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 83 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
Great answer, keep it coming :)


bulacsom

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

For a complete list of videos, visit our video library