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 52 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
Thanks for the timely response, appreciate it


essyface1

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

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

For a complete list of videos, visit our video library