QUESTION 28 What is explained by accelerator theory? O a. The way in which a small injection leads to a greater increase in GDP O b. The way in which unemployment today depresses aggregate demand in future, creating more unemployment O c. The way in which current inflation leads to greater future price rises O d. The way a small change in national income leads to a greater increase in investment

QUESTION 28 What is explained by accelerator theory? O a. The way in which a small injection leads to a greater increase in GDP O b. The way in which unemployment today depresses aggregate demand in future, creating more unemployment O c. The way in which current inflation leads to greater future price rises O d. The way a small change in national income leads to a greater increase in investment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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16
Two main macroeconomic concerns are the problems of inflation andunemployment.a. What are the social costs of inflation? Explain TWO of them? b. What is natural rate of unemployment? Explain the TWO main causesof natural rate of unemployment. With reference specifically to ONEof these causes, suggest ONE practical government policy that reducesthe natural rate of unemployment.
Macroeconomic indicators can be categorized as "leading" or "lagging". Which one in the list below is not a lagging indicator? Select one: O O a. The Consumer Price Index b. Labor market statistics c. Commodity prices d. Retail Sales
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When the economy hit the bottom in 1933: O the national output was one third lower than it had been in August 1929 O there was about 25% unemployment there was large scale homelessness all of the above
Each of the following is a determinant of demand except O a. lastes. O b. expectations. Oc production technology. O d. the prices of related goods. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
what is the correct answer?
Which of the following is incorrect about the outcome of the cost of expected inflation? Select one: O a. It results in unfair tax treatments. O b. It does not result in relative price distortions. O c. It increases menu costs. O d. It increases shoe leather cost. Which of the following statements best apply to the closed economy model? Select one: O a. An increase in labour results in an increase in output. O b. The interest rate adjusts to equilibrate demand and supply. O c. Reducing taxes is the best option for increasing income. O d. The government uses fiscal policy to regulate the economy. Complete the statement below. Classical dichotomy Select one: O a. distinguishes between money and inflation. O b. makes the distinction between money demand and money supply. O c. makes a distinction between real and nominal variables. O d. isolates the real interest rate and real GDP
Economists use the neoclassical growth model to explain fluctuations in the business cycle because can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. O cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O
I just need assitance and a better understanding of 3 and mostly 4 1. Another economy has the production Y = A * K^0.5 * L^0.5, the marginal product MPL = 0.5 * A * K^0.5 / L^0.5, in which K = 144 and the supply of labor w = 5 * EP/P *L^0.5 Productivity is A=50. In absence of shocks and policies, EP/P=1, the number of jobs is L = 60, and wage is w = 38.73. But now inflation is slower than expected, with EP/P=1.2. Find the new equilibrium number of workers. 2. Find the new equilibrium wage at EP/P=1.2 3. Graph the change in the labor market equilibrium. Mark the before and after equilibria with E0 and E1. Label axes and curves, map relevant values onto axes. 4. Now let's consider this same scenario in terms of the accelerationist Phillips curve. The labor force is N=64. Find the rates of unemployment before and after as (N-L)/N and map them into our surprise inflation indexes, EP/P. Label the natural rate of unemployment, show the cyclical rate of unemployment. Step 1:…
Question 6 According to the Real Business Cycle, an increase in government spending Shifts the long-run supply to the right O Increases price without any effect on output O Increases output without any effect on price O Increases both price and output
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