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

Author Question: For this question, assume that expectations of P and A are correct. Now suppose that there is a 1 ... (Read 51 times)

jazziefee

  • Hero Member
  • *****
  • Posts: 505
on: Jun 30, 2018
For this question, assume that expectations of P and A are correct. Now suppose that there is a 1 increase in A. Given this information, which of the following will occur?
 
  A) a 1 increase in the real wage and a reduction in the natural rate of unemployment
  B) a 1 increase in the real wage and no change in the natural rate of unemployment
  C) no change in the real wage and an increase in the natural rate of unemployment
  D) no change in the real wage and a reduction in the natural rate of unemployment

Question 2

In the model discussed in Chapter 3, why do we assume G and T are exogenous?
 
  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

nothere

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

It is based on two arguments: First, government do not behave with the same regularity as consumers or firms, so there is no reliable rule we could write for G or T. Second, treating G and T as exogenous help explore the implications of alternative spending and tax decisions.


jazziefee

  • Member
  • Posts: 505
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Question About Lewis Dot Structures Question About Lewis Dot Structures
Economics question Economics question
math question math question
economic question economic question
economic question economic question
economic question economic question
Video: Chemical Synapse Animation

For a complete list of videos, visit our video library