18 of 27 The Great Depression of the 1930's and the Great Recession from 2007 to 2009 are two major economic downturns in U.S. history. Classify each characteristic according to the downturn that it describes. The Great Depression The Great Recession It is thought to have resulted from reductions in both aggregate demand and aggregate supply. The unemployment rate peaked at just over 25%. It is thought to have resulted from reductions primarily in aggregate demand. The biggest annual decline in real GDP was 3.4%. The biggest annual decline in real GDP was 26.5%m The unemployment rate peaked at just over 10%. Policy makers used innovative strategies to increase the money supply. Answer Bank

18 of 27 The Great Depression of the 1930's and the Great Recession from 2007 to 2009 are two major economic downturns in U.S. history. Classify each characteristic according to the downturn that it describes. The Great Depression The Great Recession It is thought to have resulted from reductions in both aggregate demand and aggregate supply. The unemployment rate peaked at just over 25%. It is thought to have resulted from reductions primarily in aggregate demand. The biggest annual decline in real GDP was 3.4%. The biggest annual decline in real GDP was 26.5%m The unemployment rate peaked at just over 10%. Policy makers used innovative strategies to increase the money supply. Answer Bank

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that an economy currently experiences an decrease in both employment and real GDP. The economy is in which phase of the business cycle? Question 15 options: A) expansion B) trough C) peak D) recession
recessions have occurred roughly once every six years since the 1960s. the unemployment rate usually decreases during a recession and increases shortly after the recession ends. real GDP usually remains roughly constant during a recession and decreases shortly after the recession ends. changes in real GDP over the business cycle are largely attributable to changes in investment over the business cycle. Question 2 Which of the following is most commonly used to monitor short-run changes in economic activity? Answer the inflation rate real GDP aggregate demand aggregate supply Question 3 During recessions investment Answer falls by a larger percentage than GDP. falls by about the same percentage as GDP. falls by a smaller percentage than GDP. falls but the percentage change is sometimes much larger and sometimes much smaller Question 4 The classical model is appropriate for analysis of the economy in the Answer long run, since evidence indicates that money is not neutral in the…
Price level (GDP deflator, 2012=100) What happens in the economy when firms are no longer able to meet the demand for their output? Draw an aggregate demand curve. Label it AD. 135- Draw an aggregate supply curve. Label it AS. 125- Draw a point at the short-run macroeconomic equilibrium. Label it 1. Draw a point on the AS curve at which firms are unable to meet the demand for their output. Label it 2. 115- Prices When firms are unable to meet the demand for their output, 105- A. short-run aggregate supply is greater than long-run aggregate supply; rise 95- O B. the quantity of real GDP demanded is greater than the quantity of real GDP supplied; rise C. aggregate demand is greater than short-run aggregate supply; 85+ 18.0 19.0 20.0 21.0 22.0 rise Real GDP (trillions of 2012 dollars) D. the quantity of real GDP supplied is greater than the quantity of real GDP demanded; >>> Draw only the objects specified in the question. fall Click the graph, choose a tool in the palette and follow the…
The figure shows the fluctuations in aggregate output since 1900. Aggregate output (real GDP) in billions of 2009 dollars 17,000- 14,000- 11,000- 8,000- 6,0000 4,000 2,000 1,000 World War I 300 1900 1910 1920 Roaring Twenties The Great Depression World War II Korean War 1930 1940 1950 Recession 1980-1982 Recession 1974-1975 1960 Years Recession Vietnam Second 1990-1991 War First oil shock oil shock ..................... 1970 1980 Recession 2008-2009 Recession 2001 1990 2000 2010 2017 MyLab Economics Real-time data According to the figure, which of the following is true regarding business cycles in the United States over the last century? O A. Recessions since 1970 have been more extreme than those before 1970. O B. The recovery from the 2008-2009 recession was unusually quick. O C. The long-term trend for economic growth over time in the United States has been flat at roughly 0 percent growth. O D. Business cycles were more extreme before World War II than they were after it.