"During a recession more people qualify for unem ployment insurance . This will increase the government spending category of GDP and help reduce the sever ity of the recession " Do you agree with this statement ? Why or why not

Q: Which one of the following variables is not held constant along a given aggregate demand curve?…

A: The AD-AS model has value in macroeconomics since it represents the link involving aggregate demand…

Q: Draw AD-AS framework for a hypothetical and demonstrate a case when this economy is facing a…

A: The economies around the world go through various phases. Some economies at a given point are…

Q: If the economy starts at full employment but investment exceeds saving, then the economy will move…

A: When AD is above or below the AD required for full employment level equilibrium then it creates…

Q: Suppose AD falls by 1 unit at each price level and the economy enters a recession. What is the…

A: In an economic market, excess supply, also known as a surplus, arises when the quantity of an item…

Q: 2. What is Classical Dichotomy? Write a detailed note on the effeteness of policy in short-run and…

A: The classical dichotomy refers to the idea that real variables, like employment and output, are…

Q: Why might “belt-tightening” by consumers in a recession be unwelcome?

A: Recession is a phase of business cycle when there is a fall in the economic activity, associated…

Q: When the economy is in recession and below potential GDP, more of the increase in aggregate demand…

A: When talking about recession, it can be said that it is the situation when an economy is unable to…

Q: The lowest part of a recession is referred to as its _________. a. Depression b. Boom c. Trough d.…

A: The state of economy when there is significant decline in the activities of the nation is referred…

Q: What makes the 2007-2009 recession special?  1. because of the length of the recession 2. because of…

A: Great recession and the causes is complex and involve several forces.

Q: Which of the following did the United States undertake to migitate the Great Recession ?

A: The great recession would result in the situation of a lower GDP and a lower price level. The great…

Q: During a recession: O potential GDP declines potential GDP increases real GDP declines

A: Gross Domestic Product (GDP) is the total value for final commodities manufactured in an economy.

Q: 13. As a general rule, a recession is a decline in real GDP lasting at least: 3 quarters 1 month 6…

A: GDP is generally an indicator of economic growth and development of a nation. It represents…

Q: According to the Keynesian framework, ____________ in _______________ may cause inflation, but not a…

A: Inflation usually means rise in prices and and recession is such a period where less demand are seen…

Q: What are the likely consequences of a government implementing a policy of austerity during a period…

A: The issue is to decide the probable results of an administration carrying out a strategy of…

Q: Keynesian perspective, explain what is happening in our economy based on the perspective and draw a…

A: AD (Aggregate Demand ) : F ( C ,  G ,  I , NX , M/P )    Aggregate Demand depicts inverse…

Q: . When the economy is in a recession:a. tax eceipts decrease, transfer payments increase, and al GDP…

A: The recession refers to deficient demand in the economy, or demand that is not enough in the economy…

Q: INFLATION RATE LRAS AD SRAS REAL GOP GROWTH RATE Suppose a change in fiscal policy causes the AD…

A: This can be defined as a concept that shows the total demand for the products and services in a…

Q: on age What is generally true of consumers in a recession? a. The rich suffer as the poor cut back…

A: A recession is an economic downturn described by a critical and sustained decrease in economic…

Q: How can I connect unemployment during covid till 2022 using aggregate demand and supply concept

A: A person is said to be unemployed when person is unable to find the job at prevailing wage rate .…

Q: What is generally true of consumers in a recession? a. The rich suffer as the poor cut back on…

A: A recession refers to an economic downturn described by a critical and sustained decrease in…

Q: 47. What is the difference between a recession and a depression? A depression is a particularly…

A: The ‘‘business cycle’’ refers to a fluctuation in production, employment, trade and general activity…

Q: In what year and quarter did U.S. real GDP first exceed its pre-recession level?

A: The great recession in the U.S. was a combination of financial crisis with deep recession. The great…

Q: Use Figure 6 to answer questions 30: RGDP| E A D Time Figure 6 30. In Figure 6, which area…

A: The diagram given in the question belongs to business cycle of an economy.

Q: Explain and illustrate graphically recessionary and inflationary gaps.

A: The aggregate demand curve(AD) shows a different combination of quantity of real GDP demanded and…

Q: Economists have a high regard for Paul Volcker because it was he who decided to have 12 regional…

A: Paul Volcker served as a chairman of the Board of Governors of the Federal Reserve System from 1979…

Q: Households tend to increase their spending during a recession because they realize that more…

A: Recession:- Recession can be defined as a period of economic contraction during which economic trade…

Q: Half of American recessions since the early 1950s have been caused at least in part by rapid…

A: The rapid increase in oil prices have both macro and micro economic impacts on economy.  The macro…

Q: Discuss case study “In the News … Bank of England “Dangerously Ill-Equipped” for Next Recession,…

A: A case study is an in-depth study of a particular subject, such as a person, group, location,…

Q: A recessionary gap can be closed by wages that shift the A. falling; LRAS curve to the right B.…

A: A situation whereby the real GDP of a country is lesser than the GDP level at full employment is…

Q: Which of these crises dismantled the Keynesian consensus? a.The Great War b.Stagflation in the…

A: Inflation is the rate at which costs for labor and products rise. Expansion is at times ordered into…

Q: Consider the following statements about the business cycle.   Which of the following statements is…

A: Business cycles are the alternate periods of expansion and decline in an economy's commercial…

Q: Discuss characteristics of an economy that helps itself correct from a recessionary gap.

A: Potential GDP is the GDP that an economy can produce, given all its resources are at full employment…

Q: the economy is self-regulating and in a recessionary gap, what happens?   a. Wages rise, the SRAS…

A: Recessionary gap is a monetary term that alludes to a circumstance where the real GDP is not as much…

Q: When real GDP declines during a recession, what typically happens to consumption, investment, and…

A: The measure that depicts the final value of goods and services produced in the economy during a…

Q: The lowest part of a recession is referred to as its. O a. Peak O b. Depression O. Boom Od. Trough

A: Business cycle can be seen in the following diagram

Q: If the government enacts an expansionary policy during a time of full employment, ______.   A.…

A: Long run aggregate supply (LRAS) curve demonstrates the full employment level of output (or natural…

Q: Does a boom in Y rises above Natural rate of GDP require a price surprise? In which direction?

A: The natural rate of GDP refers to the full employment level of output. It also corresponds to full…

Q: What factors influence the demand for non-durable goods during an economic recession?

A: Economic recessions are periods characterized by a significant decline in economic activity spread…

Q: Why do economists seek to abstract from the business cycle to focus on long-term secular trends in…

A: The business cycle is the phenomenon of ups and downs in an economy. The business cycle has periods…

Q: Explain why the NBER reported that the 2008 recession began before real GDP had fallen for two…

A: To determine the real GDP the NBER committee calculated the the real GDP and the real GDI (gross…

Q: GDP totaled 12.8 trillion. here was a -2.4 % change from 2008's GDP of 13.2 trillion. The…

A: With GDP in 2009 is -2.4 % less than GDP in 2008, the economy is experiencing contraction in…

Q: When the economy goes into a recession. real GOP---- and unemployment ___ .a.  rises, risesb. rises,…

A: A recession refers to a period of economic contraction during which companies experience weaker…