4. Views on the Long-run Phillips CurveFleur is a macroeconomist who works as a policy maker for a European government. She believes that policy makers can choose from a menu ofinflation and unemployment combinations and that the non-accelerating inflation rate of unemployment (NAIRU) varies over time.What school of thought best matches Fleur's viewpoint?Earlier monetaristNew classical and OECD economistPersistence KeynesianHysteresis KeynesianOld Keynesian

The objective of the question is to identify the economic school of thought that best aligns with…

Answered: 4. Views on the Long-run Phillips Curve…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In what period did the Samuelson-Solow U.S. short-run Phillips curve you've just explored most closely match the data? A. 1930s B. 2000s C. 1960s D. 1940s Screenshot attached thanks!
We have discussed two models that describe the relationship between inflation and economicgrowth. Which of the following is a property of the New Keynesian Model but NOT the RealBusiness Cycle (RBC) Model?a.Monetary policy has no effect on long run economic growth b.Recessions can be caused by a fall in aggregate demand. c.Prices are fully flexible in both the short and long run. d.All the above are properties of the RBC model. e.None of the above are properties of the New Keynesian model.
I'd like help on first 3 subsections
Q : Explain what it means that the phillips curve presents policy makers with a menu of choices?
1
Use the following information to answer the next two questions.. Consider the Phillips curve л₁=₂-E(U-U*) with E-1.2, u*-0.06, and n=0.06. Suppose that up-u". Suppose the current government pressures the RBA to bring the economy to an unemployment rate of 0.04 for the next period. With adaptive expectations, what inflation rate should the RBA target? (enter "x" without the quotes if there is not an inflation rate that can produce the target unemployment.) Report your answer as a decimal fraction up to two decimal points.
I need both answers typing clear urjent no chatgpt i will used 5 upvotes
32 There is a new central bank president who wants low inflation much more than the previous president did. According to the Augmented Phillips Curve Model, in this situation, which of the following would be the most help in keep unemployment from rising in the sort run? a.People know the central bank president's true desires and believe he will stay in office for a long time b.Peoples' wage wage contracts are long-lasting. c.People know the central bank president's true desires and believe that he will only be in office for a short time. d.People think that the central bank president's desires are the same as the previous president's and believe that the new president will be in office for a short time. e.People think that the central bank president's desires are the same as the previous president's and believe that the new president will be in office for a
The main problem of a government constantly using monetary policy to reduce unemployment, as guided bythe Phillips curve is:(a) people eventually update their expectations, shifting the Phillips curve to the right, worsening theinflation-unemployment trade-off(b) people increase their demand for money very fast, rendering monetary policy more difficult(c) eventually hitting the zero lower bound, where monetary policy is not effective anymore(d) being exposed to a negative supply shock(e) none of the above is a problem
Problem 5. Suppose people's inflation expectations are subject to ran- dom shocks: at time t-1, expected inflation in time t is Et-1t = Tt-1+t-1 where nt-1 is a random shock with mean zero but deviates from zero when some event beyond past inflation causes expected inflation to change. Also, Ett+1 = πt +Nt. 3 A. Derive the DAD and DAS equations. Hint: For DAS, express T as a function of (Y - Y); for DAD, express Y, as a function of (T- πt). B. Suppose the economy experiences an inflation scare: in period t, people believe that inflation in t+1 will be higher so nt> 0 (but for this period only). What happens to DAD and DAS in t? Explain what happens to output, inflation, nominal interest rate, and real interest rate. Show a graph and provide labels for equilibrium points (A, B, C, etc.) as needed.
Explain different approaches – Neo Keynesian, Friedman, and Lucas – of Philips curve in the short – run and Phillips curve in the long – run
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