What do you enjoy doing? What did I major in?
Answer: The short run Phillips curve intersects the long run Phillips curve.
Explanation: The Phillips curve states that unemployment and inflation have an inverse relationship. This means that they move in opposite directions, I.e. If inflation increases then unemployment decreases and vice versa.
In the graph attached the short run Phillips curve is L - shaped and shows the inverse relationship between both variables initially. The long run Phillips curve is a vertical line, and shows that unemployment rate remains steady regardless of inflation rate, in the long term. Where these 2 lines intersect is where actual inflation and expected inflation are the same.
The reason why the state of Texas will never have a personal income tax in the future is because Governor Stephen Bullock of Montana proposed a constitutional amendment that effectively gave the electorate a veto over any proposal for an income tax.<span> </span>
Answer:
and net exports will both fall.
Explanation:
The real interest rate can be regarded as rate of interest that is received by an investor or lender after inflation has been allowed, we can describe this with Fisher equation, that real interest rate is regarded as approximately difference of nominal interest rate and the inflation rate. Net exports can be regarded as measure of total trade of goods and services of a particular country. It can be regarded as balance of trade, and this one that remains after deduction of import value of a country from the export value of the country which is been calculated for a particular period.In instance, whereby a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. Then, the U.S. real interest rate and net exports will both fall.
<span>When you are modeling economic booms and busts, the biggest difference between modeling economic busts and booms is that there is basically no issue of very rigid nominal wages when one is modeling these different types of booms.</span>