- In March 2021, the Biden administration implemented a $1.9 trillion economic stimulus package.
- In December 2021, the inflation rate was 7%.

Some economists, including economists from the Fed, were surprised about the recent high inflation rate. For example, Jason Furman wrote Why Did Almost Nobody See Inflation Coming?. Use the IS-MP + Phillips model to explain why or why not economists should have predicted the recent surge in inflation. - You must provide graphs of the relevant movements of the IS, MP, and Phillips curve to support your answer. - What types of shocks (changes in parameters) explain such movements of the curves? - Provide intuition: Give a written explanation of why are curves moving and whether we should have been able to predict the surge in inflation.

Answers

Answer 1

The IS-MP + Phillips model provides an effective way of examining how changes in monetary and fiscal policies impact the economy and inflation. Economists from the Fed were surprised about the recent high inflation rate, despite the Biden administration implementing a $1.9 trillion economic stimulus package in March 2021.

The graph below illustrates the movements of the IS, MP, and Phillips curve:The Phillips curve depicts the relationship between inflation and unemployment, and the higher the unemployment rate, the lower the inflation rate. The MP curve shows how monetary policy impacts the interest rate and the output of the economy. The IS curve illustrates the relationship between output and interest rates and depicts the level of output that corresponds to the given interest rate.In the short run, an increase in government spending (as seen in the $1.9 trillion economic stimulus package) results in higher output and a higher interest rate (through the IS curve). Higher output leads to lower unemployment and higher inflation (through the Phillips curve). The effect of monetary policy (through the MP curve) is determined by the interest rate, and if the interest rate increases, there is a decrease in the level of outputOverall, the high inflation rate is due to supply and demand shocks, including supply chain disruptions and a surge in demand as the economy reopens from the pandemic. These shocks impact the short-run Phillips curve, causing inflation to rise. Economists should have predicted the surge in inflation due to these shocks and the impact of the stimulus package on output and the interest rate. However, the magnitude of the increase was higher than expected, possibly due to the persistence of the shocks and their interaction with each other.

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Related Questions

xyz incorporated has issued 10 million new shares of stock. an investment bank agrees to underwrite these shares on a best efforts basis. the investment bank is able to sell 8.9 million shares for $32 per share, and it charges xyz $0.700 per share sold. a. how much money does xyz receive? (enter your answer in dollars, not in millions. do not round intermediate calculations.) b. what is the profit to the investment bank? (enter your answer in dollars, not in millions. do not round intermediate calculations.) c. what is the stock price of xyz? (enter your answer in dollars, not in millions.)

Answers

a. To calculate the amount of money XYZ Incorporated receives, we need to subtract the investment bank's charges from the total value of shares sold:

Money received by XYZ = (Shares sold - Bank charges) * Price per share

Money received by XYZ = (8.9 million - 0.7 million) * $32

Money received by XYZ = 8.2 million * $32

Money received by XYZ = $262.4 million

Therefore, XYZ Incorporated receives $262.4 million.

b. To calculate the profit of the investment bank, we need to subtract the total cost of shares from the total value of shares sold:

Profit to the investment bank = (Shares sold * Price per share) - (Shares sold * Bank charges)

Profit to the investment bank = (8.9 million * $32) - (8.9 million * $0.700)

Profit to the investment bank = $284.8 million - $6.23 million

Profit to the investment bank = $278.57 million

Therefore, the profit to the investment bank is $278.57 million.

c. The stock price of XYZ can be calculated by dividing the total value of shares sold by the number of shares sold:

Stock price of XYZ = (Total value of shares sold) / (Shares sold)

Stock price of XYZ = ($284.8 million) / (8.9 million)

Stock price of XYZ ≈ $32.09

Therefore, the stock price of XYZ is approximately $32.09.

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how long will the increase in food stamps last in alabama 2021

Answers

Based on the latest information released by the Alabama government, the increase in food stamps would last in 2021, "when the target of 500,000 children has been met."

Food Stamps in Alabama 2021

As a result of the coronavirus pandemic, the state government of Alabama, like many other states government in the United States, is giving out food stamps to people.

However, the rolling out of these current food stamps will last until after the target has been met, which is "500,000 children."

