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123kduncan 123kduncan
wrote...
6 years ago
Cost-push inflation occurs when a nation's:
 a. Aggregate supply rises, causing rising prices and rising unemployment.
  b. Aggregate supply rises, causing rising prices and falling unemployment.
  c. Aggregate demand rises, which leads to a decrease in aggregate supply curve and an increase in prices.
  d. Aggregate supply falls, causing rising prices and rising unemployment.



Question 2 - Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period rises and GDP Price Index rises.
  b. The quantity of real loanable funds per time period falls and GDP Price Index falls.
  c. The quantity of real loanable funds per time period rises and GDP Price Index falls.
  d. The quantity of real loanable funds per time period and GDP Price Index remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.
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brandelynbrandelyn
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Posts: 361
Rep: 2 0
6 years ago
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123kduncan Author
wrote...
6 years ago
Were some really tough homework problems!
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