what is the modification of Phillips curve?

Q: Under the assumption of anticipated shocks, can policymakers exploit the Phillips curve relationship…

A: The Phillips curve is a trade off between inflation and unemployment to lower (raise) Unemployment,…

Q: What is the Phillips Curve? Explain the theory behind it carefully.

A: A. W. Phillips is credited with developing the economic idea known as the Phillips curve, which…

Q: Use the Fishcher Model to explain the relationship between inflation, interest rate and unemployment…

A: The connection between real and nominal interest and inflation rates is described by Irving Fisher's…

Q: Explain the term “Rational Expectations” as Thaler used in the first chapter of Misbehaving.

A: "Rational expectations" are model-consistent expectations in economics, in which agents within the…

Q: Using two AD/AS diagrams, explain cost-push and demand-pull inflation.

A: Inflation can be divided into two types of categories: 1. Demand-Pull Inflation >Inflation that…

Q: What is BOP?

A: A statement of all transactions of a country with the rest of the world during a given period.

Q: How are Milton Friedman’s theories a critique/response to Keynes’ theories?

A: Milton Friedman advocated for a free market economy with minimal government intervention.Friedman,…

Q: What’s the difference between how a Keynesian economist would sketch an AS curve and a Phillips…

A: Keynesians The Keynesian aggregate supply curve shows the inverse L shape curve, it explains that it…

Q: In the CNN video, Sarlin interviews a journalist who explains the reason people pay feel worse about…

A: The issue includes understanding the reason why people could feel negative about the economy in any…

Q: How were the Keynesian, Monetarist and New Classical theories of the economy synthesized to develop…

A: Keynesian Theory: Keynesian hypothesis places that total interest won't generally meet the stock…

Q: Is Keynesian economics relevant in today's new normal? In what way? Explain.

A: According to Keynesian economics economic output is influenced by aggregate demand in short run. It…

Q: Does it make sense that wages would be sticky downwards but not upwards? Why or why not?

A: Sticky wage is a concept of the labor market where the wages are set to a downward trend so that the…

Q: Many central banks now indicate that their primary objective is to keep inflation at a persistently…

A: The fluctuations in nations GDP overtime is shown by the business cycle models. It helps in showing…

Q: What is, according to Keynes, the role of expectations in stabilizing or destabilizing the aggregate…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: The slope of the Phillips curve: Draw a graph with a steep Phillips curve anda graph with a gently…

A: The Phillips curve has analyzed the connection between inflation and unemployment. The curve which…

Q: an economy's policy makers be tempted to renege  or reverse an announcement they made earlie

A: Policymaker- the person who design policies.

Q: What is Expectations hypothesis?

A: In economics, expectations hypothesis is one of the economic hypothesis used to determine or…

Q: Phillips Curve graph, aggregate model(side-by- side)- show the relationship between the Phillips…

A: Keynesian economics is a school of thought that prioritizes governmental involvement in the economy…

Q: Why might policymakers be tempted to renege on an announcement they made earlier? In this situation,…

A:

Q: Consider an increase in global oil and gas prices from the point of the euro area (that does not…

A: The Aggregate Demand-Aggregate Supply (AD-AS) model is a macroeconomic framework that helps…

Q: Why, in general, do shocks force people to make changes? Give at least two examples from your own…

A: Shock: It refers to the change in the variable or relationship that shows the considerable effect on…

Q: What are the different measures used by the government to control unemployment? How does Philip's…

A: The economics as a study is based upon the basic idea of scarcity of resources. The scarcity…

Q: What is stagflation? How may it affect the Phillips Curve? What policy measures may be taken to…

A: Phillips curve shows a non linear and an inverse relationship between wage inflation and…

Q: How does Philip's curve describe the relationship of inflation and unemployment? What are the…

A: Philip's Short Curve: -   The reality between growth rates and unemployment rates is relàted to…

Q: What is the shape of the neoclassical long-run Phillips curve? What assumptions do economists make…

A: The original Philips curve explains the relationship between the inflation rate and unemployment…

Q: An economy is currently at point A in the graph below. How would this economy return to equilibrium…

A: The government set policies to stabilize the economy. The major policies are fiscal and monetary…

Q: Draw the following four graphs with an economy experiencing an inflationary gap: money market,…

A: When an economy's actual production exceeds its potential output, there is an inflationary gap that…

Q: In the equation for the Phillips curve, πξ + (μ+z) - au, what does alpha stand for? What is the…

A: Unemployment is the condition in which the employable person seeking a job but cannot find it.

Q: Phillips Curve

A: The link between unemployment and inflation is described by the Phillips curve, a theory in…

Q: Do you think the Phillips curve is a useful tool for analyzing the economy today? Why or why not?…

A: A Phillips curve portrays that there is a tradeoff that exists between the pace of joblessness and…

Q: Prior to the pandemic, economic growth had typically been accompanied by decelerating or declining…

A: ANSWER   The economic growth can be obtained by two ways - Rise in AD or Rise in AS.

Q: How can the real business cycle model explain the behavior of the money supply over the business…

A: The measure that depicts decline and growth in the nation that is being measured by its gross…