What is meant by monetary neutrality? How exactly does an increase in the money supply lead to a proportionate increase in the Price level in our long run model with money included? What is meant by the "Classical Dichotomy."
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- What is the economic justifcation for the sticky infation assumption? Whatrole does this assumption play in the short-run model?Please complete the statements using the labels provided. Suppose that the Federal Reserve Bank wants to address high levels of unemployment in the economy. To do so, it would likely seek to increase If the Federal Reserve Bank is able to instigate the growth it desires, it will likely come at the cost of increasing Suppose that the Federal Reserve Bank achieves the growth it wants, but also experiences the negative consequences. As a result, it will seek to decrease nto a | , at the risk of leading the economy Answer Bank aggregate supply recession aggregate demand deflation inflation disinflationUnit Activity: Mathematical Models and Investments Part D Jacob lost his job and now has to buy health insurance on his own. Why are his premiums likely to increase? BIUX² X₂ 15px 注 注 有 無 ≡ ≡ V v V Space used (includes formatting): 0 / 15000 Space used (includes formatting): 0/-15000 A V Part E Describe a person who would not need life insurance. BIUX² X₂ 15px A N ▸ A Apr 15 6 of 11 10:01 S 4
- Compare the effects of a change in money supply and technology in a model with fully sticky prices and partially sticky prices. Describe the dynamics that makes the model move from a short run equilibrium to a long run equilibrium. How would your answers be different if the model had perfectly flexible prices. Why short run equilibrium output level is not efficient? Give proper economic reasoning.Can you please just draw the 3 Economic models , the 2 blanchard IS-LM-PC and the Anti Blanchard IS-LM-PC, can you do it for each case , please dont generate AI graphs this is the 5th time i have had to upload this question Assume an economy that starts with Y=Yn .Illustrate graphically and explain the impact of a contractionary monetary policy shock (e.g. a fall in the money supply or a rise in the interest rate) on output, inflation, and the distribution between profits and real wages in each of the following three models: Blanchard IS-LM-PC model with exogenous money; the Blanchard IS-LM-PC model with endogenous money; and the Anti-Blanchard IS-LM-PC model with endogenous money where firms have the power to adjust the economy after a shock.Consider the Diamond-Dybvig model of banks that offer deposit facilities toconsumers who do not yet know whether they want to consume ‘early’ or ‘late’. a)) Outline the model and explain how demand deposit banking helpsconsumers to resolve the uncertainty over their consumption profile. b)Explain why even a healthy bank might fail. c)Discuss policy options for ensuring stable consumption
- To https://aplia.apps.ng.cengage.com/ar/serviet/quiz?cx=bkhana-0031&quiz_action=takeQuiz&quiz_probGuid=... The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve shifts to the left from AS₁ to AS2, causing the quantity of output supplied at a price level of 100 to fall from $200 billion to $150 billion. ? 200 AS 175 AS₁ 150 125 100 75 50 25 0 PRICE LEVEL 0 50 300 200 250 QUANTITY OF OUTPUT 100 150 350 400 YoSuppose you want to estimate following demand for money for US economy using data from 1960 to 2005 (b) M =B,Y e e" How will you estimate above model? What are economic meanings of B, and B, ? %3D i. ii.Please no written by hand solution Suppose you are given the following scenario: The Federal Reserve has reported the federal funds rate at 2.75 percent. The economy’s growth rate over the past several quarters has languished around 1 percent (annualized) per year while unemployment has increased by 1.5 percentage points to a current national average of 8.7 percent. The GDP deflator index has remained relatively steady, yielding an average inflation rate of 1.8 percent over the last two years. What would you recommend as a Keynesian policy advisor? In the first part of your answer, identify the economic problem(s) best described in the scenario above. Secondly, determine the appropriate economic policy (fiscal or monetary) that would be most effective in responding to the economic problem(s) identified in part one. Lastly, explain the consequences your recommended policy would have on the macroeconomy in both the short run and the long run. Your answer should be at leas a couple of…
- what are the major differences of the Mundell Fleming Model in the short run as opposed to in the long run? Give distinct points and explain.Solve all this question......you will not solve all questions then I will give you down?? upvote.......Suppose you observe the time series of output y and real money supply M/ P reported in the Figure below. Nominal money supply M is under full control of the Central Bank. Output y Real Money Supply M$/P + + + Time t Time t 1 3 4 6. 1 3 4 6. Interpret these time series using the ASAD Redux model with workers misperceptions (Lecture Notes, Chapter 1). Assume that the time paths are caused by a single permanent shock hitting the economy at time t= 1, and interpret time t = 6 as the medium run. Your general task is to guess what type of shock can be responsible for the observed time series. Answer each of the following questions, providing clear motivation for your statements: (C) Can the shock be a permanent change, positive or negative, in firms productivity 2? Motivate your answer.
