Is Canada in a recessionary gap or inflationary gap right now? and how could you tell?

Q: Since 1965, the U.S. economy has experienced how many economic contractions?

A: Since 1965, the U.S. economy has witnessed seven economic contractions so far.

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: A recession in the United States is likely to raise the growth of real GDP in Europe. Do you agree…

A: Since Europe is the largest trading partner with the U.S., a recession in US will have a major…

Q: Current GDP increases relative to potential GDP if and only if aggregate demand exceeds current GDP?

A: The output gap is defined as the difference between real GDP and potential GDP. When the production…

Q: What do you expect about the unemployment rate and inflation rate when we have the actual level of…

A: Actual level of output refers to the production of goods and services that are actually produced in…

Q: Create a graph that shows where Mexico currently is on the business cycle. Be sure to include an…

A: Mexico is currently running into recession attributing the pandemic situation and fiscal tightening…

Q: What are inflationary and recessionary gaps in the economy? How do they impact the economy?

A: Deflation is defined as a drop in the overall price level of all products and services in a specific…

Q: What were the monetary and fiscal policy responses to the Great Recession? Discuss their…

A: During the late 2000s, the nice Recession was defined by a dramatic drop by profitable exertion.…

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: if the economy is in a recession, who is at fault?

A: Recession refers to the situation of lower economic activity. During recession, economic activities…

Q: Which substitute we may use if future prices are not expected to follow thegeneral inflation rate?

A: Future price refers to the future value of the same commodity at some set future date.  The general…

Q: What were the causes and consequences of the Great Recession?

A: The great depression as the name itself suggest is one of the greatest event in the history. It…

Q: What is the recessionary gap and inflationary gap? Explain the following concepts in detail. Use…

A: The cross-section of the economy’s AD and short-run AS curves computes the equilibrium real GDP and…

Q: Suppose most business executives expect a slowdown in the economy.  How might this situation affect…

A: The loss of business and consumer confidence leads to an economic recession.

Q: Define what economists mean when they use the word: “recession”?

A: GDP is used to measure total income in the economy.   It is the value of final goods and services…

Q: What is worst recession in France in terms of magnitude

A:

Q: Give a solution to fix a serious national recession

A: The recession is a situation of declining the Gross Domestic Product of the economy due to the…

Q: Do you think there is a predictable relationship between the business cycle and aggregate investment…

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

Q: Find the aggregate demand of these three people (is the answer a, b, or c below--Circle) (b)…

A: The aggregate demand is the summation of all the individual demands in the economy. The main…

Q: Do you think there is a risk of stangflation in the world in the current economic situation?

A: Stagflation is defined by slow economic growth, relatively high unemployment, or economic stagnation…

Q: Who is John Maynard Keynes? What time period did he write?  What did he believe about the market’s…

A: John Maynard Keynes was an English Economist who presented his ideas in the field of macroeconomics…

Q: If the Congress wants to increase the AD by $5 billion, how much should they increase the government…

A: Given the increase in AD = $5 billion. We are required to find government spending.

Q: Tell in your opinion how can the European economy break the deadlock of economic recession.

A: Recessions generally refer to a downfall in the economic activity. They generally occur when there…