Business, 26.03.2023 09:45 jwagner1580

Assume the economy of Country X is operating above its full-employment output level.
a. Using a correctly labeled graph of aggregate demand, short-run aggregate supply, and long-run aggregate supply, show the short-run equilibrium, labeling the equilibrium price level as PLe and the equilibrium output as Ye
b. Draw a single correctly labeled graph and show both a short-run and a long-run Phillips curve. Identify a point that could represent the short-run equilibrium in part (a) and label it as Z. c. Assume that the central bank of Country X wants the economy to be in full-employment equilibrium. If thebanking system in Country X has ample reserves, what monetary policy action should the central bank initiate?
d. Given your answer in part (c), what will be the effect of the central bank’s action on each of the following in the short run?
i. The nominal interest rate
ii. Employment. Explain.
e. Assume that the real interest rate increases in Country X. Will the international value of Country X’s currency increase, decrease, or remain unchanged on the foreign exchange market? Explain.
f. Assume that Country X’s capital and financial account balance is initially zero. Given your answer to part (e), will its capital and financial account balance now be in surplus, be in deficit, or remain at zero?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:30

Leon and sara are arguing over when the best time is to degrease soup. leon says that it's easiest to degrease soup when it's boiling. sara says it's easiest to degrease soup when it's cold. who is correct? a. neither leon nor sara is correct. b. leon is correct. c. both leon and sara are correct. d. sara is correct. student b incorrect which following answer correct?

Answers: 1

Answer

Business, 22.06.2019 12:00

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

Answers: 1

Answer

Business, 22.06.2019 15:10

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.

Answers: 3

Answer

Business, 22.06.2019 19:30

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%

Answers: 3

Answer

You know the right answer?

Assume the economy of Country X is operating above its full-employment output level.
a. Using...

Questions