Question
State and explain whether you AGREE or DISAGREE with the following statements. (NO EXPLANATIONS NO POINTS) a. To decrease inflation we have to accept higher
Stateandexplainwhether you AGREE or DISAGREE with the following statements. (NO EXPLANATIONS NO POINTS)
a. To decrease inflation we have to accept higher unemployment rates in the short-run but there is no link between unemployment rate and inflation rate in the long-run.
b. To close a deflationary gap of 50 billion TL either government expenditure should be increased by 50 billion TL. or taxes should be decreased by 50 billion TL.
c. Assuming that poor people spend a higher percentage of their income than rich people, if income is redistributed from poor people to rich people, theAggregate Demand(AD) curve will shift to the left.
d. If productivity rises 3 percent and wages rise 1 percent, then Short-run Aggregate Supply (SAS) will shift down.
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