the nominal interest rate is 15% and the inflation rate is 4% what is the real...

Transcribed Image Text:

the nominal interest rate is 15% and the inflation rate is 4% what is the real interest rate? If real interest rates decrease, will Investment rise or fall? Draw a diagram of Aggregate Demand and Short-Run Aggregate Supply in the space provided below. Make sure you label the axes completely. Show on the diagram what would happen if there was massive country-wide increase in skilled workers. At the side of the diagram indicate if equilibrium prices, Y and the unemployment rate would be rising or falling (put an up or down arrow next to the abbreviations). P PYU UR Five an example of sumeining that woulu we considered contractionary monetary policy. the nominal interest rate is 15% and the inflation rate is 4% what is the real interest rate? If real interest rates decrease, will Investment rise or fall? Draw a diagram of Aggregate Demand and Short-Run Aggregate Supply in the space provided below. Make sure you label the axes completely. Show on the diagram what would happen if there was massive country-wide increase in skilled workers. At the side of the diagram indicate if equilibrium prices, Y and the unemployment rate would be rising or falling (put an up or down arrow next to the abbreviations). P PYU UR Five an example of sumeining that woulu we considered contractionary monetary policy.

Answer rating: 100% (QA)

Aggregate Demand and Supply Diagram The diagram should include an Aggregate Deman... View the full answer