This topic contains a solution. Click here to go to the answer

Author Question: The single most important contributor to China's economic growth has been ________. A) ... (Read 53 times)

londonang

  • Hero Member
  • *****
  • Posts: 540
The single most important contributor to China's economic growth has been ________.
 
  A) government-directed credit to key economic sectors
  B) strong demand for China's exports
  C) rapid improvements in worker productivity
  D) a substantial increase in the utilization of labor and capital inputs

Question 2

Suppose the monetary policy curve is r = 5 + 0.8, and the current values for output and inflation are 16.8 and 2 percent, respectively. An increase in global resource prices pushes the inflation rate to 4 percent.
 
  Policy makers estimate that the monetary policy in place, responding to 4 percent inflation, will bring output down to 13.6, a decline considered excessive. Instead, they implement an autonomous easing of monetary policy to lower output from 16.8 to 16. Assuming no change in the slope of the monetary policy curve, determine the new curve.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tkempin

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

D

Answer to Question 2

From the given monetary policy curve, the real interest rate was initially 6.6 percent, and would rise to 8.2 percent in response to the increase in inflation from 2 percent to 4 percent. Since this increase in the real interest rate would cause output to decline from 16.8 to 13.6, we know that the IS curve is Y = 30 - 2r. If output is to be 16, the real interest rate must be 7 percent. The monetary policy curve with slope 0.8 and coordinates 4, 7 is r = 3.8 + 0.8.




londonang

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
:D TYSM


Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

For a complete list of videos, visit our video library