When supply shifts cause downturn in the economy

Assignment Help Business Economics

Reference no: EM131110407

When supply shifts cause a downturn in the economy:

a. monetary policy is more likely to restore the economy to its pre-recession conditions.

b. inflation is not a concern.

c. the natural rate of unemployment decreases.

d. monetary policy can have no effect on the economy even in the short run.

e. monetary policy is much less likely to restore the economy to its pre-recession conditions.

Reference no: EM131110407

Questions Cloud

How accurate they believe these stereotypes : Survey at least three people you know about stereotypes in their workplace or campus. For example, stereotypes may exist about marketing executives and accountants

What is the real interest rate that herb will in fact pay : There is persistent fear that there will be a high level of deflation. Many economists warn that it may be worse for the economy than if there is high inflation. Let\'s work through one example. What is the real interest rate that Herb expected to p..

Compare budget deficits and surpluses across time : What is the most appropriate way to compare budget deficits/surpluses across time?

Identify three key fact about short-run economic fluctuation : Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run.

When supply shifts cause downturn in the economy : When supply shifts cause a downturn in the economy:

Suppose the exchange rate changes : Suppose the exchange rate changes so that less Japanese yen are required to buy a dollar. We would conclude that a. the Japanese yen has appreciated in value b. U.S citizens will buy fewer Japanese imports c. Japanese will demand more U.S. exports d...

An american colonist of the revolutionary era : Based your reading of McCullough's 1776, put yourself in the mindset of an American Colonist of the Revolutionary Era. How optimistic would you have been that the Patriot forces could have actually won this war? Be sure to support your answer wit..

Suppose that the legal reserve ratio set by the fed : Suppose that the legal reserve ratio set by the Fed is 10% and that the Fair Bank in Fairdealing, Missouri, initially exhibits checkable deposit accounts of $220 and a reserve account of $70. A customer of Fair Bank deposits $100 into her checking ac..

Two constrained optimization problems : Consider the following two constrained optimization problems: Problem 1: max/min xy subject to x^2 + y^2 = 50 Problem 2: max/min xy subject to 2-x-2y = 0 i. Using the Lagrange approach find all critical points and the value of the Lagrange multiplier..

User Account

All Pages