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kipiarov [429]
1 year ago
5

Describe how changes in expected inflation impact an economy in the wake of a temporary negative supply shock

Business
1 answer:
Fed [463]1 year ago
8 0

Negative shocks reduce production and increase unemployment. Positive shocks increase production and reduce unemployment.

Unexpected change moving SRAS. A positive supply shock increases SRAS, whereas a negative supply shock decreases SRAS. A combination of slowing overall economic output (declining) and rising price levels (inflation). Stagnation occurs when SRAS decreases.

A negative supply shock leads to an increase in the natural rate of interest. If real interest rates are not adjusted, there will be excess demand in the labor market. t = 0 unless the real interest rate is adjusted. Then we move into an economy where the market is imperfect.

A supply shock is an unexpected event in which the supply of a product or commodity changes, causing a sudden change in price. A positive supply shock increases output and decreases prices, while a negative supply shock decreases output and increases prices.

Learn more about supply at

brainly.com/question/25843620

#SPJ4

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3 years ago
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The correct answer is the option B: expatriate assignment.

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Secondly, the case of Marika is a general example of expatriate assigment due to the fact that her company may have ordered her to leave for a period of time to other countries in order to find news and investigate about certain topics and in order to do that the company will pay her so she can do her job properly and then go back home and share her information with her colleagues.

4 0
4 years ago
An example of a discretionary fixed cost would be: Group of answer choices Taxes on the factory. Depreciation on manufacturing e
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10 POINTS PLEASE HELP ASAP
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I wanna say D

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hope that helps

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