In A)- D), fill in the missing words (one gap = one word). A) In an expansionary gap, actual output is than potential output, and inflation expectations will (sooner or later) which shifts the short-run Phillips curve (3p) B) In case of a negative demand shock, the aggregate demand curve shifts output inflation and unemployment (4p) C) In case of inflation and nominal wage rigidities, real wage costs which shifts the short-run aggregate supply curve (2p)

In A)- D), fill in the missing words (one gap = one word). A) In an expansionary gap, actual output is than potential output, and inflation expectations will (sooner or later) which shifts the short-run Phillips curve (3p) B) In case of a negative demand shock, the aggregate demand curve shifts output inflation and unemployment (4p) C) In case of inflation and nominal wage rigidities, real wage costs which shifts the short-run aggregate supply curve (2p)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph depicts the short-run and long-run Phillips curves (SRPC and LRPC) for a hypothetical economy in long-run macroeconomic equilibrium at point A, where the natural unemployment rate is 6% and the current inflation rate is 8% per year.
Kindly answer A-D. Thank you.
The Phillips curve shifts in response to changes in in a shock. production costs; supply the real interest rates; financial aggregate expenditure; spending production costs; spending such as the minimum wage changing, which results
Please answer both parts! macroeconomics; long-run. Thank you!
How does the modern view of the Phillips curve differ from the earlier view? ___The early view of the Phillips curve suggested that the Phillips curve shifts with changes in inflation expectations. Such a view failed to recognize that the Phillips curve is a fixed inverse relationship between inflation and unemployment. ___The early view of the Phillips curve suggested that the Phillips curve is fixed, with higher rates of inflation associated with lower rates of unemployment, and vice versa. Such a view failed to recognize the importance of inflation expectations in determining the position of the short-run Phillips curve. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Suppose the current administration decides to increase government expenditures as a means of fighting the COVID-19 crisis. a) Using a graph of aggregate demand and supply, show the effects of such a decision on the economy in the short run. Describe the effects on inflation and output
Derive the Phillips Curve from the Short Run Aggregate Supply (SRAS) Curve and discuss the relevance of their relationship for the Ghanaian economy.
The COVID 19 pandemic and the associated lockdown has led to an increase in aggregate prices of food in country. Using your understanding of (a) the fundamental causes of inflation, (b) the aggregate demand and aggregate supply curve (LR and SR) shifts, provide your sound reasoning for why this aggregate food price increases could have happened in this season.
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Kindly answer E-H. Thank you.