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

Author Question: According to real business cycle models, A) the economy is normally at potential GDP. B) ... (Read 57 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
According to real business cycle models,
 
  A) the economy is normally at potential GDP.
  B) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
  C) the long-run Phillips curve is negatively sloped.
  D) the economy is normally operating below the natural rate of unemployment.

Question 2

You agree to lend 1,000 for one year at a nominal interest rate of 10. You anticipate that inflation will be 4 over that year. If inflation is instead 3 over that year, which of the following is true?
 
  A) The person who borrowed the 1,000 will be worse off as a result of the unanticipated decrease in inflation.
  B) The real interest rate you earn on your money will be negative.
  C) The purchasing power of the money that will be repaid to you will be lower than you expected.
  D) The real interest rate you earn on your money is lower than you expected.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kswal303

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


lilldybug07

  • Member
  • Posts: 546
Reply 2 on: Jun 29, 2018
Gracias!

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

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.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

The life cycle of the early diverging moss genus, Sphagnum, illustrating reproductive adaptations th The life cycle of the early diverging moss genus, Sphagnum, illustrating reproductive adaptations th
Three Models for DNA Replication Three Models for DNA Replication
Life-cycle of the Sun; sizes are not drawn to scale Life-cycle of the Sun; sizes are not drawn to scale
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
Models of simple transposition and replicative 3′ transposition Models of simple transposition and replicative 3′ transposition
An Event-Related Potential An Event-Related Potential
Video: Protein digestion - stomach & small intestine

For a complete list of videos, visit our video library