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

Author Question: What action should the Fed take if it wants to move from a point on the short-run Phillips curve ... (Read 85 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
What action should the Fed take if it wants to move from a point on the short-run Phillips curve representing low unemployment and high inflation to a point representing higher unemployment and lower inflation?
 
  What will be an ideal response?

Question 2

If technological change occurs in the economy
 
  A) we will move up along the long-run aggregate supply curve.
  B) we will move down along the long-run aggregate supply curve.
  C) the long-run aggregate supply curve will shift to the right.
  D) the long-run aggregate supply curve will shift to the left.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sierrahalpin

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

The Fed would undertake a contractionary monetary policy. This would decrease aggregate demand, causing real GDP and the price level to both decrease. A decrease in real GDP will decrease employment, raising the unemployment rate.

Answer to Question 2

C




Beheh

  • Member
  • Posts: 520
Reply 2 on: Jun 29, 2018
Excellent


kalskdjl1212

  • Member
  • Posts: 353
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...

For a complete list of videos, visit our video library