23. Firms alter their prices based on: a. expected inflation. b. expected inflation and supply conditions. expected inflation and demand conditions. demand conditions. the previous period's aggregate supply. C. d. e. 24. According to the law of diminishing returns, the longer we live, the: a. more we will be willing to pay for medical care than for other goods and services. b. larger the burden on taxpayers to finance retirement for retirees. C. d. e. less energy we will use. less medical care we will need. lower our incomes.

23. Firms alter their prices based on: a. expected inflation. b. expected inflation and supply conditions. expected inflation and demand conditions. demand conditions. the previous period's aggregate supply. C. d. e. 24. According to the law of diminishing returns, the longer we live, the: a. more we will be willing to pay for medical care than for other goods and services. b. larger the burden on taxpayers to finance retirement for retirees. C. d. e. less energy we will use. less medical care we will need. lower our incomes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. In the RBC (Real Business Cycle) model, if businesses react to a pessimistic outlook and decrease spending, the model predicts a. the aggregate demand curve shift left. b. equilibrium inflation rates fall. c. no change in long run growth rates. d. a&b only e. all of the above 2. In the RBC (Real Business Cycle) model, if you observe unemployment levels rising, what is the likely cause? a. A negative real shock b. A negative aggregate demand shock c. A negative SRAS shock d. A&B only e. None of the above 3. Irrigation technology that changes how farmers utilize rainfall a. will have no effect on economic growth if rain fall levels do not also increase. b. represents a positive aggregate demand (AD) shock. c. may lead to higher levels of productivity growth and lower levels of unemployment. d. represents a negative real shock and will increase unemployment. e. None of the above.
3- The lowest part of a recession is referred to as its _________. a. Depression b. Boom c. Peak d. Trough
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Decreasing the number of periods in a moving average will produce: A.decreased sensitivity to real changes in the data. B. forecast accuracy. C.greater smoothing of the forecasts D.forecast stability. E.None of these answers are correct.
Demand-pull inflation Demand-pull inflation occurs when: A. input costs rise. B. unemployment is above the natural rate. C. people incorrectly forecast inflation. D. aggregate demand increases.
What is likely to be true at the peak of the business cycle? A. Real GDP, unemployment, and inflation are all likely to increase. B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing. C. Real GDP, unemployment, and inflation are all likely to decrease. D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.
Unanticipated inflation Unanticipated inflation penalises: A. those earning incomes that are taxed in nominal terms B. those who hold cash C. those who lend money at a fixed interest rate D. those earning incomes that are taxed in nominal terms, those who hold cash and those who lend money at a fixed interest rate