Business, 26.11.2019 02:31 arnold2619

Explain whether you agree with the following statement:

"the dynamic aggregate demand and aggregate supply model predicts that a recession caused by a decline in ad will cause the inflation rate to fall. i know that the 2007 − 2009 recession was caused by a fall in ad, but the inflation rate was not lower after the recession. the prices of most products were definitely higher in 2008 than they were in 2007, so the inflation rate could not have fallen."

a. the statement is wrong because there must have been a supply shock if prices rose and there was a recession.

b. the statement is wrong because it is confusing the price level with the inflation rate.

c. the statement is correct as prices rose in 2008.

d. the statement is wrong because ad must have increased if prices were higher.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:40

Which of the following explains why the government sets a required reserve ratio for private banks? a. to allow the government to control the interest rate charged on loans. b. to prevent banks from printing too much money and causing inflation. c. to make sure banks don't run out of money when customers make withdrawals. d. to enable the regulation of risk levels in the decision process of offering loans. 2b2t

Answers: 1

Answer

Business, 22.06.2019 11:00

Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?

Answers: 1

Answer

Business, 22.06.2019 15:40

Acompany manufactures x units of product a and y units of product b, on two machines, i and ii. it has been determined that the company will realize a profit of $3 on each unit of product a and $4 on each unit of product b. to manufacture a unit of product a requires 7 min on machine i and 5 min on machine ii. to manufacture a unit of product b requires 8 min on mchine i and 5 min on machine ii. there are 175 min available on machine i and 125 min available on machine ii in each work shift. how many units of a product should be produced in each shift to maximize the company's profit p?

Answers: 2

Answer

Business, 22.06.2019 22:20

Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.

Answers: 1

Answer

You know the right answer?

Explain whether you agree with the following statement:

"the dynamic aggregate demand a...

Questions