« previous next »

Author Question: Inflation that is caused by an increase in aggregate demand without any change in aggregate supply ... (Read 43 times)

jake

  • Hero Member
  • *****
  • Posts: 538
on: Jun 30, 2018
Inflation that is caused by an increase in aggregate demand without any change in aggregate supply is called
 
  A) demand-push inflation. B) cost-pull inflation.
  C) cost-push inflation. D) demand-pull inflation.

Question 2

What is the Phillips curve? What does the Phillips curve suggest about optimal policy?
 
  What will be an ideal response?


EAN94

  • Sr. Member
  • ****
  • Posts: 307
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The Phillips curve shows a trade-off between unemployment and inflation. With the unemployment rate on the horizontal axis and inflation on the vertical, the Phillips curve is pictured as a downward sloping curve. If the curve is a suitable representation of the economy, in the short run policy makers can choose the combination of inflation and unemployment that they want.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Thinning of eggshells caused by DDT. Thinning of eggshells caused by DDT.
Uticaria, a skin rash caused by type I hypersensitivity. Uticaria, a skin rash caused by type I hypersensitivity.
The change in the net of an irradiance, in Wm-2, at the tropopause The change in the net of an irradiance, in Wm-2, at the tropopause
The ability of a community to cope, adapt to, and mitigate the accelerating impact of climate change The ability of a community to cope, adapt to, and mitigate the accelerating impact of climate change
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
Damage caused by the 1964 earthquake in Alaska Damage caused by the 1964 earthquake in Alaska
Video: Definitions of stroke volume, preload definition & Factors influencing stroke volume

For a complete list of videos, visit our video library