One of the factors in the economic downturn of the 1970s was O A. increased oil prices from Arab oil embargos following Arab Israeli wars O B. austerity measures imposed by the European Union O C. deflation O D. the velvet revolution

Q: Critics of Keynesian economics argue that: O a. increases in government spending cause private…

A: Keynesian economics is a theory that says the government should increase demand to boost growth.…

Q: 2. All of the following are types of macroeconomics data except the: A) price of a computer. B)…

A: The branch of economics that studies the behavior of individual economic agents, such as consumers,…

Q: Price Level P2 P1 PO LRAS IB. O YO Yp Y1 real GDP AD2 O A temporary increase in the price of oil. An…

A: This is the figure of aggregate demand and aggregate supply curve with short run and long run…

Q: The ultimate goal of macroeconomic policy is to: OA. Maintain a stable positive economic growth rate…

A: The goals of macroeconomics are maximizing the standard of living of an individual and attain…

Q: c. d. A key question in macroeconomics is why the economy experiences business cycle fluctuati…

A: The ups and downs in the economy of the country is a result of business cycle.

Q: Which of the following is not a commonly used price index? Select one: O a. Wholesale price index O…

A: Price index (PI) is a measure of how prices fluctuate over a while, or in other words, a measure of…

Q: 9. Which of the following are stages of the business cycle? Select all that apply. A. trough B. peak…

A: Business cycle Business cycles are defined as coordinated cyclical upswings and downswings in broad…

Q: is a positive statement? of 7 percent is too high. ent rate of 7 percent or higher is a national…

A: Positive and normative analysis are two branches of economics. Positive analysis focuses  on “what…

Q: Which of the following best describes inflation? O a. Economic growth. O b. An increase only in the…

A: The cost of nearly all goods and services in the economy is rising, which is referred to as…

Q: Use the following graph to answer the next question. Price Level P₂ P₁ AS Y3 AD₂ AD₁ Y₁ Y₂ Real GDP…

A: Economics is a social science that studies the production, distribution, and consumption of goods…

Q: Suppose a change in exchange rates causes aggregate demand to decrease. What is the result? Choose…

A: The value of one currency in relation to another is shown by the exchange rate. This is the cost at…

Q: One important reason why the Great Recession and the COVID Recession were shorter than the Great…

A: During great recession the Federal Reserve and government took active policy to stabilize the…

Q: QUESTION 14 The main cause for the vast differences in per capita GDP levels seen across the globe…

A: Definition: The GDP is the completion of all worth-added made in an economy. The worth added implies…

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: How does a real appreciation affect the quantities of imports and exports? Select one: O a. Imports…

A: The increase in dollar deposit in bank increases the reserve of bank ie creating more  money supply…

Q: Economics    Which of the following will reduce the price level and real output in the short run?…

A: In economics, the short run refers to a period of time during which some factors of production are…

Q: The growth of American tourism to Cuba has dramatically affected private sector employment, as Cuban…

A: Inflation is a general overall increase in the level of prices of commodities and services in the…

Q: During the Great Depression, the U.S. economy experienced Select the correct answer below: O severe…

A: A period of decline in the overall economic activity of a country, typically measured by a decrease…

Q: Keynesians: O a. accept the fact that policymakers should eliminate inflation first before focusing…

A: The postwar period shows how Keynesianism has progressed in terms of its ability to alleviate…

Q: Choose the statement that about deflation that is incorrect. O A. The price level falls if aggregate…

A: Inflation happens with an increment in the prices of products and services, generally because of an…

Q: Economists find in a business cycle, a peak represents the end of and a trough represents the end of…

A: The business cycle shows the trends of the gross domestic product (GDP) and how it expands/changes…

Q: Variations of actual real GDP around potential real GDP are called economic fluctuations. What is…

A: Variations od actual GDP around potential GDP are called economic fluctuations and is also termed as…

Q: If real estate prices in the United States fall, this leads to A. An increase in real U.S. wealth,…

A: Rising house prices, generally encourage consumer spending and cause higher economic process –…

Q: b. Generalizing from the computer market specifically to the economy as a whole, what will happen…

A: Negative demand shock means the shocks which shift the demand curve to the left.

Q: Assume the following macroeconomic conditions in the United States and that US policy makers desire…

A: In general, macroeconomic condition of an economy is analyzed with the help of its output growth,…