Figure: Inflationary and Recessionary Gaps

Q: Explain the gdp gap

A: GDP is the short form for Gross Domestic Product which means briefly means the difference between…

Q: when does an economy experiences stagflation

A: Government and central bank control the financial and economic functioning of a particular economy.…

Q: Question: What Are The Variables For Conditional Convergence For An Economy

A: Conditional convergence is a principle that indicates that poorer countries, in terms of per capita…

Q: Why do banks choose to securitise their assets? Explain how securitisation may exacerbate the…

A: Answer -      Securities :- These are a financial instrument which has non-negotiable and has…

Q: Discuss the 4 components of aggregate demand?

A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…

Q: With the  AD-AS graph, what variable is on the vertical axes?

A: The AD( Aggregate Demand) and AS(AS) model is the one that represents the national income along with…

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: 1479 1770 1047 1040 1040 O True O False YEAR Source: "Current-delar and Real GDR Bureau of Economics…

A: The graphical representation highlights the business cycle of the US economy running between 1947 to…

Q: Please solve using a national income accounting: An increase in disposable income will increase in…

A: National income means the total factor income earned by country's national income during an…

Q: Define stagflation?

A: The persistent increase in the price level is known as the inflation. Inflation is worrisome for the…

Q: If the employment rate of output exceeds the planned aggreagte expenditure what will happen to the…

A: Keynes posited that unemployment may endure due to insufficient demand in the economy. Keynes was of…

Q: J. What happens to unemployment during and after recessions? K. What is stagflation?

A: Unemployment refers to the number of population who want to work but do not get work.

Q: What are characteristics of an economy that helps itself correct from a recessionary gap

A: A recession is a temporary period of economic slowdown, generally defined as  a fall in GDP over…

Q: How relate with gdp can be reliable indicator of standard of living and use fiscal and monetary…

A: Macroeconomic aggregates are statistical indicators of a country's overall economic success. The…

Q: Explain the GDP gap? (Need explanation)

A: The GDP gap represents the difference between actual and complete employment GDP (also known as…

Q: If the economy depicted in the graph is a self-regulating economy: Price Level LRAS SRAS (P) PE AD…

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

Q: Price level Aggregate supply Aggregate demand GDP

A: If there is a substantial rise in consumption then it enhances the demand and as a result the demand…

Q: Explain how we create the Macro "quanitity" measurement

A: Explain how we create the Macro "quantity" measurement. Answer: Macro quantity measurements are the…

Q: What is the net aggregate income?

A: The productivity of an economy is reflected from its aggregate income that represents the total…

Q: How do economists use a basket of goods and services to measure the price level?

A: Basket of goods and services: This is a concept of macroeconomics. Basket of goods and services…

Q: Calculate inflation in 2019 and 2020.

A: When we use 2018 as a base year: Real GDP for 2018 = 8*1000 = $8000 Real GDP for 2019 = 8*1500 =…

Q: what are the theories of the cycle in economic gowth and fluactuations?

A: Keynesian Economist Keynes assumes that economic fluctuations occur in different periods of time of…

Q: Describe the differences between recessionary and inflanationary gaps.

A: There are two types of gaps in the economy: 1. Inflationary gap 2. Recessionary/Deflationary gap…

Q: A decrease in real GDP at the same time that nominal GDP increases would be consistent with: None…

A: Nominal GDP= Current year quantity × Current year price.  Real GDP = Current year quantity × Base…

Q: Notice that real GDP trends upward over time but experiences ups and downs in the short run. These…

A: The total worth of all products and services produced inside a nation's boundaries over a certain…

Q: GNP endeavours to quantify the yearly creation of the econ-omy. Non-productive exchanges ought not…

A: The Gross National Product (GNP) is an estimate of the total worth of all final goods and services…

Q: What is Potential GDP and a GDP Gap? If the unemployment rate is 8.6% is the economy operating above…

A: GDP is the amount of final services and goods which is produced in a particular period of time in a…

Q: Explain the concept of the circular flow of the income in the economy.

A: The circular flow of the expenditure and the income in known as a procedure whereby the expenditure…

Q: (Figure: AD-AS) Use Figure: AD-AS. Consider an economy that is producing an aggregate output of Y₁.…

A: Note: You have upload two questions at a time. Hence, we shall answer only the first one for you. If…

Q: Construct the AD, SRAS, and LRAS curves for an economy experiencing   1. full employment 2. an…

A: Aggregate Demand curve refers to the downward sloping curve that shows or gives information about…

Q: Can we attain equilibrium GDP on the demand side and still have high unemployment?

A:

Q: What is GDP and Real GDP and how is it relevant in Macro?

A: In the mentioned question we have to tell what is GDP and Real GDP and why and how these are related…

Q: An article in The Economist magazine noted that 'the economy's potential to supply goods and…

A: The GDP is the shortening utilized for the GDP. The cash worth of the multitude of finished…

Q: Give the definition of GDP and explain what items are not included in its calculation and what is…

A: The amount of goods and services generated in an economy each year is referred to as GDP. To…

Q: Display a situation of worsening stagflation in the USA economy using diagram(s)

A: Stagflation is a mix of stale economic development, high joblessness, and high inflation. It's an…

Q: a. Suppose that American households become more worried about the future, and they begin to save…

A: In an economy, if people become less confident about future, they tries to save some money that can…

Q: What is the impact of recession in our economy?

A: The economies around the globe have a limit to the amount of resources available with them. The…