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Using the AD/AS and the Phillips Curve Models,demonstrate Graphically and Explain

question 159

Essay

Using the AD/AS and the Phillips curve models,demonstrate graphically and explain in words the changes to output,unemployment and inflation caused by an expansionary fiscal policy.Show the short-run and long-run adjustments.Assume that the economy is initially in both short-run and long-run equilibrium,and that expected inflation is 2%.


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Consumer Protection Legislation

Laws designed to ensure fair trade for consumers and to protect them from harmful practices by businesses.

Sale of Goods Act

A law that regulates the sale of goods, specifying the rights and duties of the buyer and the seller.

Negotiable Instrument

A document in writing that promises to pay a certain sum of money, either upon request or at a predetermined date, with the person responsible for payment identified on the document.

Unconditional Promise

A commitment or guarantee that is not subject to any conditions or stipulations.

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