The food stamps benefit totaled $180 million.

Hence, in this case, it is concluded that the correct answer is "when the target of 500,000 children has been met."

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Please choose from 1 of the following individual
assignments.
1 Ikea,
2 Truckers and transport workers,
3 Amazon.
1-Ikea expects shortages due to supply-chain crisis until
mid-2022
2- Tales from the f

Answers

The analysis of IKEA's condition with regard to supply chain is given summarized as follows -

How is this so?

IKEA and other companies are facing challenges in their supply chains due to the COVID-19 pandemic.

Shortages of raw materials, increased shipping costs, and delays in deliveries have resulted in reduced product selection, higher prices, and store closures.

To address these challenges, IKEA is investing in new suppliers, improving inventory management, and exploring alternative shipping methods. Similar challenges are also faced by Walmart, Target, and Costco.

The supply chain crisis is expected to persist until at least mid-2022, requiring companies to adapt and develop new strategies.

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Full question:
See attached

Please choose from 1 of the following individualassignments.1 Ikea,2 Truckers and transport workers,3

How could government – sponsored grants for the private development of new technologies result in a lower national debt?

Answers

Answer: Making initial development private saves the government from funding all of the research.

Explanation:

A grant refers to an amount of money that is financial assistance thats given by the government or an organization to an individual or firm for a specific purpose. A grant is different from a loan as it isn't meant to be paid back.

Government award grants for the development of technologies, community projects, home insulation etc.

With regards to the question, a government – sponsored grants for the private development of new technologies may result in a lower national debt when the government makes the initial development private thereby saving the government from funding all of the research.

identify two methods by which data maybe collected from supplier, customer, government​

Answers

Answer:

Questionnaires :  Interviews

Explanation:

There are several methods of collecting data from suppliers, customers, or the government. Two of them are

1. Questionnaires

Questionnaires are documents that contain questions related to the subject of inquiry. The researchers formulate questions that, when answered with provide information that they are seeking. Questionnaires can be administered to the suppliers or customers by email,  online or hard copies. They are among the most popular and oldest data collection techniques.

2. Interviews

In this method, a researcher engages a selected respondent on one-one conservation. They discuss the subject matter in detail.  Interviews provide instant feedback and offer the interviewer a deeper understanding of the respondents' thought processes.  

as the level of activity increases: group of answer choices fixed cost per unit decrease. fixed cost per unit increase. variable cost per unit decrease. variable cost per unit increase.

Answers

As the level of activity increases, the fixed cost per unit decreases because the same amount of fixed cost is being spread over a larger number of units.

However, the variable cost per unit may increase or decrease depending on the nature of the variable cost. If the variable cost is a direct cost, then it will increase with an increase in activity. On the other hand, if the variable cost is an indirect cost, then it may decrease with an increase in activity due to economies of scale.
As the level of activity increases, fixed cost per unit decreases. This occurs because fixed costs remain constant in total, but as the activity level rises, the fixed costs are spread over a larger number of units, reducing the cost per unit. Variable costs per unit, on the other hand, remain constant regardless of the activity level.

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What is the balance on an amortized loan of $340,000 after the first payment if the interest rate is 6% with a monthly P

Answers

Answer:

I think it would be $339,672.00 but not positive

Explanation:

what are some health and safety recommendations? use theories
and/or relevant research to support the recommendations given

Answers

There are various health and safety recommendations that people should consider. Such recommendations include: Personal hygiene recommendations - The coronavirus outbreak has led to an increase in personal hygiene recommendations.

People should practice frequent hand washing, avoid touching their face, and covering their nose and mouth when coughing or sneezing. This can help in reducing the spread of the virus. Physical distancing - This is another health and safety recommendation that is being advocated for. People should avoid large crowds and maintain a distance of at least six feet from others.

This is because the virus is spread through respiratory droplets that are emitted when an infected person talks, coughs or sneezes. In conclusion, personal hygiene recommendations, physical distancing, the use of face masks, disinfection of surfaces, and vaccination are some of the health and safety recommendations that people should consider.

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What are the factors of production in economics?

Answers

These are the factors of production in economics:

LandLaborCapitalEntrepreneurship

The factor of production is resources that are what people or companies use to produce goods and services.

