Real interest rates tend to ________ during the recession phase of the business cycle and ________ during the expansion phase of the business cycle   A. increase; decrease   B. decrease; decrease further   C. increase; increase further   D. decrease; increase   E. decrease; stay the same

Q: What is the difference between a recession and a depression? A. A depression is the opposite of a…

A: Business cycle refers to the fluctuations in economic activity. It includes expansion and recession.…

Q: 2. Suppose that the economy is in a long-run equilibrium. a. Use a diagram to illustrate the state…

A: Long run equilibrium occurs at the point where the short run supply curve, long run supply curve and…

Q: 13) Detail the workings of the real business cycle model.

A: The real business cycle (RBC) model is a macroeconomic model that explains fluctuations in economic…

Q: At which range the economy is producing at full employment according to the aggregate supply curve.?…

A: We know The economies around the globe tend to operate upon the activities done by various entities.…

Q: An increase in aggregate demand will cause the unemployment rate to _______, the GDP growth rate to…

A: Aggregate demand refers to the total demand for goods and services in the economy by all the…

Q: Specific subject - Macroeconomic Analyse the case of a negative supply shock caused by an increase…

A: The aggregate supply curve increases such that the price level falls and output rises into an…

Q: The short-run aggregate supply curve will shift up if-------. Select one: a. government spending…

A: The short-run aggregate supply curve is an upward sloping curve. While the long-run aggregates…

Q: 2. Explaining short-run economic fluctuations A majority of economists believe that in the long run,…

A: Economists say that money is neutral in the long run. Changes in money affects nominal variables…

Q: 1. There is a positive aggregate demand shock. Draw what happens to the economy in the short run.…

A: In the short run, a positive aggregate demand shock refers to a sudden increase in overall demand…

Q: Using the model of Aggregate Demand and Supply, explain the impact of Brexit on the Irish Economy,…

A: With increased global integration of trade and economic activities, it is more important than ever…

Q: QUESTION 3 A recession is often the result of what type(s) of economic disruption? Check all that…

A: A recession is a significant decline in economic activity that lasts for an extended period,…

Q: What makes the 2007-2009 recession special?  1. because of the length of the recession 2. because of…

A: Great recession and the causes is complex and involve several forces.

Q: 20. Short run in the AD-AS model Which of the following would cause prices and real GDP to rise in…

A: Aggregate demand (AD) refers to the total demand of the goods and service by an economy in a period…

Q: 71. What does technological growth do to the Long Run Aggregate Supply Curve? (A) Nothing. (B)…

A: The shift of the LRAS curve A rise in the aggregate supply leads to a right shift of the LRAS…

Q: Aggregate Demand is equal to nations aggregate output Select one: a. False b. True

A: Aggregate demand is a term used in economics to describe the overall amount of demand for all…

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: 1. For a long run closed economy, a plague causes a sharp decrease in the labor force. What happens…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: When there is a shock to the economy and GDP declines, how much of the decline is due to a change in…

A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…

Q: Consider an economy initially in a long-run equilibrium. A positive AS shock will _____ the price…

A: Long run aggregate supply curve is vertical. In  the long run, the actual GDP is equal to potential…

Q: Which of the following is correct? Select one: Over the business cycle investment fluctuates more…

A: "For countries' economies, business cycles are an irregularity evident in the overall output. A…

Q: 8. Assume a country's government increases taxes and its central bank increases its administered…

A: Fiscal and Monetary policy are two important tools for ensuring price stability, economic growth,…

Q: An increase in long-run aggregate supply can be expected to the natural rate of unemployment, have…

A: Unemployment basically refers to the state of a person or individual who is actively looking for job…

Q: 1. Assume a nco-classical aggregate supply model with both long run and short run aggregate supply…

A: Short-run alludes to the time-frame in which the makers need more opportunity to change every one of…

Q: An increase in long-run aggregate supply can be expected to the natural rate of unemployment, have…

A: A proper understanding of the macroeconomy is of utmost importance because it enables individuals,…

Q: Q1. Fill in the balnks  The expansion phase of the business cycle is followed by ______________.

A: Business cycle: The periodic expansion/contraction or increase/decrease of a nation's economy, as…

Q: 1. The idea that the business cycle is recurrent means that the standard pattern of…

A: Disclaimer :- you posted multiple questions we are supposed to solve the first one only . Business…

Q: 17 The long-run aggregate supply curve shifts right if   a technology advances. b the capital stock…

A: The long-run aggregate supply curve shows the potential output of the economy in the long run. It…

Q: Explain what would happen in the following markets given the following demand or supply shocks. In…

A: Demand curve depicts the inverse relationship between price and quantity demanded, keeping other…

Q: The short-term aggregate supply curve is the relationship between the amount of real GDP supplied…

A: Since you have posted multiple questions. But according to answering guideline, we are supposed to…

Q: Which of the following is an example of a negative AD shock? O a decrease in taxes O an increase in…

A: 1) Aggregate shocks, such as changes in consumption, government expenditure, investment, or net…

Q: 2. During recessions, output a and unemployment both fall b. and unemployment both rise c. rises,…

A: 2) Recession refers to a massive decrease in economic activities, which is usually caused by…

Q: Which of these are examples of positive real shocks? a Technological booms b, Higher jumps in oil…

A: Positive real shock either increases the demand or supply in the economy.

Q: Describe the two goals that the Federal Reserve is required to pursue with monetary policy. Given…

A: The two goals that the Federal reserve is required to pursue with monetary policy are : Maintain…

Q: Explain the macroeconomics in the context of following; a. Aggregate supply and demand b. Shifts in…

A: Macroeconomics is studied to learn about to broader components of an economy, such as AD-AS,…

Q: 79. Why do countries with hyperinflation lack economic growth? (A) The aggregate supply curve is…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: business cycle

A: ‘Business cycle’ refers to a fluctuation in production, employment, trade and general activity in an…

Q: Which of the following is an example of an IS shock? i. A change in interest rates ii. A change in…

A: What is a Supply Shock? A supply shock is a powerful reaction to the price of a product because of…

Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.