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 73 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
Great answer, keep it coming :)

sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

This diagram shows a cross-section of a solar-type star. This diagram shows a cross-section of a solar-type star.
Schematic Diagram Schematic Diagram
Schematic diagram showing polyclonal response by B cells against linear epitopes. Schematic diagram showing polyclonal response by B cells against linear epitopes.
How to convert units of any rate to another (Part 2) How to convert units of any rate to another (Part 2)
A schematic diagram of the functional cycle of the Na+–K+ pump A schematic diagram of the functional cycle of the Na+–K+ pump
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
Video: Blood Flow Through the Kidneys

For a complete list of videos, visit our video library