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

Author Question: The policy of attempting to obtain a specific low level of inflation over the long run is referred ... (Read 64 times)

Hungry!

  • Hero Member
  • *****
  • Posts: 1,071
on: Jun 30, 2018
The policy of attempting to obtain a specific low level of inflation over the long run is referred to as:
 
  A) inflation targeting. B) the seigniorage policy.
  C) the minimal inflation policy. D) price control.

Question 2

Suppose that C = Ca + 0.6y and a shock decreases Ca by 50 billion. Assuming there is no government involvement, by how much will equilibrium GDP decrease?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

In this case the multiplier is 1/(1 - 0.6 ) = 2.5. So output will fall by 125 billion.


Hungry!

  • Member
  • Posts: 1,071
Reply 2 on: Jun 30, 2018
Wow, this really help

Liamb2179

  • Member
  • Posts: 365
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

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?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

A 19-foot-long blue whale skull in the collections of the Smithsonian Museum of Natural History A 19-foot-long blue whale skull in the collections of the Smithsonian Museum of Natural History
This girl has a long leg cast, which was applied after surgery to correct her clubfoot. This girl has a long leg cast, which was applied after surgery to correct her clubfoot.
(a) The relative age ranges of different dating techniques depend upon the half-life of the system u (a) The relative age ranges of different dating techniques depend upon the half-life of the system u
The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago
Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The
Kyoto Protocol encourages industry to innovate and reduce the level of emissions Kyoto Protocol encourages industry to innovate and reduce the level of emissions
Video: Cardiac Cycle (Part 4 of 4)

For a complete list of videos, visit our video library