Q: Following a real GDP - trough; increases trough; decreases peak; increases Otrough; decreases for…
A: Answer: Trough: it refers to the lowest point of declining business activities. After the trough,…
Q: Does economic growth result from increases in aggregate demand, short-run aggregate supply, or…
A: Solution: Economic Growth: It refers to an increase in real GDP when aggregate demand and supply…
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A: Until the 1970s, many economists felt that inflation and unemployment were inextricably linked. They…
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A: Real GDP growth rate, which accounts for inflation or deflation, quantifies economic growth as…
Q: After the reccesion of economy caused by Covid19, why do experts expect a ‘U’ shaped recovery rather…
A: The recession leads to a significant decline in the economic activity, real income, real GDP,…
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A: Recession is a macroeconomic concept. It is a part of business cycle and it comes after the Boom or…
Q: Which of the following is the proper sequence of events in a business cycle model? Peak, GDP falls,…
A: When talking about business cycle, it is the cyclical process that is followed by the market based…
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A: A country's entire economic production for a certain period of time, usually a year, is measured by…
Q: uppose a change in exchange rates causes aggregate demand to increase. Which of the following is NOT…
A: GDP refers to the total monetary value of all final goods and services that a nation produces in its…
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A: Equilibrium GDP in short-run occurs at the intersection point of AD and SRAS If actual GDP <full…
Q: Can LRAS be shifted? What are the factors that caused LRAS to shift?
A: The aggregate supply (AS) refers to the total volume of services and goods produced in the economy…
Q: Wheneve ther is a recession imports decrease. Therefore to stop a recession we should increase…
A: The recession is a situation in an economy when aggregate output starts falling. Under recession,…
Q: True or false: GDP is better indicator of a country as well because it gives a better indication…
A: GDP is the production of goods and services during an accounting year.
Q: Since 1950, expansions in the United States have become ________, while recessions have become…
A: Recession: It is a macroeconomic term that alludes to a critical decrease in all financial movement…
Q: An overheated economy is most likely to result in: price stability high inflation stagflation…
A: A country's economy often overheats when supply is less than the demand. The price of goods and…
Q: Suppose Y = C+ I + G C = 900 +.75(Y) I = 300 G = 400 a. Calculate the equilibrium GDP
A: GDP measures the value of goods and services produced within an economy in a given period of time.
Q: During which of the following situations is the percentage change in real GDP always positive? Multe…
A: In an economy, business cycle phases give specfiic information about the real GDP whether it is…
Q: Use Figure 6 to answer questions 30: RGDP| E A D Time Figure 6 30. In Figure 6, which area…
A: The diagram given in the question belongs to business cycle of an economy.
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A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: what macroeconomic government policy/policies can be implemented to jump start the economy's savings…
A: The policies which can be taken by government post Covid-19 to implement jump start in the economy's…
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A: The reasons for decline in potential GDP in the US are lower productivity growth, weaker…
Q: During global recession, cite some good measures that our government can undertake to augment its…
A: During a global recession, numerous businesses fall flat and leave business, and a significant…
Q: Indicate the component which contributed the greatest share of expenditures for each piece of GDP of…
A: Gross Domestic Product (GDP) measures the final value of goods and services produced within the…
Q: In the current economic situation, is there a possibility of stagflation by the coronavirus and the…
A: During stagflation, a high inflation rate is accompanied by low economic growth.
