Classify each of the following as a supply or demand shock. Use a graph to show the
Question:
Classify each of the following as a supply or demand shock. Use a graph to show the effects on inflation and output in the short run and the long run.
a. Financial frictions increase.
b. Households and firms become more optimistic about the economy.
c. Favourable weather produces a record crop of wheat and corn in the Prairie provinces.
d. Steel workers go on strike for four weeks.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 69% (13 reviews)
a Negative demand shock An increase in financial frictions reduces aggregate demand Output and i...View the full answer
Answered By
Shubhradeep Maity
I am an experienced and talented freelance writer passionate about creating high-quality content. I have over five years of experience working in the field and have collaborated with several renowned companies and clients in the SaaS industry.
At Herman LLC, an online collective of writers, I generated 1,000+ views on my content and created journal content for 100+ clients on finance topics. My efforts led to a 60% increase in customer engagement for finance clients through revamping website pages and email interaction.
Previously, at Gerhold, a data management platform using blockchain, I wrote and published over 50 articles on topics such as Business Finance, Scalability, and Financial Security. I managed four writing projects concurrently and increased the average salary per page from $4 to $7 in three months.
In my previous role at Bernier, I created content for 40+ clients within the finance industry, increasing sales by up to 40%.
I am an accomplished writer with a track record of delivering high-quality content on time and within budget. I am dedicated to helping my clients achieve their goals and providing exceptional results.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
The Economics of Money Banking and Financial Markets
ISBN: 978-0321785701
5th Canadian edition
Authors: Frederic S. Mishkin, Apostolos Serletis
Question Posted:
Students also viewed these Business questions
-
Classify each of the following as a business product or a consumer product: a. Computer workstation b. Tube of toothpaste c. Fleet of delivery trucks d. Bulk order of flour e. Diamond earrings f....
-
Classify each of the following as a field, record, or file interrogation: a. Limit check b. Validity check c. Version check d. Missing data check e. Sign checks f. Expiration date check g....
-
Classify each of the following as a financial asset or an operating asset: a. Cash in a checking account used to pay bills. b. Accounts receivable. c. Finance receivables for an automobile firm. d....
-
In his book Future Shock, Alvin Toffler divided humanitys time on earth into 800 lifetimes. The 800th lifetime, in which we now live, has produced more knowledge than the previous 799 combined, and...
-
A 99- resistor has a current of 0.82 A and is connected in series with a 110- resistor. What is the emf of the battery to which the resistors are connected?
-
A strain of long-stemmed roses has an approximate normal distribution with a mean stem length of 15 inches and standard deviation of 2.5 inches. a. If one accepts as "long-stemmed roses" only those...
-
Do insurance companies use race as a determining factor when making insurance available? Fienberg (1985) gathered data from a report issued by the U.S. Commission on Civil Rights about the number of...
-
The Ad Guys Inc. provides advertising services for clients across the nation. The Ad Guys is presently working on four projects, each for a different client. The Ad Guys accumulates costs for each...
-
Find the present value for the amount given in the table. Amount $3977.23 Nominal Rate 7.4% Frequency of Conversion semi-annually Time 14 years The present value is $ (Round to the nearest cent as...
-
You are willing to pay $15,625 now to purchase a perpetuity that will pay you and your heirs $1,250 each year, forever, starting at the end of this year. If your required rate of return does not...
-
Predict the effect of an increase in sales taxes on both the aggregate supply and demand curves, showing the effects on output and inflation. Use a graph of aggregate supply and demand to demonstrate.
-
During the first half of 2010, Bank of Canada officials discussed the possibility of increasing interest rates as away of fighting potential increases in expected inflation. If the public came to...
-
1. Why was Ireland in trouble? 2. What happened to Irish debt? To Irish bond ratings? Interest rates? 3. How did the Irish crisis highlight problems with the Eurozone? 4. What must Ireland do to...
-
an exception occurs in a try - catch block, the code in the finally clause Finis O a . . is not executed if the exception is caught O b . . is executed O c . . is not executed O d . . may be executed
-
A Line AB BC CA sum The azimuth of AB is given as ##12'25" where is the last two digits of the student number. Given: Interior Angle A =40, Interior Angle B= 110 and Interior Angle C = 30. Length AB=...
-
For the 2D truss of the figure: . . . Find all the support reactions (Pinned support at A and Roller at Identify all zero-force members. F). Draw the Free Body Diagram. Find the axial forces of all...
-
What is a fundamental difference between the DAC and MAC formal models? a . . Who owns subjects b . . The use of classifications and permissions to enforce access control. c . . Who owns objects. d ....
-
7. [-/1.25 Points] The O'Neill Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special-style order, the company...
-
Following are the amounts of the assets and liabilities of New World Travel Agency at December 31, 2012, the end of the current year, and its revenue and expenses for the year. The retained earnings...
-
The following selected accounts and normal balances existed at year-end. Notice that expenses exceed revenue in this period. Make the four journal entries required to close the books: Accounts...
-
In general, how does credibility (or lack thereof) affect the aggregate supply curve?
-
As part of its response to the global financial crisis, the Fed lowered the federal funds rate target to nearly zero by December 2008 and quadrupled the monetary base between 2008 and 2014, a...
-
Why did the oil price shocks of the 1970s affect the economy differently than the oil price shocks of 2007?
-
A project that is expected to generate annual after-tax cash flows of $2,200 for each of the next 20 years. The project's cost of capital is 8.5 percent and it has an IRR of 9.058 percent. What is...
-
Gabbie has to decide between the following two choices: Option 1: Get $320 with probability 35.97%, and $84.15 with the complement probability. Option 2: Get $94.95 with 100% probability. Her utility...
-
Why are unpaid accruals a "temporary" source of cash? Please give some details and examples.
Study smarter with the SolutionInn App