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vampirchik [111]
3 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]3 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

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Suppose you recently sold your used car. Assume that no new production was involved in this transaction.
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Answer:

Assume that no new production was involved in this transaction.

Wealth was created because the value of your willingness to sell was _____ (equal to, less than, greater than) the buyer's willingness to pay.

Suppose you sold the car for $18,000.

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When building a new residential development or mall, a national real estate organization typically does not remove many trees, b
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The answer is: B) sustainability

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5 0
4 years ago
Analyzing Accounts Receivable Changes The comparative balance sheets of Sloan Company reveal that accounts receivable (before de
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Cash was collected from customers during the year was $ 104,100

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Thus, allowance for uncollectible accounts should have increased by $3,000. But it increased by $2,100.

Therefore, uncollectible accounts receivable of $900 ($3,000 - $2,100) were written off during that year.

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Many healthcare companies are making adaptations to meet the needs of aging population as the demand for medical services and pr
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Demographics consist of more than the gender and age of consumers. It represents a change in the properties of a population during the years which experts can measure. This change can include fluctuation of the number of individuals from an ethnic group, gender ratio, or many other attributes such as in this case, age ratio.

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3 years ago
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