Chapter 11: Q.b For Critical Thinking (page 243)
If the credit spread were to widen suddenly and thereby signal weakened credit-market sentiment, would this event foreshadow a future positive or negative aggregate demand shock? Explain.
This event will foreshadow a future negative aggregate demand shock
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
"There is absolutely no distinction between equilibrium in the classical model and the model of longrun macroeconomic equilibrium." Is this statement true or false? Support your answer.
II A particle moving along the axis has its velocity described by the function \(v_{x}=2 t^{2} \mathrm{~m} / \mathrm{s}\), where \(t\) is in s. Its initial position is \(x_{0}=1 \mathrm{~m}\) at \(t_{0}=0 \mathrm{~s}\). At \(t=1 \mathrm{~s}\) what are the particle's (a) position, (b) velocity, and (c) acceleration?
Suppose that the Keynesian short-run aggregate supply curve is applicable for a nation's economy. Use appropriate diagrams to assist in answering the following questions:
What are two events that can cause the nation's real to increase in the short run?
What are two events that can cause the nation's real to increase in the long run?
Take a look at Figure 11-11. If this country's government decides to enact short-term barriers to international trade and substantial regulations of domestic businesses, what happens to the short-run equilibrium price level, and why? Is this an example of demand-pull or cost-push inflation? Explain.
Discuss the essential features of Keynesian economics and explain the short-run aggregate supply curve
What do you think about this solution?
We value your feedback to improve our textbook solutions.
