This topic contains a solution. Click here to go to the answer

Author Question: How can the long-run equilibrium level of real Gross Domestic Product (GDP) increase without the ... (Read 94 times)

futuristic

  • Hero Member
  • *****
  • Posts: 638
How can the long-run equilibrium level of real Gross Domestic Product (GDP) increase without the price level changing?
 
  What will be an ideal response?

Question 2

In order to ________ the long-run real interest rate, the Fed needs to ________.
 
  A) raise; raise the long-run inflation expectations B) raise; lower the long-run nominal interest rate
  C) lower; raise the long-run nominal interest rate D) lower; raise the long-run inflation expectations



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jharrington11

  • Sr. Member
  • ****
  • Posts: 365
Answer to Question 1

Since the long-run aggregate supply curve is vertical, the only way real Gross Domestic Product (GDP) can increase without the price level changing is if aggregate demand increases and long-run aggregate supply increases. For the latter to happen, either the endowment of inputs must increase or technology must change.

Answer to Question 2

D




futuristic

  • Member
  • Posts: 638
Reply 2 on: Jun 30, 2018
Wow, this really help


ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

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

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

For a complete list of videos, visit our video library