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On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the increase in the money supply. 6 5 SR Phillips Curve

On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the increase in the money supply. 6 5 SR Phillips Curve

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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please also do the graphs. and i have posted two screenshots as they are connected. thank youuuuuuuuuuuuu

unemployment rate. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the increase in the money supply. INFLATION RATE (Percent) 6 5 0 0 3 9 SR Phillips Curve 6 12 UNEMPLOYMENT RATE (Percent) 15 In the long run, the increase in the money supply results in (relative to the economy's initial equilibrium). 18 no change an increase a decrease SR Phillips Curve Point along PC in the inflation rate and no change an increase a decrease in the unemployment rate
Transcribed Image Text:unemployment rate. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the increase in the money supply. INFLATION RATE (Percent) 6 5 0 0 3 9 SR Phillips Curve 6 12 UNEMPLOYMENT RATE (Percent) 15 In the long run, the increase in the money supply results in (relative to the economy's initial equilibrium). 18 no change an increase a decrease SR Phillips Curve Point along PC in the inflation rate and no change an increase a decrease in the unemployment rate
The following graph shows the current short-run Phillips curve for a hypothetical economy; the point on the graph shows the initial unemployment rate and inflation rate. Assume that the economy is currently in long-run equilibrium. Suppose the central bank of the hypothetical economy decides to increase the money supply. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the short-run effects of this policy. Hint: You may assume that the central bank's move was unanticipated. INFLATION RATE (Percent) 5 0 3 9 SR Phillips Curve 6 12 UNEMPLOYMENT RATE (Percent) 15 18 SR Phillips Curve Point along PC no change, a decrease In the short run, an unexpected increase in the money supply results in an increase unemployment rate. ? no change, a decrease in the inflation rate and an increase in the
Transcribed Image Text:The following graph shows the current short-run Phillips curve for a hypothetical economy; the point on the graph shows the initial unemployment rate and inflation rate. Assume that the economy is currently in long-run equilibrium. Suppose the central bank of the hypothetical economy decides to increase the money supply. On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the short-run effects of this policy. Hint: You may assume that the central bank's move was unanticipated. INFLATION RATE (Percent) 5 0 3 9 SR Phillips Curve 6 12 UNEMPLOYMENT RATE (Percent) 15 18 SR Phillips Curve Point along PC no change, a decrease In the short run, an unexpected increase in the money supply results in an increase unemployment rate. ? no change, a decrease in the inflation rate and an increase in the
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