a.) Explain the difference between the short-run aggregate supply curves and the long-run aggregate supply curve. Explain
Fantastic news! We've Found the answer you've been seeking!
Question:
a.) Explain the difference between the short-run aggregate supply curves and the long-run aggregate supply curve. Explain how they are related. Why does one of them shift and the other one does not?
b.) The price of a 1-year-zero-coupon bond is 90. At maturity, the bond promises to pay a principal amount of $100. What is the corresponding yield or interest rate?
c.) When people expect that prices will fall by 4%, what is the expected inflation rate? Is the nominal interest rate greater or smaller than the real interest rate?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date: