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Video Follow-up: Macro 3.7-LR Adjustments

Posljednje ažuriranje over 1 year ago

5

Instrukcije

Pick 1, Answer the 5 questions!

Question 1

01:19

1

Question 2

03:14

1

Question 3

04:56

1

Question 4

06:03

1

Question 5

06:35

1

Pitanje 1

1.

Sort the following based on time frame.

Price Level changes by the same amount of nominal wages and resource costs
Sticky (Nominal) Wages
Flexible (Nominal) Wages
Sticky Resource Prices
Flexible Resource Prices
Price Level changes faster or more than nominal wages and resource costs

Short Run
Long Run

Pitanje 2

2.

At long-run equilibrium, the natural rate of unemployment is equal to the current rate of unemployment.

Tačno

Netačno

Pitanje 3

3.

The long-run adjustment solution to a recessionary gap is for to shift to the . The long-run adjustment solution to a recessionary gap is for to shift to the .

Drugi mogući odgovor:

SRAS

Left

AD

LRAS

Right

Pitanje 4

4.

Sequence the LR-Adjustment from LR to SR back to LR.

The economy starts in LR-Equilibrium.
The economy is back to full employment with a higher PL and RGDP that is stabilized back at its full employment position.
In the SR, nominal wages are sticky, but firms will agree to higher nominal wages in the LR.
Due to higher prices, workers demand higher nominal wages.
We have demand pull inflation and a positive output gap.
Consumer confidence increases.
SRAS shifts left.
AD shifts right

Pitanje 5

5.

Sequence the LR-Adjustment from LR to SR back to LR.

The economy will be back at long-run position with no change in PL or RGDP.
SRAS will now shift right.
We now have cost-push inflation, or a stagflation.
The economy starts in LR-Equilibrium.
Nominal wages are sticky in the SR, but flexible in the LR. As such, firms will pay lower nominal wages in the LR.
SRAS shifts left.
Oil prices rise.
Due to lower RGDP, unemployment fears grow and workers are willing to accept lower nominal wages.