If the economy is in long run equilibrium with 6% inflation and 3% economic growth, and the federal reserve permanently decreases the rate of money supply growth, the long run result will be….

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08-11-2022
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If the economy is in long run equilibrium with 6% inflation and 3% economic growth, and the federal reserve permanently decreases the rate of money supply growth, the long run result will be….

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pragyavermav1 pragyavermav1 · Answer 1 · 2022-11-14T03:47:44-05:00

If the economy is in long-run equilibrium with 6% inflation and 3% economic growth, and the federal reserve permanently decreases the rate of money supply growth, the long-run result will be A) the Solow Growth Curve shifts to the right.

A frame is said to be in equilibrium if it does now not reveal an exchange in its rest or uniform movement, even below the effect of external forces. Forms of equilibrium: strong equilibrium. Unstable equilibrium.

The three characteristics of equilibrium are: The ahead rate and the reverse charge need to be identical. The value of the equilibrium regular does now not exchange at a given temperature but adjusts as the price of temperature adjustments. There's no effect on equilibrium by using a catalyst.

Equilibrium is achieved when the forward charge of a response is identical to the opposite fee of a response. This very simple precept may be discovered in a closed container of liquid. In the box the liquid has vapor stress this is prompted by using the pressure above the liquid.

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Question: If the economy is in long-run equilibrium with 6% inflation and 3% economic growth, and the Federal Reserve permanently decreases the rate of money supply growth, the long-run result will be...

A) the Solow Growth Curve shifts to the right.

B) An inflation rate of less than 6%, and an economic growth rate of 3%.

C) An inflation rate greater than 6% and economic growth of 3%.

D) An inflation rate greater than 6% and economic growth greater than 3%.

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