DD
Dorette Djoufack
Answers (2)
DD
Answered
Refer to Figure 18.2.1 above. In which of the following instances is the cost of reducing emissions less the harm done from emissions?
A) When the level of emissions is 6 units
B) When the level of emissions is 12 units
C) When the level of emissions is 18 units
D) In all of the cases above
A) When the level of emissions is 6 units
B) When the level of emissions is 12 units
C) When the level of emissions is 18 units
D) In all of the cases above
On May 09, 2024
C
DD
Answered
Suppose that the Fed unexpectedly pursues contractionary monetary policy. What will happen to unemployment in the short run? What will happen to unemployment in the long run? Justify your answer using the Phillips curves.
On May 06, 2024
In the short run, unemployment will rise, because, contractionary policy reduces actual inflation and so moves the economy down along the Phillips curve. In the long run, the economy will return to its natural rate of unemployment as a reduction in expected inflation shifts the short-run Philip curve left.