Answer:
C) over time inflation will fall back down to the inflation target.
Explanation:
In the scenario, there is a positive aggregate demand shock which will lead to inflation because prices of goods will rise as aggregate demand increases with supply being unchanged
<u>A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. </u>
<u>Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.</u>
Answer:
Collective and serial
Explanation:
Collective experience refers to a type of experience that happened to all members of a certain social group. (In the case above, ALL new employees have to attended the full-day session).
Serial experiences to a form of similar experiences that happened through an extended period of time. (When we see the excerpt above notice how The event is being done once a week for the next two months)
Answer:
skilled workers take time to train
Explanation:
this means that a lot of time is spent on training which te would have been invested in production
In economics, the principle of absolute advantage refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.
hope it helps
