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LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
Country risk has effect on
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
The left side of NAIRU suggests
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
The government spending will be targeted to shift NAIRU to the
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
Stagflation is more related with cost push than demand pull inflation
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
LM (Liquidity Preference) is more related to monetary policy because monetary policy has direct effect on interest rates
IS (Investment-Saving) curve is more related to monetary policy because monetary policy has direct effect on saving rates
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
One strategy to reduce the inflation pressure potential is increasing real GDP potential
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
Cost push inflation suggest that aggregate supply curve shift to the right while the aggregate demand curve does not shift.
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
Demand pull inflation suggest that aggregate supply curve does not shift while the aggregate demand curve experience diagonal shift
LG 1. Knowledge Comprehension
LO 1.1. Generate knowledge of core concept and theory
If the government has an inflation target of 3% p.a., and the inflation target is reached with an unemployment rate of 5%. The country experiences full employment.