The factor of production in economics:

Land: natural resources used to produce services and goods including everything that comes from the land. Examples: water, oil, natural gas, forest, etc. Labor: efforts that people do to produce services and goods. Capital: tools, buildings, money, and machinery that are used to produce goods and services.Entrepreneurship: a person who can combine and use 3 other factors of production to produce goods and services.

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a $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. which of these statements is correct?

Answers

Proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.

Amortization is the process of gradually paying-off of debt through scheduled installments that include the component of principal and interest.

The amortization tables helps to keep track of amount owed and when payment is due.

The table also shows how much to be paid at required intervals (i.e. monthly, bi-monthly, quarterly etc)

As the repayment and period of payment increase, the outstanding debt keeps decreasing as well.

The rate of interest determines the amount of repayment to be made at each interval

Therefore, if the interest rate were lower, then, the repayment of principal would be lower as well.

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Which economic problem concerns you the most? Why?

Answers

Answer:

So, here's the big picture. The great economic problem is how to arrange our limited resources to satisfy as many of our wants as possible. Resources are not equally valuable in all uses, so we must choose where to allocate our resources in order to get the most value out of those resources.

Based on this table, if someone had a taxable income of $11,757, how much would they owe in taxes?

Answers

The amount that the taxpayer is owing in taxes is $2,691.05.

What does income tax payable mean?

Income tax payable refers to a business organization's tax liability to the government in the jurisdiction in which it operates. The amount of liability will be determined by the company's profitability over a given time period and the applicable tax rates. Tax payable is considered a current liability rather than a long-term liability because it must be settled within the next 12 months.

Based on the table, we are using the tax rate of 15% for the taxable income of $11,757.

The tax payable will equals to:

= 15%*$11,757 + $927.50

= $1,763.55 + $927.50

= $2,691.05

Note: We are using the attached table to solve the tax payable.

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Based on this table, if someone had a taxable income of $11,757, how much would they owe in taxes?

Question 5 of 10
In which type of economy would you expect the standards of living to be
highest?
A. Command economy
B. Traditional economy
C. Market economy
D. Planned economy

Answers

Among the different types of economies, the market economy is the type of economy where you would expect the standards of living to be the highest. A market economy is an economic system in which individuals, rather than the government, determine how resources are allocated and how goods and services are produced, distributed, and exchanged. The correct option is c.

In this type of economy, people have the freedom to buy and sell goods and services to the highest bidder. It operates on the principles of supply and demand, with market prices being determined by the interaction of buyers and sellers in a competitive market. In a market economy, the government typically has a limited role in the economy, other than ensuring that basic rules and regulations are followed.

This means that businesses are free to innovate and develop new products and services, which can drive economic growth and create new job opportunities. As a result, people in a market economy have a greater opportunity to earn a higher income, which can lead to a higher standard of living. Additionally, the market economy allows for a greater degree of specialization and efficiency, which can result in lower prices and a greater variety of goods and services for consumers. The correct option is c.

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an investment's average net income divided by its average book value defines the average:

Answers

An investment's average net income divided by its average book value defines the average return on investment (ROI).

This is a financial ratio that measures the profitability of an investment in relation to its cost. ROI is typically expressed as a percentage and is a widely used metric to evaluate the performance of an investment. The average net income is the sum of the net income over a specified period, divided by the number of periods. This figure is then divided by the average book value of the investment, which is the total value of the investment over a specified period divided by the number of periods.

This calculation provides an indication of the effectiveness of an investment in generating profits relative to its cost. A high ROI indicates that an investment is generating strong profits relative to its cost, while a low ROI suggests that the investment may not be generating sufficient profits to justify its cost.

However, it is important to note that ROI does not consider the time value of money or the risks associated with an investment. As such, it should be used in conjunction with other financial metrics when evaluating the performance of an investment.

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HELPPPKDDKKD
Question 5 of 10
Creating barriers to trade can lead to which problem?
A. Consumers will be more likely to buy luxury goods in foreign
markets
O B. Domestic businesses will face more competition from foreign
companies.
C. The country will become overly reliant on foreign countries.
OD. Other countries will retaliate by creating their own barriers to trade.

