Making as-ad diagram, Explain why would you expect

Making as-ad diagram

Reference no: EM1373738

[1] Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer? Describe your answer.

[2] Draw an AS/AD diagram illustrating your answer to part (A) That is, draw an AS/AD diagram which shows what happens as an economy operates for a sustained time at a level of actual unemployment that is lower than the unemployment level at potential RGDP. Be sure to label all lines and axes in your diagram clearly.

Reference no: EM1373738

Questions Cloud

Calculate the growth rate forecast : The United States Bureau of Census publishes employment statistics and demand forecasts for many occupations.

Fundamentals of public health law : Do you stop your car at the stop sign or just drive through it without stopping and please state your justification and reasoning.

Short and long run objectives of using deficit spending : Suppose that the United States is in the midst of a recession and a new president has just inherited an already large public debt.

Compute marginal physical product of labor schedule : Use the following information for a company's output at various levels of employment (L) to compute:

Making as-ad diagram : Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer and creaste and AS/AD diagram

Price stability and economic effects of taxation : In a certain year the aggregate value demanded at the existing price level consists of $100 billion of use, $40 billion of investment, $10 billion of net exports, and $20 billion of government buy.

Determine best targets for the fed : The Federal Reserve System [Fed] has a huge measure of political independence. The Board of Governors, appointed through the United States president and confirms by the United States Senate, serve fourteen year terms.

Discussion on externalities : Assume the United States government determines that the cigarette smoking creates social expenses not reflected in current price of cigarettes in the market.

Effective performance evaluation program : The focus of the text is development of "3-criteria," successful organizations have in their human resource organization plans: the project of decision rights; an appropriate incentive and rewards system;

User Account

All Pages