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 87 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
Excellent

laurnthompson

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

The central dogma of genetics at the molecular level. The central dogma of genetics at the molecular level.
The Hippocampal Formation and Long-Term Potentiation The Hippocampal Formation and Long-Term Potentiation
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
Some vehicles use a surge tank, which is located at the highest level of the cooling system, with ... Some vehicles use a surge tank, which is located at the highest level of the cooling system, with ...
Site-specific recombination event catalyzed by RAG1 and RAG2 Site-specific recombination event catalyzed by RAG1 and RAG2
Rising sea level threatens coastal communities around the world Rising sea level threatens coastal communities around the world
Video: HIV replication/ Replication cycle of HIV

For a complete list of videos, visit our video library