10 Jun EVALUATE WHY POLICYMAKERS FACE A SHORT-RUN TRADE-OFF BETWEEN INFLATION AND UNEMPLOYMENT AND WHY THE INFLATION-UNEMPLOYMENT TRADE-OFF DISAPPEARS IN THE LONG RUN.
One of my favorite quotes is:
Hain’t we got all the fools in town on our side? And ain’t that a big enough majority in any town?
— Mark Twain
Now, imagine your team is the reelection campaign committee for Pat Shoo-In, who is your local representative in the U.S. House of Representatives. Your team needs to prepare Pat for an upcoming debate by creating a 15- to 20-slide Microsoft® PowerPoint® presentation that Pat can review before the debate. Your presentation should include an introductory slide as well as a slide with your conclusions. Use the bolded words/phrases shown below as titles for your slides.
Your presentation should:
Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run. Provide real-world examples of those “key facts.”
Explain economic fluctuations and how shifts in either aggregate demand or aggregate supply can cause expansions and recessions using the model of aggregate demand and aggregate supply. 5 slides
Explain how monetary policy affects interest rates and aggregate demand and howfiscal policy affects interest rates and aggregate demand. Explain the termaccommodative as it applies to fiscal and monetary policy.
Evaluate why policymakers face a short-run trade-off between inflation and unemployment and why the inflation-unemployment trade-off disappears in the long run.
Cite a minimum of three peer-reviewed sources not including our
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