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- Since 1970, the United States has experienced 5 periods and 2 periods. O stagflationary, deflationary O inflationary; expansionary O recessionary; inflationary O recessionary; expansionaryWhile hyperinflations are always caused by rapid growth in the money supply, they can be intensified by the actions of households and firms trying to protect themselves from inflation by spending money as soon as they receive it. During a hyperinflation, the velocity of money is likely to Use the quantity equation to show how the change in vel Holding the growth rate of real GDP constant, this chang increase remain unchanged decrease ▼inflation image 1Which of the following is most commonly used to monitor short-run changes in economic activity?a. the inflation rateb. real GDPc. aggregate demandd. aggregate supply
- Stagflation occurs when the economy's are both high. Lütfen birini seçin: O A. unemployment rate and deflation rate O B. inflation rate and growth rate O C inflation rate and interest rate OD unemployment rate and growth rate OE inflation rate and unemployment rateAssume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on:1. aggregate demand, 2. aggregate supply, 3. price level, and 4. real GDP. a) The Central Bank increases the cash interest rate i need ans of this too.Aggregate demand functionwas Y=3300-3P last year, current year it looks likeY=3390-3P. SRAS curve is horizontal. Potential GDP is $3000 bln and it hasn'tchanged.Find out equilibrium GDP in the short-run and inflation rate in the long-run.Using AD-AS model illustrate the task.
- In the United States, nominal interest rates tend to move economy is experiencing Select one: A. procyclically, a recession B. procyclically; an expansion C. countercyclically; an expansion D. countercyclically; a recession nominal interest rates increase. This means that when theThe lowest part of a recession is referred to as its. O a. Peak O b. Depression O. Boom Od. Trough2. Show a AD-AS graph inflation in the short run and the shift in the SAS necessary to eliminate it.
- (52). Listen Keynes believed that the money supply played a minor role, if any, in causing changes in the business cycles. O. True O. FalseWhich of the following is usually the cause of stagflation? rate OA. an increase in investment as a result of a reduction in interest rates OB. a decline in net exports as a result of a change in the exchange OC. a supply shock as a result of an unexpected increase in the price of a natural resource D. a reduction in government purchasesSuppose both nominal GDP rises by 10 percent and real GDP rise by 2percent. What has happened to the general price level? What is the inflationrate? Show your calculation.