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

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

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 shifts left.
Due to lower RGDP, unemployment fears grow and workers are willing to accept lower nominal wages.
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.
Oil prices rise.
We now have cost-push inflation, or a stagflation.
SRAS will now shift right.