Answered: Over time, increases in Potential GDP…

Over time, increases in Potential GDP are the result of O A. inflation O B. increased government spending C. lower taxes O D. increases in technology

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: Macmillan Learni Country GDP in millions of U.S. dollars Wrigleyville Longhornland Dinkytown 559.0…

A: National Income is the value of final goods and services produced in a country during a year. Per…

Q: The factor of production _________, and the factor of production _______. A. money earns…

A: For the aforementioned question, the correct alternative is B.

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: Which of the following policies would increase the likelihood of economic growth in a country which…

A: In simple terms if in a country there is a rise in the production of goods and services over a…

Q: . If the present price level is 100, the growth rate of real GDP is 5. If the present price level is…

A: GDP is the gross domestic product. GDP is the market value of all the final goods and services…

Q: 10) In the above table, the production of 3 pissas and 80 cases of se is A) impossible unless more…

A: Since we only answer up to 3 parts, we’ll answer the first 3. Please resubmit the question and…

Q: Problem 02-06 algo Assume that total output is determined by this formula: number of workers x…

A: Given that: Output = Number of workers * Productivity Assuming there are initially 100 workers and…

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: On the following graph, the black line shows potential real GDP and the blue line shows actual real…

A: Full employment is the economic state of using all the resources available in the market. It…

Q: Which central problem of an economy is concerned with the selection of goods and services to be…

A: The Central problem we consider while studying economics are what to produce, How to produce and the…

Q: What does the business cycle shown on this graph suggest about the condition of the economy at point…

A: Business cycles are a common feature of every market economy. There are typically four phases of a…

Q: None

A: Option a) 115: This option is correct because Peter Howitt's theory suggests that if inflation drops…

Q: Business cycles are a. movements in stock prices. O b. the transfer of executives between firms. c.…

A: Gross domestic product refers to the value of final goods and services produced in an economy over a…

Q: A country faces diminishing marginal returns when increasing it's capital stock. If this country…

A: Answer: Diminishing marginal returns: if a particular input is increased keeping all other inputs…

Q: Real Consumption The diagram below shows alternate paths for two hypothetical economies, each…

A: In the above diagram, curve A represents economy A and curve B represents economy B. At point e,…

Question

6.
Over time, increases in Potential GDP are the result of
O A. inflation
O B. increased government spending
O C. lower taxes
O D. increases in technology

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

2
7
2. The model of aggregate demand and supply represents O A. the relationship between the real Gross Domestic Product and the overall price level O B. the changes in Gross Domestic Product over time O C. the relationship between the inflation and unemployment rates O D. the changes in the price level over time
Suppose the economy is such that the current GDP is great than potential GDP. If the government does not act, which of the following would we expect to occur? Select one or more: O a. Price levels will decrease Ob. GDP will increase O c. Price levels will increase O d. No effect of GDP e. GDP will decrease O f. No effect on price levels
What are the main components of measuring GDP with what is demanded?
According to Table 19.7, how often have recessions occurred since the end of World War II (1945)?
60 + Import favorites How can you find the main idea of this graph? O O O A) Look at the labels on the graph. B) Read the title of the graph. C) Consider the format of the graph. D) Read the data in the graph. Federal Spending in Fiscal Year 2020 Social Security $1.1 Trillion Medicare $769 Billion Medicaid $458 Billion $345 Billion Defense $714 Billion Outlays $6.6 Trillion PPP $526 Billion Unemployment Recovery Compens S473 Billion S Nondefense 5914 on Other $968 Billion
60
Using the data in the table, gross domestic product equals O A. $2,150. B. $1,920. O C. $2,400. O D. $1,940. Corporate profits Net interest Indirect taxes less subsidies Depreciation Compensation of employees Proprietor's income Rental income Personal consumption expenditures Government expenditure on goods and services Net exports of goods and services $200 150 230 250 1,350 150 70 1,400 500 40
Suppose the government runs fewer budget deficit and there is a decrease in the average household income. Then, O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would increase. O The new EQ quantity of loanable funds would decrease, but the new EQ interest rate would be indeterminate. O The new EQ quantity of loanable funds would be indeterminate, , but the new EQ interest rate would decrease. The new EQ quantity of loanable funds would be indeterminate, but the new EQ interest rate would increase. The new EQ quantity of loanable funds would increase, but the new EQ interest rate would be indeterminate.
Question 1) a) In panel (a) the curve shifts upward, what could cause this? O Increase in G (govermment spending)O Decrease in HH wealth due to a decrease in housing pricesO An increase in the overall price levelo Areduction in govemment spending (G) b) Using Figure 2, if this economy is currently at Y1 and consumer wealth increases, then___O AD1 will shift to the left, reflecting a decrease in the real GDP at every price level.O AD1 willshift to the right. reflecting an increase in the real GDP at every price level.O an upward movement along the AD1 wiltake place., reflecting an increase in the price level.O a downward movement along the AD1 will take place, reflecting a decrease in the price level.
Which of the following types of spending should be not included in Government Purchases, one of the four expenditure components used to measure U.S. Gross Domestic Product? Select one: O a. The federal government purchases an airplane for the U.S. Air Force. O b. The state of Louisiana pays unemployment insurance benefits to qualified unemployed persons. O c. The salaries paid to members of the U.S. Congress. Od. The state of Louisiana pays a construction company to build new roads.