Answers

Creating barriers to trade can lead to Other countries will retaliate by creating their own barriers to trade problem.

What are the reasons of trade barriers?

Governments erect trade barriers to control foreign trade and safeguard domestic industries. Implementing trade barriers is done for a variety of reasons, including: 1. Protecting domestic industries: To shield their domestic industries from foreign competition, governments may impose trade barriers. Subsidies, quotas, or tariffs can all be used to achieve this. 2. National security: Trade restrictions may be put in place for the protection of the nation, such as by limiting the export of materials or sensitive technology that could be used for military purposes. 3. Environmental issues: To protect the environment, governments may impose trade restrictions on imports of products that do not adhere to certain environmental standards. 4. Anti-dumping measures: To stop businesses from flooding the market with their products at below-market prices, governments may impose tariffs or quotas.

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The most common time frame individuals use when developing a budget is _____. A) Yearly B) Monthly C) Daily D) Weeklyeco​

Answers

Answer:

Monthly

Explanation:

in the insurance industry, state guarantee funds have a number of important differences from deposit insurance. which of the following is not one of these differences? pro rata contributions by the surviving institutions are often capped at 2 percent of premium income. no permanent guarantee fund exists for the insurance industry. they're run and administered by private insurance companies themselves. in the event of a failure, the other insurers operating in the state are levied a fee based on the premium income derived within the state. small policy holders of the failed institution experience no delay when receiving the cash value of their policies.

Answers

In the insurance industry, state guarantee funds have a number of important differences from deposit insurance. The statement that is NOT one of these differences is: "small policyholders of the failed institution experience no delay when receiving the cash value of their policies."

A "they're run and administered by private insurance companies themselves" is not one of the differences between state guarantee funds in the insurance industry and deposit insurance.

The other differences include the fact that pro rata contributions by surviving institutions may be capped at 2% of premium income, there is no permanent guarantee fund for the insurance industry, in the event of a failure other insurers in the state are levied a fee based on premium income, and small policyholders of the failed institution experience no delay when receiving the cash value of their policies.

Thus,  in the insurance industry, state guarantee funds have a number of important differences from deposit insurance. The statement that is NOT one of these differences is: "small policyholders of the failed institution experience no delay when receiving the cash value of their policies."

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The chart shows a sample paycheck stub.

A 2-column table has 6 rows. The first column has entries Salary, Federal income tax, social security tax, medicare tax, state income tax, and net pay. The second column has entries 1106.45, 122.67, 68.60, 16.04, 10.33, and 888.81.

The chart shows that federal and state taxes are

added to employee pay.
withheld from employee pay.
refunded in employee pay.
filed through employee pay.

Answers

Answer:

withheld from employee pay.

Explanation:

The term withheld means that the employer deducts the taxes from the employee's pay when processing the payroll. By withholding, the money meant for taxes will not get to the employees' accounts.

The employee's gross pay is $1,106. 45. the next pay is $888.41. the employer must have made some deductions that have reduced the net pay to $888.41. These deductions are the tax amounts that have been withheld by the employer.

a perfectly competitive firm earns a profit when price is

Answers

A  perfectly competitive firm earns a profit when price is above the average total cost.

A perfect competitive firm is a firm that operates in a perfectly competitive market. A perfectly competitive market is a market where the goods and services exchanged are homogenous. There is perfect information in this type of market.

In the long run, firms in a perfect competition earn only a normal profit. If in the short run, firms are earning economic profit, new firms would enter into the market. This would wipe out economic profit. In the short run, if an economic loss is been made, firms would leave the industry.

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Your parents tell you that on your 22nd birthday, they would like for you to get your own health insurance. You are very healthy, are not
taking any prescription medicines, and generally only see your doctor for your annual physical. What type of health insurance is likely to
be best for you?
A low deductible plan with a high monthly premium
O A high deductible plan with a low monthly premium
OA low deductible plan with low co-pays on prescription medicine with high monthly premiums
O The health insurance plan with the highest monthly premium to ensure high quality service

Answers

Answer:

A high deductible plan with a low monthly premium would offer you the most cost-effective option.

Explanation:

Since you are healthy, not taking any prescription medicines, and only visiting your doctor for an annual physical, you have relatively low healthcare needs. In this case, a high deductible plan with a low monthly premium would offer you the most cost-effective option.

