Suppose that the economy is currently at potential output. Also suppose that you are an economic policy
Question:
Suppose that the economy is currently at potential output. Also suppose that you are an economic policy maker and that a college economics student asks you to rank, if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. How would you rank them and why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
The most preferred shock would be a positive supply shock The economy would have higher aggregate ou...View the full answer
Answered By
WAHIDUL HAQUE
hello,
I'm a professional academic solution provider working as a freelance academic solution provider since 7 years. I have completed numerous projects. Help lots of students to get good marks in their exams and quizzes. I can provide any type of academic help to your homework, classwork etc, if you are a student of Accounting, Finance, Economics, Statistics. I believe in satisfying client by my work quality, rather than making one-time profit. I charge reasonable so that we make good long term relationship. why will you choose me? i am an extremely passionate, boldly honest, ethically driven and pro-active contractor that holds each of my clients in high regards throughout all my business relations. in addition, I'll always make sure that I'm giving my 100% better in every work that will be entrusted to me to be able to produce an outcome that will meet my client's standards. so if you are a student that is now reading my profile and considering me for your academic help. please feel free to look through my working history, feedback and contact me if you see or read something that interests you. I appreciate your time and consideration.
regards
4.90+
233+ Reviews
368+ Question Solved
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
Question Posted:
Students also viewed these Business questions
-
Suppose that the economy is initially in a steady state and that some of the nations capital stock is destroyed because of a natural disaster or a war. (a) Determine the long-run effects of this on...
-
Suppose that the economy is self-regulating, that the price level is 132, that the quantity demanded of Real GDP is $4 trillion, that the quantity supplied of Real GDP in the short run is $3.9...
-
Suppose that the economy is experiencing the short-run equilibrium position depicted at point A in the diagram below. Then the government raises its spending and thereby runs a budget deficit in an...
-
The annual growth rate in EPS is 3%. The P/E ratio is 12x. EPS last year was $1.00. Calculate What should the stock price be in 4 years?
-
Answer the following questions by choosing from the following options: stock price; stock price - exercise price; the greater of zero or stock price - exercise price; the lesser of zero or stock...
-
Use Laplace transforms and nodal analysis to find i1 (t) for t > 0 in the network shown in figure. Assume zero initialconditions. 20 ij(t) 6u(t)V 12u(t) V+ 1H (1+ /2
-
State a conclusion. Exercises 49 refer to the following data: Electric motors are assembled on four different production lines. Random samples of motors are taken from each line and inspected. The...
-
Use the ending balances from Problem 10- 27 to prepare a balance sheet.
-
1. What is machine learning? Provide as much info in your own words(three sentences) 2. Name at least two reasons why businesses are increasingly using machine learning as opposed to 5-10 years ago...
-
A program to simulate the calculation of Fletcher checksum.
-
Explain whether the following government policies affect the aggregate demand curve or the short-run aggregate supply curve and how. a. The government reduces the minimum nominal wage. b. The...
-
Suppose that all households hold all their wealth in assets that automatically rise in value when the aggregate price level rises (an example of this is what is called an inflation-indexed bonda bond...
-
In December 2018, Kraft Heinz Co. (KHC) had 1.22 billion shares outstanding, a share price of $43.04, a book value of debt of $30.87 billion, and cash of $1.13 billion. What was Kraft Heinzs market...
-
The Federal tax payable by Bonita is $8,215.60. Her non-refundable tax credits total $16,201.23. After deducting her non-refundable tax credits,What is the federal tax that Bonita owes ?
-
Quantify the Effects of Managerial Actions on ROPI and Components Rincon Farms Inc. reports the following financial data just prior to its fiscal year ended December 31, 2019 ($ millions). Rincon...
-
10.Carp Co has announced that it will pay an annual dividend equal to 55% of earnings. Its earnings per share is $0.80, and it has ten million shares in issue. The return on equity of Carp Co is 20%...
-
tr P Final. Exam..Calculus. (3) Sec 5 (Calculus 3-Cl * .10 (3 ) 15tan-(-)dzdzdy- 3.77 O 6.77 O 127 O 15.7 O 18.72 J 97 O * .11 (2 ) Activate Win Go to Settings t
-
When a firm is a target of a merger, its stock price usually goes up to a price that is a little lower (which accounts for the probability that the merger may not go through), than the bid price of...
-
Consider a box with a lid 1.5 m wide and 0.70 m long. If the inside of the box is evacuated (i.e., its pressure is zero), how much force is required to open the lid? Could you open the lid?
-
Consider the function f and its graph. a. Estimate the zeros of the area function b. Estimate the points (if any) at which A has a local maximum or minimum. c. Sketch a graph of A, for 0 x 10,...
-
The lucky winner of a lottery was given an option. She could either receive $1 million a year for 20 years, for a total of $20 million, or simply receive $10 million today. Why would anyone take the...
-
In early 2010, one quarter of all U.S. homes were underwater. No, there was not massive flooding across the entire country. The term underwater means that homeowners owed more on their mortgages than...
-
As securitization developed, it allowed financial intermediaries to provide new funds for borrowers to enter the housing market. This led to a rise in the rate of homeownership and was hailed as a...
-
1.Taxpayer, a cash method, calendar year taxpayer, engaged in the following transactions in shares of stock. Consider the amount and character of T's gain or loss in each transaction: (a)T bought 100...
-
where company shows it uneanedd revuene and how it is decribedd in the footnotes?
-
Find Find lim x - sin x limx In x +0x Evaluate fre'dx
Study smarter with the SolutionInn App