If the problem in the economy is very high cyclical unemployment, we expect the Federal Open Market Committee (FOMC) to interest rates to spending today. raise; reduce raise; induce lower; induce lower; reduce

Not quite understanding this one. Please help

Q1. Phillip's Curve: For each of the following draw an AD-AS diagram and a corresponding Phillip's curve assuming the following: (1) actual RGDP is $9,200 (2) full employment RGDP is $10,000 (3) the natural rate of unemployment is 5%; (4) actual unemployment fluctuates around 5% a. Show in both diagrams the effect of an increase in government purchases that pushes actual RGDP up to full employment b. Again assume actual GDP is at $9,200, show in both diagrams the effect of the Federal Reserve bank selling versus buying treasury bonds to banks. c. Again assume actual GDP is at $9,200, show in both diagrams the effect of self-correction mechanism.

Explain any two causes of deflationary gap in an economy?

In the medium run, if government purchases are increased and nominal money supply is decreased, we can expect that   a. the interest rate will increase while aggregate demand and prices may increase, decrease, or remain the same   b. aggregate demand and prices will increase but interest rates will not change   c. aggregate demand and interest rates will decrease but prices will increase   d. aggregate demand, prices, and the interest rate will all decrease   e. the AD-curve will shift to the right and the AS-curve will shift to the left

Distinguish between inflationary and recessionary (deflationary) gaps? How do these gaps impact the economy?

Use two graphs in the AD-AS framework to compare and contrast demand-pull and cost-push inflation. How do their causes differ? How do the outcomes (inflation, output, employment) differ?

Suppose that the economy is depicted in the graph to the right. Using the line drawing tool, show demand-pull inflation by correctly shifting aggregate demand. Label the new line 'AD, Carefully follow the instructions above, and only draw the required objects. stion 5.1 here to search

Which of the following policies would most likely reduce frictional​ unemployment?   A. All of the stated policies are typically targeted to reduce frictional unemployment   B. None of the of the stated policies are typically targeted to reduce frictional unemployment because frictional unemployment is the equivalent of​ “technological unemployment” articulated by Keynes in the General Theory   C. Expansionary fiscal policy   D. Reducing unemployment compensation payments   E. Greater online or​ internet/web-based employment search sites

14) The A) increase; rigid C) decline; flexible in employment during a recession is smaller if wages are B) decline; rigid D) increase; flexible