Question 1

Answer the questions based on the following diagram.

Accepted Answer

@#IMG-DLM& 
(a)Assume the economy is initially at

Question 2

If the long-run supply curve is fixed in place,can there be persistent inflation?

Accepted Answer

No there cannot be persistent inflation.

Question 3

What is the basic difference between the short run and long run as these terms relate to macroeconomics? Why does this difference occur?

Accepted Answer

The short run is a period in which nomin

Question 4

(a)Using a graph showing aggregate demand,short-run aggregate supply,and long-run aggregate supply,illustrate an economy that faces an inflationary gap.

Accepted Answer

@#IMG-DLM& 
(b)Explain how the inflationary gap ca

Question 5

Compare and contrast the short-run Phillips Curve and the long-run Phillips Curve.

Accepted Answer

In the short-run,an expansion of aggrega

Question 6

Why is the difference between the actual and expected rates of inflation important for explaining falling inflation?

Accepted Answer

When the actual rate of inflation is low

Question 7

What contributed to stagflation's demise between 1982 and 1989? How did these events affect aggregate supply and the Phillips Curve?

Accepted Answer

There was a deep recession from 1981 to

Answer the questions based on the following diagram.

If the long-run supply curve is fixed in place,can there be persistent inflation?

What is the basic difference between the short run and long run as these terms relate to macroeconomics? Why does this difference occur?

(a)Using a graph showing aggregate demand,short-run aggregate supply,and long-run aggregate supply,illustrate an economy that faces an inflationary gap.

Compare and contrast the short-run Phillips Curve and the long-run Phillips Curve.

Why is the difference between the actual and expected rates of inflation important for explaining falling inflation?

What contributed to stagflation's demise between 1982 and 1989? How did these events affect aggregate supply and the Phillips Curve?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

An Introduction to Macroeconomics

Measuring the Economys Output

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, Surpluses, and Debt

Money, Banking, and Money Creation

Interest Rates and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 16: Long-Run Macroeconomic Adjustments

Answer the questions based on the following diagram.

If the long-run supply curve is fixed in place,can there be persistent inflation?

What is the basic difference between the short run and long run as these terms relate to macroeconomics? Why does this difference occur?

(a)Using a graph showing aggregate demand,short-run aggregate supply,and long-run aggregate supply,illustrate an economy that faces an inflationary gap.

Compare and contrast the short-run Phillips Curve and the long-run Phillips Curve.

Why is the difference between the actual and expected rates of inflation important for explaining falling inflation?

What contributed to stagflation's demise between 1982 and 1989? How did these events affect aggregate supply and the Phillips Curve?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

An Introduction to Macroeconomics

Measuring the Economys Output

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, Surpluses, and Debt

Money, Banking, and Money Creation

Interest Rates and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Filters