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

Author Question: Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. ... (Read 139 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?
 
  What will be an ideal response?

Question 2

Open market operations refer to the buying and selling of ________ by the ________ to control the money supply.
 
  A) Treasury securities; Federal Reserve B) stocks and bonds; Treasury Department
  C) stocks and bonds; Federal Reserve D) Treasury securities; Treasury Department


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dominiqueenicolee

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 29, 2018
Answer to Question 1

Inflation is stable when the unemployment rate is equal to the natural rate of unemployment. Since last year's unemployment rate was equal to the natural rate of unemployment, the inflation rate should not change.

Answer to Question 2

A


pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
:D TYSM

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
Population growth rate % Population growth rate %
Top Eleven Countries in Year 2009 According to Three Different Measures Top Eleven Countries in Year 2009 According to Three Different Measures
Estimated number of new HIV infections per year over time period in Canada Estimated number of new HIV infections per year over time period in Canada
Video: Oral Hygiene & Braces Animation

For a complete list of videos, visit our video library