To Mexican Americans is he answer
i hope this helps! :D
Answer:
an inflationary increase in the price level.
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country.
In order to boost economic growth, a monetary policy is implemented to increase money supply (liquidity). Also, it is used to prevent inflation by reducing money supply.
An inflationary gap, also referred to as an expansionary gap in economics, is typically used for measuring the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. Consequently, this situation causes the price of goods and services to go up with a low income level among the people living in the country.
A budget deficit is the amount by which spending exceeds income.
All other factors held constant or all things being equal (ceteris paribus), an increase in government's budget deficit drives the interest rate up.
Generally, when there's a deficit in government budget, they resort to issuing more bonds or borrowing money from creditors. These creditors are likely to be sceptical about the government's ability to repay the debt and as such would increase the interest rate.
Hence, an inflationary increase in the price level of goods and services is not much of a danger if the U.S. economy is producing at a level that is substantially less than potential gross domestic product (GDP) and the aggregate demand is being increased by government's budget deficits.
Answer:
15 blankets; 35 meals
Explanation:
First, we compute Opportunity Cost (OC).
In Caninia,
OC of blanket = 8/2 = 4 meals
OC of meals = 2/8 = 0.25 blanket
In Felinia,
OC of blanket = 1/5 = 0.2 meals
OC of meals = 5/1 = 5 blanket
Since Felinia can produce blankets at lower OC (0.2 < 4), so
Felinia has comparative advantage and specializing in blankets.
Total blankets produced with trade = 5 x 10
= 50
Since Caninia can produce meals at lower OC (0.25 < 5), so
Caninia has comparative advantage and specializing in meals.
Total meals produced with trade = 8 x 10
= 80
After trade,
Total blankets produced = 10 + 25
= 35
Decrease in blanket output = 50 - 35
= 15
Total meals produced = 40 + 5
= 45
Decrease in meals output = 80 - 45
= 35
Explanation:
A cost-of-living index is a theoretical price index that measures relative cost of living over time or regions. It is an index that measures differences in the price of goods and services, and allows for substitutions with other items as prices vary.
