Given the Phillips Curve model below, suppose the economy is in an inflationary gap. and policy-makers (Fed or President & Congress) decide to intervene.        If policy-makers decide to intervene, what type of “policy” will they advocate? With the use of policy, the economy will move from point _____ to point _____.

Economics   Options for the first 3 blanks (increase, derease, no change,) Option for last: rational expectations theory, monetarism, keynesian theory

Solve this economic If the Fed is able to permanently reduce the inflation rate, households will eventually lower their expectation of the inflation rate. Once that happens, the Phillips curve will shift ________, and the Fed can return output to potential GDP by ________ the real interest rate. Select a) :up; lowering b) up; raising c)down; raising d) down; lowering

Consider the Friedman-Phelps model of the Phillips Curve as discussed in lecture. Assume the economy is currently at Y-full employment. When the Fed sells government securities to the public, and there are no other exogenous shocks to the economy, which one of the following is predicted to happen? The actual inflation rate increases, and the unemployment rate increases permanently. O The actual inflation rate increases, and the unemployment rate increases first and then gradually goes back to the natural rate of unemployment. O The actual inflation rate decreases, and the unemployment rate increases first and then gradually goes back to the natural rate of unemployment. The actual inflation rate decreases, and the unemployment rate increases permanently. The actual inflation rate decreases, and the unemployment rate decreases first and then gradually goes back to the natural rate of unemployment.

Problem 2: Production Model Suppose that firms produce according to the following production function: Y = At(K₂) (Lt) (N₁) ¹-a-B where At captures productivity, K, capital, L, labor, and N, land available for business use. We can define wt as wages, rk as rental rates for capital, and r as rental rates for land usage. (a) (b) Write down the firm's profit maximizing problem. Be sure to identify the vari- ables the firm can choose and which it takes as given. Are there increasing returns to labor (L)? Land (N)? Explain.

I need help with this question with explanation.

Please answer question. Thanks.

(23) Assume that the economy begins in long-run equilibrium and that the federal reserve decides to use open market operations to sell bonds. In the short run, what happens to the price level? Group of answer choices (A) It goes down. (B) It goes up. (C) It stays the same.

If a 2​-percent increase in the price of corn flakes causes a 10​-percent decline in the quantity​ demanded, what is the elasticity of​ demand?

Kindly answer E-H. Thank you.