On the graph above, suppose point G is on the short-run aggregate supply curve ? = 2.5 + 2 × (Y - 22 ) and aggregate demand curve Y = 29.25 - 0.5?
If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be ________. A) 11.5
B) 14.5
C) 8.5
D) 2.5
E) none of the above
A
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In a market for apples, a consumer purchases 30 pounds when the price of apples is $1 per pound and the consumer's income is $5,000 per month
When the price of apples increases to $2 per pound, without any change in the consumer's income, he decides to purchase only 15 pounds of apples. Suppose, after a given period of time, the consumer's income falls to $3,000 per month. His consumption of apples also decreases to 10 pounds. Using a graph, illustrate the difference between change in quantity demanded and the change in demand for apples.
The winner of the Mega Millions lottery game can choose to accept a one-time payout of $163.68 million or receive $11 million per year for 20 years. Using the tables shown and assuming the interest rate is 3 percent, the state:Annuity Table(value now of $1 Per year To be received for x-years) Present Value Table(Value now to $1 to be received x-years un the future) Year3%4%6%Year3%4%6%108.538.117.36100.740.680.531511.9411.129.71150.640.560.422014.8813.5911.47200.550.460.313019.6017.2913.76300.410.310.17
A. prefers to pay over time because it will save money. B. probably does not care-it has set the lump sum equal to the present value of the payments over time. C. prefers to pay the lump sum because it saves about $100 million. D. probably does not know which is better because the two cannot be compared.