There is an inflationary gap of $500 m in the full SR model, IS-LM; and I=450 + 0.25Y-1500i; C=350+.65 YD. Calculate the required to policy and show what will happen, cet. par., in the appropriate graph.
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- There is an inflationary gap of $500 m in the full SR model, IS-LM; and I=450 + 0.25Y-1500i; C=350+.65 YD. Calculate the required to policy and show what will happen, cet. par., in the appropriate graph.
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- in a standard AD/AS SRAS curve is steep A permanent investment increase, that increases output potential, lead to large short term inflation incrreases but none long term Is the true or falsewhat is management's usual reasons for using LIFO in an inflationary economy?The expected real rate of interest is 0.5%, actual inflation over the last year was -0.05%, and the nominal interest rate is currently 0.28%. According to the Fisher equation, what is the expected inflation (in %) over the next year, dPe? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15
- A country is experiencing an inflation rate of exactly 100 percent per month for 4 months. At the end of 4 months, the price level has increased _____ times in relationship to the initial period.A man deposited his first paycheck of $2000 into a long-term savings account at a bank at an interest rate of 12% in 1951 as a gift to his future grandchild. Assume a steady inflation rate of 8%. If his grandchild withdraws that money today in 2021, how much actual money did they withdraw? How much purchasing power would this withdrawal have in 1951?If the inflation rate is 6% and Susan receives a 6% increase in income, then, over the year, Susan's: (a) Real and nominal income both remain unchanged; (b) Real and nominal income both rise; (c) Real income rises but nominal income remains unchanged; (d) Nominal income rises but real income remains unchanged. Given the import function, Z = 300 + 2/3Y, which of the following statements is correct? (a) The marginal propensity to save is 1/3; (b) The induced component is 300; (c) 2/3 is the proportion of any income spent on imports; (d) None of the statements is correct. An increase of R5 billion in income in a macroeconomy leads to an increase in R3 billion in consumption spending. From this information, we can determine that the marginal propensity to save in this economy is: (a) 0.6; (b) 0.5; (c) 0.3; (d) 0.4.
- The canadian annual inflation rate exceeds annual increase in canadian wings this statement isca macroeconomic issueLast year, a country had a NGDP of $4 million, and this year it had a NGDP of $4.2 million. During the last year, inflation was 2%. What was the growth in RGDP? 2% 3% -3% 5%In the 1960s the U.S entered the Vietnam War, and military expenditures (part of government expenditures) grew from an annual rate of $113 billion to 138 billion. The economy was near full-employment and, therefore, given there was no offsetting tax increase, inflation pressures emerged. Assume the MPC is .75 C) With the AD Excess at $150 billion in 1968, what change in taxes would you have recommended? D) How would an increase in income/transfer payments of $150 billion have affected AD ? Have
- John Rebel deposits $10,000 every year for 25 years towards his retirement. If the account earns a market interest rate of 8% per year and inflation is expected to average 2% per year over that period, how much money will be in the account after 25 years in actual dollars and in real dollars. ..... In actual dollars: A. $1,007,446 B. $539,644 C. $731,059 D. $445,603 In real dollars: A. $1,007,446 B. $539,644 C. $731,059 D. $445,603How can we calculate the average general inflation rate from the base period?Assume that an increase in aggregate demand results in a positive bargaining gap which is constant at 2%. The rate of inflation in future years will: Select one: a.Fall by 2% each year b.lncrease by 2% each year c.Remain constant at 2% per year d.Remain unchanged