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

Author Question: Draw a scatter diagram of the inflation rate and the interest rate. Describe the relationship. ... (Read 15 times)

RYAN BANYAN

  • Hero Member
  • *****
  • Posts: 563
on: Jun 29, 2018
Draw a scatter diagram of the inflation rate and the interest rate. Describe the relationship.
 
  What will be an ideal response?

Question 2

Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?
 
  A) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.
  B) The aggregate demand curve shifts to the right during most periods.
  C) Aggregate demand and potential real GDP decrease continuously.
  D) Potential real GDP increases continuously.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bblaney

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

To make a scatter diagram of the inflation rate and the interest rate, plot the inflation rate on the x-axis and the interest rate on the y-axis. The graph will be a set of dots and is shown in Figure A1.4 . The pattern made by the dots tells us that as the inflation rate increases, the interest rate usually increases so there is a (weak) positive relationship.

Answer to Question 2

C


RYAN BANYAN

  • Member
  • Posts: 563
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Excellent

« previous next »
 

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?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

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?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Relative rate test, calibrating the molecular clock, and calculating divergence dates. Relative rate test, calibrating the molecular clock, and calculating divergence dates.
Anatomy diagram Anatomy diagram
teeth diagram teeth diagram
Lean 6 Sigma - LHM SIPOC Diagram Lean 6 Sigma - LHM SIPOC Diagram
A relationship between folate and B12 metabolism A relationship between folate and B12 metabolism
How to solve rate problems leading to fractional equations (Question 2) How to solve rate problems leading to fractional equations (Question 2)
Video: Definition of heart rate

For a complete list of videos, visit our video library