« previous next »

Author Question: In the new Keynesian model, a positive, permanent supply shock will result in ________. A) an ... (Read 70 times)

dejastew

  • Hero Member
  • *****
  • Posts: 562
on: Jun 30, 2018
In the new Keynesian model, a positive, permanent supply shock will result in ________.
 
  A) an increase in aggregate demand
  B) a decrease in aggregate demand
  C) no change in aggregate demand
  D) a change in aggregate demand, only if the shock is anticipated

Question 2

Including investment and production in the two-good, two-period model with trade
 
  A) allows the country to equalize absorption and output demand.
  B) renders terms of trade endogenous.
  C) allows the country to react to changes in the interest rate.
  D) allows the government to run budget deficits.


Jody Vaughn

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

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?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

brain model brain model
SDS PAGE Result SDS PAGE Result
Original Model of Jupiter’s Belts and Zones Original Model of Jupiter’s Belts and Zones
Shope’s Model of Young Driver Crash Risks The model shows that many factors contribute to crash ris Shope’s Model of Young Driver Crash Risks The model shows that many factors contribute to crash ris
A summary model of the regulation of gonadal hormones. A summary model of the regulation of gonadal hormones.
Positive ring precipitin test. Positive ring precipitin test.
Video: Bulk flow - factors that influence bulk flow

For a complete list of videos, visit our video library