are my answers correct? The following graph plots a short-run Phillips curve for a hypothetical economy.Show the short-run effect of a contractionary monetary policy by dragging the point along the short-run Phillips curve (SRPC) or shifting the curve tothe appropriate position.INFLATION RATE (Percent)12111098co01321O12O34UNEMPLOYMENT (Percent)OSRPC56SRPC?Now, show the long-run effect of a contractionary monetary policy by dragging either the short-run Phillips curve (SRPC), the long-run Phillips curve(LRPC), or both. INFLATION RATE (Percent)12111098765st32100■1LRPC2++++SRPC₁34UNEMPLOYMENT (Percent)SRPC256A general decrease in purchasing powerDecreased variability of relative pricesSRPCLRPCAs anticipated, inflation falls and the short-run Phillips curve shifts downwardtemporary unemploymentWhich of the following examples represents a cost of inflation? Check all that apply.Ihighlighting the cost of fighting inflation, which isAn increase in shoe leather costs as consumers attempt to reduce their monetary holdingsA home goods store's need to change the price tags more frequently on items sold in the store

Monetary policy refers to the actions taken by a central bank or other monetary authority to control…

The following graph plots a short-run Phillips curve for a hypothetical economy. Show the short-run effect of a contractionary monetary policy by dragging the point along the short-run Phillips curve (SRPC) or shifting the curve to the appropriate position. INFLATION RATE (Percent) 12 11 10 9 8 4 10 5 3₂2 2 1 0 0 1 O 2 4 UNEMPLOYMENT (Percent) 3 SRPC 5 SRPC Now, show the long-run effect of a contractionary monetary policy by dragging either the short-run Phillips curve (SRPC), the long-run Phillips curve

The following graph plots a short-run Phillips curve for a hypothetical economy. Show the short-run effect of a contractionary monetary policy by dragging the point along the short-run Phillips curve (SRPC) or shifting the curve to the appropriate position. INFLATION RATE (Percent) 12 11 10 9 8 4 10 5 3₂2 2 1 0 0 1 O 2 4 UNEMPLOYMENT (Percent) 3 SRPC 5 SRPC Now, show the long-run effect of a contractionary monetary policy by dragging either the short-run Phillips curve (SRPC), 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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Question

are my answers correct?

The following graph plots a short-run Phillips curve for a hypothetical economy.
Show the short-run effect of a contractionary monetary policy by dragging the point along the short-run Phillips curve (SRPC) or shifting the curve to
the appropriate position.
INFLATION RATE (Percent)
12
11
10
9
8
co
01
3
2
1
O
1
2
O
3
4
UNEMPLOYMENT (Percent)
O
SRPC
5
6
SRPC
?
Now, show the long-run effect of a contractionary monetary policy by dragging either the short-run Phillips curve (SRPC), the long-run Phillips curve
(LRPC), or both.

INFLATION RATE (Percent)
12
11
10
9
8
7
6
5
st
3
2
1
0
0
■
1
LRPC
2
++++
SRPC₁
3
4
UNEMPLOYMENT (Percent)
SRPC2
5
6
A general decrease in purchasing power
Decreased variability of relative prices
SRPC
LRPC
As anticipated, inflation falls and the short-run Phillips curve shifts downward
temporary unemployment
Which of the following examples represents a cost of inflation? Check all that apply.
I
highlighting the cost of fighting inflation, which is
An increase in shoe leather costs as consumers attempt to reduce their monetary holdings
A home goods store's need to change the price tags more frequently on items sold in the store

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