Project #28336 - Macroeconomics

Just Answer these questions with detailed reasoning behind it. 

 

  1. (Figure: Monetary Policy and the AD–SRAS Model) Refer to the information in the figure Monetary Policy and the AD–SRAS Model. If the economy is in a recessionary gap at point f, it could move to point g as a result of:

    1. A)  a decrease in government spending.

    2. B)  raising the discount rate.

    3. C)  a decrease in the money supply.

    4. D)  buying government securities in the open market.

  2. (Figure: Monetary Policy and the AD–SRAS Model) Refer to the information in the figure Monetary Policy and the AD–SRAS Model. If the economy is in an inflationary gap at point h, it can move to point i as a result of:

    1. A)  an increase in the money supply.

    2. B)  lowering the discount rate.

    3. C)  a decrease in the money supply.

    4. D)  buying government securities in the open market.

  3. (Figure: Monetary Policy and the AD-SRAS Model) Refer to the information in the figure Monetary Policy and the AD–SRAS Model. If the economy is at point h because of an open market purchase by the Federal Reserve and no further monetary policy is implemented, in the long run:

  1. A)  nominal wages will increase, shift SRAS to SRAS', decrease real GDP, and increase the price level.

  2. B)  nominal wages will increase, shift SRAS to SRAS', increase real GDP, and decrease the price level.

  3. C)  nominal wages will decrease, shift SRAS further to the right, decrease real GDP, and increase the

    price level.

  4. D)  nominal wages will decrease, shift SRAS to SRAS', increase real GDP, and decrease the price

    level.

17. (Figure: Monetary Policy and the AD-SRAS Model) If the economy is at point f because of an open market sale by the Federal Reserve and no further monetary policy is implemented, in the long run:

  1. A)  nominal wages will increase, shift SRAS to SRAS', decrease real GDP, and increase the price level.

  2. B)  nominal wages will increase, shift SRAS to SRAS', increase real GDP, and decrease the price level.

  3.  

  4. C)  nominal wages will decrease, shift SRAS' to SRAS, increase real GDP, and decrease the price level.
  5. D) nominal wages will decrease, shift SRAS' to SRAS, decrease real GDP, and decrease the price level. 

 

 

2. Suppose the annual inflation rate is at 2%, and 8.5% of the labor force is unemployed. If you were on the Federal Reserve's Open Market Committee, what action (i.e., specific action) would you prescribe? How would this affect the economy, the inflation rate, and the unemployment rate? --> for this question please include the correct SRAS (Short Term Aggregate Supply) graph. 

 

P.S. Price is negotiable 

 

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Due By (Pacific Time) 04/23/2014 07:00 pm
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