Principles of Macro. (Looseleaf)-With Access (Custom)
11th Edition
ISBN: 9781269334082
Author: CASE
Publisher: PEARSON
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Chapter 13, Problem 14P
To determine
Identify the effect of inflation in short run.
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Students have asked these similar questions
Which of the following statements is correct?
a.
Inflation and unemployment are negatively related in the short run and in the long run.
b.
In the short run, unemployment and inflation are negatively related. In the long run they are largely unrelated problems.
c.
In the short run, unemployment and inflation are positively related. In the long run they are largely unrelated problems.
d.
Inflation and unemployment are positively related in the short run and in the long run.
In the short run, there is a positive relationship between
A. inflation and unemployment
B. inflation and real GDP
C. the actual price level and aggregate quantity supplied
D. the actual price level and unemployment
E. the actual price level and consumption spending
Why should a business owner be concern with the inflation rate in the Dairy products industry, and how might it have an impact on the Dairy products industry?
Chapter 13 Solutions
Principles of Macro. (Looseleaf)-With Access (Custom)
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- Explain why demand policies can only reduce unemployment below the natural rate in the short-run.arrow_forwardIn the short run, an increase in the unemployment rate is likely to be accompanied byarrow_forwardWhich of the following is likely to occur if an increase in legal immigrants significantly reduces the wages of workers, ceteris paribus? A. Aggregate supply will decrease (shift left). B. Aggregate supply will increase (shift right). C. Aggregate demand will increase (shift right). D. Aggregate demand will decrease (shift left).arrow_forward
- Which of the following is most commonly used to monitor short-run changes in economic activity? Answer the inflation rate real GDP aggregate demand aggregate supplyarrow_forwardAfter an unexpected ________ in the price of oil, the long-run adjustment decreases the price level and ________ the unemployment rate as they return to their original levels. Select one: a. increase; decreases b. decrease; increases c. increase; increases d. decrease; decreases Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardIn the short run, the quantity of output supplied by firms can deviate from the natural level of output if the actual price level deviates from the expected price level in the economy. A number of theories explain reasons why this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will (decrease/not change/increase) , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by (raising/lowering) the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to (fall short of/exceed) the…arrow_forward
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