflation over the long run is referred ... (Read 24 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Jun 30, 2018
The policy of attempting to obtain a specific low level of inflation over the long run is referred to as:
 
  A) inflation targeting. B) the seigniorage policy.
  C) the minimal inflation policy. D) price control.

Question 2

Suppose that C = Ca + 0.6y and a shock decreases Ca by 50 billion. Assuming there is no government involvement, by how much will equilibrium GDP decrease?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

In this case the multiplier is 1/(1 - 0.6 ) = 2.5. So output will fall by 125 billion.


Hungry!

  • Member
  • Posts: 1,071
Reply 2 on: Jun 30, 2018
Gracias!

tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Cellular changes associated with short-term and long-term memory in the sea slug. Cellular changes associated with short-term and long-term memory in the sea slug.
Antibody techniques. The specific reaction of an antibody with its antigen Antibody techniques. The specific reaction of an antibody with its antigen
Time Estimates for Specific Office Procedures Time Estimates for Specific Office Procedures
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Scientific monitoring with environmental policy (SOER) Scientific monitoring with environmental policy (SOER)
International Economics: Theory and Policy (10th Edition) International Economics: Theory and Policy (10th Edition)
Video: Atrophy

For a complete list of videos, visit our video library