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updated 1 year ago
Category: Macroeconomics
Suppose that a fall in consumer spending causes a recession. a. Illustrate the immediate change in the economy using both an aggregate-supply/aggregatedemand diagram and a Phillips-curve diagram.On both graphs, label the initial long-run equilibrium as point A and the resulting short-run equilibrium...
Coursepivot December 17, 2022
Here is a tip: The Phillips curve is a graphical representation showing a negative relation between inflation and unemployment rate. Explanation In the long run, the economy operates at full (View full solution)
updated 10 months ago
Category: Macroeconomics
Lars Svensson, a former Princeton professor and deputy governor of the Swedish central bank, proclaimed that when an economy is at risk of falling into deflation, central bankers should be “responsibly irresponsible” with monetary expansion policies. What does this mean, and how does it relate to th...
Coursepivot May 15, 2023
Here is a tip: Deflation is a phenomenon of persistently decling inflation rates. Explanation In a deflationary situation in the economy, the inflation decreases continuously. Consequently, the real interest rate (View full solution)
Category: Macroeconomics
a long-run equilibrium occurs when long-run aggregate supply and aggregate demand meet. What does having long-run equilibrium indicate about a society? the society is using all of its resources efficiently   which best describes the purpose served by economic models within an economic system? model...
Category: Macroeconomics
scarcity society has limited resources and therefore cannot produce all the goods and services people to wish to have   economics study of how society manages its scarce resources     Ten Principles of Economics 1. People face trade-offs2. The Cost of something is what you give up to get it3. Ratio...
Category: Macroeconomics
The difference between the MPC and the APC is that the MPC is the: change in consumption divided by change in income, whereas the APC is total consumption divided by total income.   The sum of MPC and the MPS must equal 1 because all additional income must be spent or saved.     A downshift of the ...
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