What are the short and long run effects of using any of the
fiscal or monetary...
What are the short and long run effects of using any of the
fiscal or monetary policy tools (both when we hold the LRAS
constant and when we allow it to change per the policy
applied)?
What are the short-run and long-run effects of monetary
tightening on nominal interest rate? 12. Ture of False (based on
Question 11 above): In the short run, normal interest rate does not
rise as much as the real interest rate. (Please justify)
Demonstrate graphically and explain the short-run and long-run
effects of an unanticipated monetary expansion in the new classical
model. In your opinion, would the results change in the short-run
or the long-run if labour union was not in existence in the
economy?
1、Discuss the long run effects of “crowding out” due to a short run
expansionary fiscal policy.
2、if MPC(marginal propensity to consume) is larger, is the
Multiplier bigger or smaller? Why?
3、if average price of GDP increases, what happens to quantity
demanded of real GDP in Aggregate Demand? Explain it based on
"Interest-rate Effect"
(each question has to be more than 5 sentences)
Some analysts use the short-run and long-run effects on the aggregate demand-aggregate supply model to argue that expansionary monetary policy can't affect employment in the long run because in the short run, monetary policy shifts the aggregate: demand curve to the left, but over time the increase in prices shifts aggregate supply to the right so that GDP will end up going back to its same level of output with a higher price level. supply curve to the left, but over time...