With a high deductible plan, you will have a higher out-of-pocket expense before the insurance coverage kicks in. However, since you have minimal healthcare needs, this higher deductible is less likely to be a financial burden. The low monthly premium allows you to save on the cost of insurance since you don't anticipate needing extensive coverage.

what happens to the APR after 10 months

Answers

Answer: Once your 0% introductory APR period is over, you'll be charged a new interest rate and may even owe interest on any unpaid balance from before.

Explanation:

i think that's what you mean

Dave Ramsey's investing principles.

Answers

Answer:

Here is Dave's investing philosophy: Get out of debt and save up a fully funded emergency fund. Invest 15% of your income in tax-favored retirement accounts. Invest in good growth stock mutual funds

Bellandro Brewery recently became certified as an ISO 14001 company. Which of the following criteria would decision makers evaluate for this award?

Answers

Answer:

environmental improvement plans at the brewery

Explanation:

An individual invested $1,000 in a bond with a coupon payment of $12. the price of the bond increased to $1,400. what is the rate of return on this bond?

Answers

The answer is 41.2%

Rate of Return = (coupon income +price change) / investment

ROR = ($12+$400)/$1,000 = .412 or 41.2%

In the world of finance, a bond is a kind of security where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the principal (i.e., amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a certain amount of time.

Semiannually, annually, and less frequently at other times, the interest is typically due at set intervals. Consequently, a bond is a type of borrowing or IOU. Bonds give the borrower access to external capital for financing current expenses or, in the case of government bonds, long-term investments.

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discuss how businesses can use mind mapping and brainstorming to identify new and innovative business opportunities​

Answers

Answer: A mind map can be used by businesses to brainstorm thoughts and ideas organically.

Explanation:

By plotting ideas into a diagram, you can turn often complex, monotonous information into an organized, colorful, and memorable centralized format.

An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after a(n) ______ audit.

Answers

An evaluation and unbiased opinion of the accuracy of a firm's financial statements can be obtained after an indepenfent audit.

What is independent audit?

An independent audit  can be described as the examination of the financial records, as well as the accounts, business transactions, accounting practices, as well as the internal controls of a charitable nonprofit by an "independent" auditor.

It should be noted that the  evaluation and unbiased opinion of the accuracy of a firm's financial statements is oner od the thing that can be associated to the indepenfent audit.

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What could this sign use on the left side.

Answers

Answer:

noce

Explanation:

a $50 million increase in investment spending will eventually cause equilibrium real gdp to: a. decrease by $50 million. b. increase by $50 million c. increase by more than $50 million. d. increase by less than $50 million.

Answers

A investment spending will eventually cause specific information about the MPC, determine the exact magnitude of the increase is ( c. increase by more than $50 million).

To determine the impact of a $50 million increase in investment spending on equilibrium real GDP,  to understand the concept of the multiplier effect.

The multiplier effect refers to the phenomenon where an initial change in spending creates a ripple effect, resulting in a larger overall impact on the economy.

The multiplier effect occurs because when businesses increase investment spending, it leads to increased demand for goods and services.

This increased demand, creates income for the producers of those goods and services, then spend a portion of that income on other goods and services, creating further income and demand. This process continues, with each round of spending generating additional rounds of income and expenditure.

The size of the multiplier effect depends on the marginal propensity to consume (MPC), which is the proportion of additional income that individuals and businesses spend.

The multiplier effect calculated :

Multiplier = 1 / (1 - MPC).A make some general observations based on typical values of the MPC.

If the MPC is less than 1, the multiplier will be greater than 1. This means that an initial increase in investment spending will lead to a larger overall increase in real GDP.

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Modulation requires a change of key for a whole piece of music.
TRUE or FALSE

Answers

Answer:

TRUE! HOPE THIS HELPS! :)

Explanation:

Answer:

FALSE is the answer

Explanation:

Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message is known as

Answers

Answer:

it is commonly called advertising

Explanation:

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising is paid, nonpersonal communication through various media by business firms, nonprofit organizations and individuals who are in some way identified in the advertising message.

JSTOR.org (siting my evidence)

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