Consider the information in the following table for the first two years of the Great Depression (the values for real GDP and potential GDP are in 2012 dollars) Potential Real GDP $1.056.6 billion $1,148.9 billion Year 1929 1930 OA. potential GDP increased SOB. the price level decreased. OC. actual real GDP decreased. OD. the unemployment rate increased Actual Real GDP $1.109.4 billion $1,015.1 billion Sources: U.S. Bureau of Labor Statistics; and U.S. Bureau of Economic Analysis. a. The information in the table is different from what we would expect to have happened in a recession in the past 50 years because Price Level 9.4 91

Consider the information in the following table for the first two years of the Great Depression (the values for real GDP and potential GDP are in 2012 dollars) Potential Real GDP $1.056.6 billion $1,148.9 billion Year 1929 1930 OA. potential GDP increased SOB. the price level decreased. OC. actual real GDP decreased. OD. the unemployment rate increased Actual Real GDP $1.109.4 billion $1,015.1 billion Sources: U.S. Bureau of Labor Statistics; and U.S. Bureau of Economic Analysis. a. The information in the table is different from what we would expect to have happened in a recession in the past 50 years because Price Level 9.4 91

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 1 If the unemployment rate is 10%, while the number of employed individuals is 900, what is the labor force? A. 810. B. 900 C. 990 D. 1000 Question 2 When an economy experiences INFLATION, which of the following measures of the GDP grows at a faster rate? A. Nominal GDP B. Real GDP C. None of the above, as both, Nominal and Real GDP measures expand at the same rate. Question 3 Consider the following ecnomy: Total Population = 1000 Total Adult Civilian (non-institutionalized) Population = 700 Number of people employed = 200 Number of people without jobs but looking for work = 80 What is the labor force participation rate in this economy? A. 28% B. 40% C. 70% D. None of the above Question 4 A Japanese firm manufactures cars in the US. Assume that each car sells for $20,000 to a consumer in the US. Also assume that from the sale of each car the Japanese manufacturer earns $2000 in profits and remits those to the holding company in Japan. Assume that the car is manufactured with…
6. TheGDP gap and the consequences of unemployment On the following graph, the black line shows potential real GDP and the blue line shows actual real GDP for a hypothetical country from 1990 to 2010. Use the green quadrilateral (triangle symbols) to shade the area between actual and potential real GDP that represents the positive GDP gap. Then use the purple quadrilateral (diamond symbols) to shade the area between actual and potential real GDP that represents the negative GDP gap. 10 Actual Real GDP Z Potential Real GDP GDP (Billions of 2000 dollars) 9 8 LO A 2 1 0 1990 1994 1998 YEAR 2002 2006 2010 Positive GDP Gap Negative GDP Gap (?)
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Explaining short-run economic fluctuations
Potential GDP Select one: A. never changes. B. increases as the price level rises. C. is the level of real GDP when unemployment is zero. D. does not vary with the price level. E. increases as the quantity of money in the economy increases.
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I cannot figure out #c please help me!! 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.
Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Year 1 2 3 Expenditures on food $5,000 $5,800 $6,600 Consumer price index 160.0 168.0 x Refer to Table 24-4. Will's Year 1 food expenditures in Year 2 dollars amount to a. $5,500. b. $5,250. c. $4,975. d. $3,625.
Please help with this practice question
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In the graph you've just explored, when did the most recent expansion begin? The most recent expansion began _____. A. At the trough in 2009 B. at the peak in 2007 C. in 2005 D. in 2008 when real GDP equaled potential GDP