Monetary policy in flosserland in flosserland, the department of finance is responsible for monetary policy. flosserland has had an inflation rate of 25% for many years. refer to monetary policy in flosserland. suppose flosserland has had the same inflation rate for a long time. which, if either, of the following ideas imply that the unemployment rate in flosserland would be above the natural rate. a. the classical dichotomy, but not the long run phillips curve b. the long-run phillips curve, but not the classical dichotomy c. both the classical dichotomy and the long-run phillips curve d. neither the long-run phillips curve nor the classical dichotomy

Consider the market for gas-powered small cars. assume gas-powered small cars are a normal good. for each of the following events, identify which of the determinants of demand or supply are affected. if demand is unaffected by this event because it creates only a supply change, select the “none” option under the “demand determinant” column. similarly, if supply is unaffected by this event because it creates only a demand change, select the “none” option under the “supply determinant” column. event demand determinant supply determinant people decide to have more children. the price of electric small cars falls. the discovery of a new source of iron ore lowers steel prices. an economic recession lowers people’s wealth. a number of major car dealers decide to switch from selling gas-powered cars to selling electric cars. show the effect of the following event on the market for gas-powered small cars: people decide to have more children for each of the four independent situations, prepare the journal entries to record the exchange on the books of each company.