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#### Sear Aplia Homework: Monetary Policy < Back to Assignment Attempts: 0

###### Economics

Sear Aplia Homework: Monetary Policy < Back to Assignment Attempts: 0.5 2 Keep the Highest: 2/4 5. Monetary policy and the Phillips curve The following graph shows the current short-run Phillips curve for a hypothetical economy; the point on the graph shows the initial unemployment rate and inflation rate. Assume that the economy is currently in long-run equilibrium. Suppose the central bank of the hypothetical economy decides to decrease the money supply. On the following graph, shit the curve or drag the blue point along the curve, or do both, to show the short-run effects of this policy. Hint: You may assume that the central bank's move was unanticipated. ? SR Pos Curve . RATE (Percent Point along PC ng.cengage.com/static/nb/ui/evo/index.html?eISBN 9780176887797&id=810114269&snapshotid=17665478 CENGAGE MINDTAP Sea Aplia Homework: Monetary Policy SR Phillips Curve Point along PC INFLATION RATE (Percent) SR Phillips Curve 2 10 UNEMPLOYMENT RATE (Percent) In the short run, an unexpected decrease in the money supply results in unemployment rate. in the inflation rate and in the WhatsApp X Homepage - Centennial College 6 Nelsonbrain - My Home 3! Mindtap.Cengage Learning ng.cengage.com/static/nb/ui/evo/index.html?eISBN 97801768877978d-8101142698 snapshotid=1766547& CENGAGE MINDTAP Q Search Aplia Homework: Monetary Policy On the following graph, shift the curve or drag the blue point along the curve, or do both, to show the long-run effects of the decrease in the money supply. SR Philips Curve . Point along PC INFUATION RATE (Percent) SR Philips Curve 0 9 2 10 12 8 UNEMPLOYMENT RATE (Percent) In the long run, the decrease in the money supply results in in the inflation rate and in the unemployment rate ng.cengage.com/static/nb/ui/evo/index.html?eISBN=9780176887797&id=8101142698.snapshotid=1766547& CENGAGE MINDTAP Q Search Aplia Homework: Monetary Policy --- SR Philips Curve . Point along PC INFUATION RATE (Percent) SR Philips Curve 0 2 12 10 UNEMPLOYMENT RATE (Percent) in the inflation rate and in the unemployment rate In the long run, the decrease in the money supply results in (relative to the economy's initial equilibrium). Grade It Now Save & Continue Continue without saving