Short-run aggregate supply curve when budget deficits rise

Assignment Help Business Economics

Reference no: EM13981092

a) If large budget deficits cause the public to think there will be higher inflation in the future, what is likely to happen to the short-run aggregate supply curve when budget deficits rise? Why?

b) If the dollar decreases in value relative to foreign currencies so that foreign goods become more expensive in the U.S., what will happen to the position of the (Keynesian) aggregate demand curve?

Reference no: EM13981092

Questions Cloud

What conclusions can you reach concerning how people scan : What conclusions can you reach concerning how people scan Internet search results? Which graphical method do you think is best to portray these data?

How the use of force continuum works : Start with what force is, how the use of force continuum works, what are the perceptions of the use of force by the public and how does the media play a role.

Federal reserve increase or decrease nominal money supply : Between 1979 and 1981, the Federal Reserve sharply increased its target for the Federal Funds interest rate. This move was followed by an increase in the unemployment rate. To achieve an increase in the interest rate target, would the Federal Reserve..

How would you prepare to become a law enforcement officer : What are the typical steps or procedures in becoming a law enforcement officer and how did you or would you prepare to become a law enforcement officer?

Short-run aggregate supply curve when budget deficits rise : If large budget deficits cause the public to think there will be higher inflation in the future, what is likely to happen to the short-run aggregate supply curve when budget deficits rise? Why? If the dollar decreases in value relative to foreign cur..

Differences between punishment and logical consequences : Describe the benefits of Logical Consequences, Polite Requests, Mutual Respect, and The Method of Choice. Include examples from the Videos and our Textbooks. Describe the differences between punishment and logical consequences

Use to get a policy like this adopted and implemented : After the horrific terrorist attacks that occurred in the United States on 9/11/2001,a PR firm represented the Allied Pilots Association in that organization's campaign to gain airline pilots the right to carry guns in the cockpit. What type of resea..

Top three areas of concern : Research and discuss the top three areas of concern which can go wrong in a catastrophic event. Explain why you chose these three areas. Describe the consequence that each of these problems has on a disaster recovery effort.

Affect the aggregate demand curve-as well as real interest : Once the crowding-out effect is accounted for, how will the following events affect the aggregate demand curve, as well as real interest rates? Use a Keynesian perspective. The Federal Reserve issues new discount loans.

User Account

All Pages