ZuoTi.Pro
Question

1. The long-run model determines determines a. potential output; long-run inflation, current output, current inflation b. potential output; unemployment, current output; long-run inflation c. current output; long-run inflation; unemployment, current inflation d. potential output; unemployment; unemployment, current inflation e. current output: unemployment; potential output; current inflation andwhile the short-run model and , and 2. The IS curve describes short-run movements in an economy via which of the following? ↑Interest rate ↑ Investment → ↓ Output ↑Interest rate → ↓Investment → ↓ Output TTax rate IConsumption JOutput d. 1interestrateInvestmenttOutput b. C. e. 1Tax rate ↑ Government expenditure → ↑Output 3. The IS curve describes the relationship between and a. negative; tax rate; investment b. positive; interest rate; output c. positive; tax rate; government expenditure d. negative; interest rate; output e. negative; interest rate; money supply
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a) The long run model describes "D" potential output and natural rate of unemployment and short run determines inflation and unemployment

b) "B" when interest rate goes Up the investment and the output goes down.

c) negative relation ship between interest rate and output. "D".

0 0
Add a comment
Know the answer?
Add Answer to:
1. The long-run model determines determines a. potential output; long-run inflation, current output, current inflation b....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • output andwhile the short-run model determines 42. The long-run model determines inflation. and potential; long-run inflation;...

    output andwhile the short-run model determines 42. The long-run model determines inflation. and potential; long-run inflation; current output; current a. potential; unemployment; current output; long-run b. current; long-run inflation; unemployment; current d. potential; unemployment; unemployment; current e current; unemployment; potential output; curren 43. In the equation I,/Y, -a, -b(R,-), if b is close to zero, investment is not very sensitive to real interest rate changes. is very sensitive to changes in the marginal product of capital. is very sensitive to...

  • Multiple choice: 1.The long-run model determines ________ output and ________, while the short-run model determines ________...

    Multiple choice: 1.The long-run model determines ________ output and ________, while the short-run model determines ________ and ________ inflation. a. potential; long-run inflation; current output; current b. potential; unemployment; current output; long-run c. current; long-run inflation; unemployment; current d. potential; unemployment; unemployment; current e. current; unemployment; potential output; current 2. The IS curve will shift ____ when government spending increases but will likely have an ambiguous effect if imports ______ at the same time. Moreover, consumption, as well as exports...

  • Part C: Assorted short questions C1. Multiple choice while the short-run C.1.1 The long-run model determines...

    Part C: Assorted short questions C1. Multiple choice while the short-run C.1.1 The long-run model determines output and model determines and inflation, a. potential, long-run inflation, current output; current b. potential, unemployment; current output; long-run c. current; long-run inflation, unemployment; current d. potential; unemployment; unemployment; current e. current, unemployment; potential output; current | СРІ Quarter Sep-2016 Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017 Mar-2018 Jun-2018 Sep-2018 Dec-2018 1 109.4 110.0 110.5 110.7 111.4 112.1 112.6 113.0 113.5 114.1 C.1.2 The table above...

  • Suppose the economy is operating below potential output. Inflation is 2% and expected inflation is 3%....

    Suppose the economy is operating below potential output. Inflation is 2% and expected inflation is 3%. The unemployment rate is 8% and the natural unemployment rate is 4%. 54. iv. Draw a long-run Phillips curve and a short-run Phillips curve consistent with these conditions w. The government implements expansionary monetary policy. As a result, unemployment decreases to 6% and inflation increases to 2.5%. Expectations however. do not change. Show where the economy is on the graph you drew for (a)...

  • Question 9 a) An increase in potential output in the AD-AS supply model will in the...

    Question 9 a) An increase in potential output in the AD-AS supply model will in the long run lead to what? A. None of the other options B. No change in output and an increase in inflation relative to the initial equilibrium C. An increase in output and an increase in inflation relative to the initial equilibrium D. A decrease in output and a decrease in inflation relative to the initial equilibrium b) Consider an AD-AS model with AD curve...

  • E) none of the above un equilibrium occurs les intersect. 26. In the Keynesian model, short-run...

    E) none of the above un equilibrium occurs les intersect. 26. In the Keynesian model, short-run egun A) where the IS and LA curves intersect. Where the IS curve. Meurve. and FE lines inters C) where the IS curve intersects the FB fine. D) where the LM curve intersects the Fence he money supply will cause 27 In the Keynesian model in the short A) a decrease in output and an increase in the real B) an increase in the...

  • Consider the relationship between inflation, output, and unemployment. Think about the economy in the long run....

    Consider the relationship between inflation, output, and unemployment. Think about the economy in the long run. In the long run, what determines unemployment? (2 points) In the long run, what determines output (GDP)? (2 points) In the long run, what determines inflation? (2 points) In the long run, is there a tradeoff between inflation and unemployment? Explain why or why not (3 points).

  • According to the Fisher equation, the real interest rate is given by a zero. b. the...

    According to the Fisher equation, the real interest rate is given by a zero. b. the nominal interest rate plus the rate of inflation c. the nominal interest rate minus the rate of unemployment. d. the rate of economic growth. e. the nominal interest rate minus the rate of inflation An implication of sticky inflation is that, through monetary policy changes, the Federal Reserve a. has no impact on inflation b. can alter the real interest rate in the long...

  • Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation + 0.2 -...

    Suppose the short run Phillips Curve is given by: Inflation = Expected Inflation + 0.2 - 4*Unemployment Rate Assume that initially, people expect zero inflation. a)Draw the short run Phillips Curve and the long run Phillips Curve on a graph b)On the graph, represent what would happen in the short run if the government decided to run 4% inflation (setting inflation =0.04). c)On the graph, represent what would happen in the long run if the government decided to run 4%...

  • 1. IS-MP-AD-IA model. In December 2017, the U.S. President and Congress passed a substantial decrease in...

    1. IS-MP-AD-IA model. In December 2017, the U.S. President and Congress passed a substantial decrease in taxes. Assume that the U.S. economy starts out at potential output at the end of 2017 a) What is the effect of the tax cut on the IS and MP curves in the short run? b) According to the IS-MP model, what would happen to output and the real interest rate in c) What would happen to the AD and IA curves in the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT