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Price level (GDP deflator, 2009=100) Millennials Are Starting to Spend More Millennials, who spend an average of $85 a day, are expected to spend at a higher rate in the next fifteen years. Only 37 percent of Americans report higher spending today than a year ago, while 42 percent of millennials say they are spending more. Millennials are spending more on rent or mortgages and leisure activities than they were spending a year ago. 140- 130- Source: Business Journal, May 25, 2016 120- Describe the macroeconomic equilibrium after the change in spending by millennials. If the economy had been at a below full-employment equilibrium, then the economy will A. move to an above full-employment equilibrium with real GDP less than potential GDP B. move to a full-employment equilibrium as short-run aggregate supply increases at the same time 'C. move to a full-employment equilibrium and equilibrium real GDP equals potential GDP D. remain stuck in a below full-employment equilibrium If the economy had been at a full-employment equilibrium, then the economy will be at the short run. In the long run, the money wage rate A. an above full-employment; falls B. an above full-employment; rises C. a below full-employment; falls D. a below full-employment; rises equilibrium in to restore a full-employment equilibrium. The graph shows the U.S. economy when it is operating at a below full-employment equilibrium. Draw a curve that shows the effect of a rise in spending by millennials. Label it. Draw a point at the new macroeconomic equilibrium. 110- 100- 90- 80+ 15.0 16.0 17.0 LAS SASO 18.0 ADO ㅇ 선 19.0 20.0 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question.

Price level (GDP deflator, 2009=100) Millennials Are Starting to Spend More Millennials, who spend an average of $85 a day, are expected to spend at a higher rate in the next fifteen years. Only 37 percent of Americans report higher spending today than a year ago, while 42 percent of millennials say they are spending more. Millennials are spending more on rent or mortgages and leisure activities than they were spending a year ago. 140- 130- Source: Business Journal, May 25, 2016 120- Describe the macroeconomic equilibrium after the change in spending by millennials. If the economy had been at a below full-employment equilibrium, then the economy will A. move to an above full-employment equilibrium with real GDP less than potential GDP B. move to a full-employment equilibrium as short-run aggregate supply increases at the same time 'C. move to a full-employment equilibrium and equilibrium real GDP equals potential GDP D. remain stuck in a below full-employment equilibrium If the economy had been at a full-employment equilibrium, then the economy will be at the short run. In the long run, the money wage rate A. an above full-employment; falls B. an above full-employment; rises C. a below full-employment; falls D. a below full-employment; rises equilibrium in to restore a full-employment equilibrium. The graph shows the U.S. economy when it is operating at a below full-employment equilibrium. Draw a curve that shows the effect of a rise in spending by millennials. Label it. Draw a point at the new macroeconomic equilibrium. 110- 100- 90- 80+ 15.0 16.0 17.0 LAS SASO 18.0 ADO ㅇ 선 19.0 20.0 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 23CTQ: Why do you suppose that U.S. GDP is so much higher today than 50 or 100 years ago?
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Price level (GDP deflator, 2009=100) Millennials Are Starting to Spend More Millennials, who spend an average of $85 a day, are expected to spend at a higher rate in the next fifteen years. Only 37 percent of Americans report higher spending today than a year ago, while 42 percent of millennials say they are spending more. Millennials are spending more on rent or mortgages and leisure activities than they were spending a year ago. 140- 130- Source: Business Journal, May 25, 2016 120- Describe the macroeconomic equilibrium after the change in spending by millennials. If the economy had been at a below full-employment equilibrium, then the economy will A. move to an above full-employment equilibrium with real GDP less than potential GDP B. move to a full-employment equilibrium as short-run aggregate supply increases at the same time 'C. move to a full-employment equilibrium and equilibrium real GDP equals potential GDP D. remain stuck in a below full-employment equilibrium If the economy had been at a full-employment equilibrium, then the economy will be at the short run. In the long run, the money wage rate A. an above full-employment; falls B. an above full-employment; rises C. a below full-employment; falls D. a below full-employment; rises equilibrium in to restore a full-employment equilibrium. The graph shows the U.S. economy when it is operating at a below full-employment equilibrium. Draw a curve that shows the effect of a rise in spending by millennials. Label it. Draw a point at the new macroeconomic equilibrium. 110- 100- 90- 80+ 15.0 16.0 17.0 LAS SASO 18.0 ADO ㅇ 선 19.0 20.0 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question.
Transcribed Image Text:Price level (GDP deflator, 2009=100) Millennials Are Starting to Spend More Millennials, who spend an average of $85 a day, are expected to spend at a higher rate in the next fifteen years. Only 37 percent of Americans report higher spending today than a year ago, while 42 percent of millennials say they are spending more. Millennials are spending more on rent or mortgages and leisure activities than they were spending a year ago. 140- 130- Source: Business Journal, May 25, 2016 120- Describe the macroeconomic equilibrium after the change in spending by millennials. If the economy had been at a below full-employment equilibrium, then the economy will A. move to an above full-employment equilibrium with real GDP less than potential GDP B. move to a full-employment equilibrium as short-run aggregate supply increases at the same time 'C. move to a full-employment equilibrium and equilibrium real GDP equals potential GDP D. remain stuck in a below full-employment equilibrium If the economy had been at a full-employment equilibrium, then the economy will be at the short run. In the long run, the money wage rate A. an above full-employment; falls B. an above full-employment; rises C. a below full-employment; falls D. a below full-employment; rises equilibrium in to restore a full-employment equilibrium. The graph shows the U.S. economy when it is operating at a below full-employment equilibrium. Draw a curve that shows the effect of a rise in spending by millennials. Label it. Draw a point at the new macroeconomic equilibrium. 110- 100- 90- 80+ 15.0 16.0 17.0 LAS SASO 18.0 ADO ㅇ 선 19.0 20.0 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question.
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