In the Philip's curve the long run usually refers to the vertical line and the rate of unemployment the short run Philips curve denotes inflation and is in L shaped and the relationships indicates the trade-off between the inflation and the unemployment
Explanation:
This curve in general shows the relationship between the rate of increase in the nominal wages and the rate of unemployment and usually lower the rate of inflation higher will be the wages allotted and it will be the vice versa
There will be a shift in the Philips curve when there is a hike in the oil prices abroad and this will cause the curve to shift leftwards so in the long run it will indicate the unemployment rate and in the short run it will indicate the inflation rate
Answer:
I just asked a question i'll give you brainliest if you can answer it correctly.
Explanation:
Answer: 5
Explanation:
The velocity of circulation is the average number of times that each dollar can be used for the purchase of goods and services in a year.
From the information given in the question, the velocity of circulation will be:
= Nominal GDP / Quantity of money
= $2000 / $400
= 5
Therefore, the velocity of circulation is 5.
Answer;
Based on Supply and demand; If a more people want a commodity, it is in greater demand, thus the price will be higher, and if less people want a commodity, the price will be lower.
Explanation;
In a market the price is determined using the law of demand and supply in that particular market. Demand is the quantity of goods that consumers are willing and able to buy at a given price while supply is the quantity supplied by suppliers at a particular price.
If a more people want a commodity, it is in greater demand, thus the price will be higher, and if less people want a commodity, the price will be lower.
Answer:
The answers are:
- decrease; increase
- moral hazard; increase
Explanation:
When you deposit money in your bank account, you know that the money is safe ad even f the bank goes bankrupt, you will be able to get your money bank. That is exactly what deposit insurance does, it increases the public trust in banks.
But if bank customers feel too safe about deposit insurance, they might forget to look for the best bank possible to hold their savings. If it doesn't matter what bank you use to save money, since you are guaranteed to get your money back, you might choose any bank without even checking how its performing.
