For each of the following scenarios, illustrate the effectsof the development on both the short-run and long-run Phillips curves (SRPC and LRPC respectively). Plzshow a colored graph so I can see if I moved them tothe right positionsFor each of the following scenarios, illustrate the effects of the development on both the short-run and long-rum Phillips curves (SRPC and LRPC,respectively)There is a fall in the natural rate of unemployment.LRPCUnemployment RateSRPCThere is an advance in technology that makes production more efficient.There is a decrease in taxes.LRPCUnemployment RateSAPCSRPCLRPCSAPC°Movement along SRPCLRPCLRPCSRPC

Phillip curves: This is the graphical representation of the inverse relationship between inflation…

For each of the following scenarios, illustrate the effects of the development on both the short-run and long- run Phillips curves (SRPC and LRPC respectively). Plz show a colored graph so I can see if I moved them to the right positions

For each of the following scenarios, illustrate the effects of the development on both the short-run and long- run Phillips curves (SRPC and LRPC respectively). Plz show a colored graph so I can see if I moved them to the right positions

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: The Short-run Trade-off Between Inflation And Unemployment

Section: Chapter Questions

Problem 8PA

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Pls help with below homework. Select the correct option and explain it in 7-8 sentences.
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Assume that the unemployment rate rises. What is the impact on the short run Phillips curve? O It will shift up. O There will be movement along the curve to the left. O There will be movement along the curve to the right. OIt will shift down. Show Transcribed Text The following equations describes an economy: Y=C+I+G+ NX C = 250 +0.7*(1-t)Y t = 0.2 1 = 300 G = 60 NX = 40 Which of the following statements is true? O If exports increase by 10, equilibrium Y will increase by 33. O Without any changes, the equilibrium level of Y is 2167. O If government spending increases by 40, equilibrium Y will increase by 46.51. The value of the government spending multiplier is 2.27. Show Transcribed Text
Would you expect to see long-run data trace out a stable downward-sloping Phillips curve?
The United States has experienced persistent inflation (=inflationary gaps) duringthe 1960s and especially throughout the 1970s. But there has been some inflationevery year since 1954. What would have been the prevailing solution to thisproblem before the Great Depression in 1930s? Explain and show graphically usingthe model of Aggregate Demand-Aggregate Supply.
Imagine the U.S. economy is in long-run equilibrium. Then suppose the value of the U.S. dollar increases. At the same time, people in the U.S. revise their expectations so that the expected price level falls. We would expect that in the short-run O the price level will rise, and real GDP might rise, fall, or stay the same. O real GDP will rise and the price level might rise, fall, or stay the same. O the price level will fall, and real GDP might rise, fall, or stay the same. O real GDP will fall and the price level might rise, fall, or stay the same.
According to the Sticky Price Theory, SRAS curve is upward sloping because: O Some fırms are slow to respond to overall price level changes in the economy. All firms are slow to respond to overall price level changes in the economy. None of the firms respond to overall price level changes in the economy. Some fırms are slow to respond to overall technological changes in the economy. Which of the following correctly explains the sticky-wage effect? As wages are sticky in the short-run due to labor contracts, any increase in price level reduces the real wage, which in turn, reduces the cost of production for the firms and they decrease their supply in the short-run. O As wages are sticky in the long-run due to labor contracts, any decrease in price level reduces the real wage, which in turn, reduces the cost of production for the firms and they decrease their supply in the short-run. As wages are sticky in the long-run due to labor contracts, any decrease in price level increases the…
Pls help with this multiple choice question.
Identify which curve on the previous graph corresponds to each of the following descriptions. If the curve described is not shown on the graph, choose Not Shown. In the descriptions, AD represents aggregate demand; SRAS represents short-run aggregate supply; LRAS represents long-run aggregate supply. Description SRAS if the expected price level is 50 SRAS if the expected price level is 70 SRAS if the expected price level is 60 LRAS AD a O O O b O O O O O с O O O O O d O с O O Not Shown O O O O Suppose the economy is currently in short-run equilibrium at point L. In this case, the economy is producing at an output level potential output. At current prices and wage levels, real wages are what firms and workers expected when they agreed on wage curve to shift to the contracts. In the long run, if the price level and the nominal wage are both flexible, wages will, which will cause the . Assuming the other two curves do not change, the economy will reach a new equilibrium at an output of…
Price level AD AD Real GDP FIGURE 23-4 Refer to Figure 23-4. Suppose the Canadian economy is initially in equilibrium at point A. An unexpected shock then shifts both the AD and the AS curves as shown and results in a new equilibrium represented by point B. Which of the following events could cause such a shock? Select one: O A. a decrease in the world price of oil O B. an increase in the net tax rate O C. an increase in factor prices O D. a decrease in firms' desired investment experiditures a decrease in labour productivity
“Households decide to save a larger share of their income will shift aggregatedemand curve upward because higher saving will boost investment which inturn increase the demand for investment goods.” Do you agree with thestatement? Explain your choice. e. Graphically derive short run Phillips curve with the help of aggregate demand and supply model.