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vampirchik [111]
2 years ago
6

Suppose a self-regulating economy is in a recessionary gap at the time the Fed enacts expansionary monetary policy. Furthermore,

suppose the Fed is able to enact expansionary monetary policy in such a precise way that the economy moves from a recessionary gap into long-run equilibrium, if there are no other changes in the economy. The combination of expansionary monetary policy and a self-regulating economy will cause
Business
1 answer:
anzhelika [568]2 years ago
8 0

The combination of expansionary monetary policy and a self-regulating economy will cause real GDP will rise to the level above natural real GDP and the recessionary gap would hence turn into an inflationary gap situation.

<h3>What do you mean by monetary policy?</h3>

Monetary Policy refers to the control of the quantity of money available in an economy through which new money is supplied.

The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.

Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.

Learn more about Monetary policy here:

brainly.com/question/3817564

#SPJ1

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In marketing, what are the five P's used for?
Rufina [12.5K]

Answer:

A

Explanation:

5 0
3 years ago
Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A wi
Ne4ueva [31]

Answer:

Option A is correct because the level of saving in percentage for company A is 2% (5000/250000). Whereas the level of saving in the company B is 1.5% which is lower than the savings of company A. This will increase the standard of life in the long run because greater the savings the greater is the amount invested in Financial assets which will decline the interest rate as the funds for investment are in excess it will decline the demand for loans. This investment will earn its investor more which will change his standard of life.

Remember standard of living is measured by:

GDP per capita= Total GDP/ Total population

So if the GDP per person is higher it means his saving are lower. And if the level of saving are lower then the standard of living will decline because the money available for investment is lower in amount. This will not save him enough to maintain his standard of living.

So its true because the level of saving rate of company A is higher this means the standard of living in the near future will also increase with faster pace.

8 0
3 years ago
S) Barkley and James cannot attend training during the exercise. They must attend before 4 May or after 25 May. Identify the con
KengaRu [80]

Answer:

Revealed by

Explanation:

The revealed by is the concept that is applied in the case when the classification of the derivatives for the new document is inbuilt and get the authorized source for classification into a new document plus the same is to not seen in the source document

Therefore the concept i.e used to determine the classification of derivatives is revealed by concept

4 0
3 years ago
"The price of coffee increases by 10%, and as a result, Alex purchases fewer donuts. This suggests that to Alex, coffee and donu
Travka [436]

Answer:

Complementary goods

Explanation:

Complementary goods are goods that are demanded for together or consumed together. If the demand for one of the complementary goods increases, the demand for the other good increases and vice versa.

If the price of coffee increases by 10%, the demand for coffee and doughnut would fall according to the law of demand.

I hope my answer helps you.

8 0
3 years ago
What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 200 shares of Stoc
ycow [4]

Based on the information given the portfolio weights for a portfolio are:

Stock A 0.6187; Stock B 0.3815.

First step

Shares          Price per share Total value

Stock A 145           $47                       6,815

Stock B 200          $21                       4,200

Total                                                     11,015

Second step

Portfolio weights

Stock A [ 6,815 / 11,015 ] 0.6187

Stock B [ 4,200 / 11,015 ] 0.3813

Inconclusion the portfolio weights for a portfolio are: Stock A 0.6187; Stock B 0.3815.

Learn more here:brainly.com/question/19579061

8 0
3 years ago
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