Use a 2-bloc model to explain in words how can be constant inflation in each bloc but current account imbalances?
In 2 bloc model let there be two blocs namely A and B representation of countries. Constant inflation in both blocs will certainly lead to increased interest rates by central banks in both the blocs.
Now if interest rate is higher in bloc A than Bloc B, the currency will apprrciate and hence net imports will br greater than exports and causing trade deficit .
On same hand the appreciation of currency in bloc A will lead to depreciation of currency in bloc B. As result thr net exports will be more than net imports in bloc A and consequently the trade surplus will arise.
Thus we can conclude that constant inflation in both blocs causes trade imbalances.
Use a 2-bloc model to explain in words how can be constant inflation in each bloc...
3 2. Use the IS-LM model to show how an expected inflation could result in a higher short-run GDP. Explain using an IS-LM diagram. Make sure you explain in words what happens in your diagram.
1. Use the IS-LM model to show how an unexpected inflation could result in a higher short-run GDP. 2. Use the IS-LM model to show how an expected inflation could result in a higher short-run GDP. Explain using an IS-LM diagram. Make sure you explain in words what happens in your diagram.
1. Use the IS-LM model to show how an unexpected inflation could result in a higher short-run GDP. 2. Use the IS-LM model to show how an expected inflation could result in a higher short-run GDP. Explain using an IS-LM diagram. Make sure you explain in words what happens in your diagram. 3) Suppose a closed economy is initially in the long run equilibrium. Suppose the monetary base of this economy is $100 million, of which people carry $10 million...
- In your OWN WORDS, explain how the use of ecosystem services can be misleading for restoration or conservation. - For each of these points, give an example of where the use of ecosystem services as a measure of success would be misleading.
Define demand-pull inflation. Using the AS/AD model, explain how demand-pull inflation affects the level of aggregate output and the price level in the economy (which curve shifts, in what direction, and what happens to equilibrium output and price level). Give an example of macroeconomic policy that can be used to counter the effects of demand-pull inflation and discuss its effect on the equilibrium output and price level.
question 1list and explain the policy tools the Federal Reserve can use to reduce inflationquestion 2list and explain the fiscal policy tools the government can use to reduce inflation
In your own words, explain the difference between isotopes and biomarkers and how each can be used to identify characteristics of fossils
1. Use the IS-LM model to show how an unexpected inflation could result in a higher short-run GDP.
1. Use the IS-LM model to show how an unexpected inflation could result in a higher short-run GDP.
Inflation started to creep up in the late 1960's. By 1968, inflation was about 4%, and by 1973, inflation was about 6%. By 1980, inflation was at 13.5%. The Fed, led by Chairman Paul Volcker, engineered a recession that eventually disinflated the economy. Using the economic the concepts learned in class, especially the economics fluctuation model, explain how the Fed disinflates the economy from 13.5% to 3.5%, and what the effects of that disinflation are in the SR and the...