Q: What do we consider a shock in global business? O Development of a new technology that is an…
A: A Shock refers to an unexpected or non-predictable event that affects an economy, either positively…
Q: You are the President and the nation is slipping into recession. Using the Keynesian AD/AS theories…
A: The Keynesian viewpoint is concerned with aggregate demand. The concept is simple: businesses only…
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A: The adjustment process implies a self-adjustment mechanism through price adjustment. This…
Q: Consider the following statements about the business cycle. Which of the following statements is…
A: Business cycles are the alternate periods of expansion and decline in an economy's commercial…
Q: Macroeconomists generally believe that year-to-year fluctuations in real GDP around its trend are…
A: C) Sign of a healthy dynamic economy
Q: (a) How do you think the above impacted Real GDP and the inflation rate? (b) Do you think the…
A: In the beginning of year 2020, when the pandemic hit the world, the world was devastated. The impact…
Q: By using AD-AS Model, discuss the impact of prevailing COVID-19 situation on Pakistan’s economy in…
A: The macroeconomic equilibrium in an economy is determined by the aggregate demand and aggregate…
Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: The potential output will shift to the right if the economy A has a decrease in population. B net…
A: Potential output is the full employment output that is produced when all the resources are fully…
Q: Explain the fundamental causes of nations business cycle fluctations.Also examine the relationship…
A: In an economy, the fall or rise in the production output of commodities and services are described…
Q: Consider an AS-AD model for the U.S. Suppose an economic expansion in Mexico increases income for…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. Net…
Q: What is the effect of the Covid-19 pandemic on the Business Cycle? Put some reference from…
A: The global economy is on track to stage its most strong post-recession rebound in 80 years in 2021,…
Q: If real GDP grows at an annual rate of 1.19% then we can expect real GDP to double in approximately…
A: We will use the rule of 70 to calculate how many years will it take for the GDP to become its…
Q: Aggregate spending equals Select one: a.C+I-G+X-IM b.C+I+G+X-IM c.C+I+G-X-IM d.C+I+G+X+IM…
A: Aggregate spending is the total spending on goods and services by consumers, businesses, government,…
Q: the principle of transition dynamics: the farther below its steady state acountry is, the faster the…
A: Steady state under the Solow model is a point where the investment in the economy is equal to the…
Q: Where does GDP fit into an AD/AS model?
A: Gross domestic Product (GDP) is a key macroeconomic variable that measures the entire value of all…
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- In a business cycle , what are the features of stages of expansion ? a ) Rise in national output , Rise in consumer expenditure , Bank advances grow rapidly . b ) Rise in national output , Rise in capital expenditure , Bank advances grow rapidly . c ) Rise in national output , Rise in consumer and capital expenditure , Bank advances grow slowly . d ) Rise in national output , Rise in consumer and capital expenditure , Bank advances grow rapidly .Use the AD‐AS model graph to explain how the government can increase economic growth and reduce the rate of unemployment.In the first quarter of 2020, US real GDP declined about 9%, due to the economics shocks from the Covid 19 virus. If prices were completely flexible, and this means all prices, both inputs (such as labor), as well as output prices, what would you think would have been the drop in GDP? If prices are completely fixed, would the drop in GDP be greater or less than the flexible case? Why? If the Expenditure method of accounting for GDP, has to equal the Income Side, and the economy overproduces a particular item, say automobiles, the income side will also be higher, workers will buy the extra cars with extra income and the economy can gyrate indefinitely higher? Why or why not?
- Price Level P2 P1 PO с LRAS YO Yp Y1 real GDP SA52 AD1 SAS1 AD2 Refer to the figure above. Which of the following would cause a movement from point C to B? an increase in government purchases households and firms begin to expect prices will fall in the future. a decrease is the wage rate an increase in the price of energy, an input in production. a decrease in household wealthDescribe the following term in your own words. Stagflation1. Climate changes and the Ukrainian-Russian war disrupt global output. Malaysia imports agricultural products from overseas. Assume that the economy is initially operate at its full employment. Based on above situation, explain the effects of this on the economy in the short run. Use AD-AS diagram in your illustration.
- What is defation, and what problems does defation pose for the macroecon-omy?Out of the options below, which is the best answer for a complete analysis of economic conditions? GDP: +1.2 Consumption: +0.1% Investment: +3.0% Government Expenditures: +0.5% Net Exports = Unchanged a. Consumer spending is down but consumer investing is up. I expect the stock market to be reaching new highs b. While GDP growth is slow, the future is bright because firms are investing in new plant and equipment a. The economy is doing well at 1.2% growth. d. GDP is growing but with flat consumption, increased investment is likely due to inventory increases. This is a bad sign for the economy now and perhaps next quarter.what are keynes 3 alternative graphs/sectors.
- The diagram below shows the economy growing at the Solow growth rate with Spending ( M + v) at 10% . Redraw the graph below and answer with a graph each of the following questions. Assume that prices are sticky. Note: you should redraw the ASAD graph below two separate times, once for part a, then again for part b—do NOT do give all your answers on one graph. One graph = zero points. Be sure to LABEL all changes (i.e. x axis, y-axis, intersections….) a. Show what happens if consumers and businesses become more optimistic about the economy—where is YA? where is the new PL? b. Once The Federal Reserve bank sees what happened in part a, she decides to fully reverse the effect in part a. by changing M. Illustrate what happens if she does her job just rightMalaysia GDP to rebound up to 7.5% in 2021, central bank predicts The Malaysian economy is expected to grow between 6% and 7.5% this year, the central bank said on Wednesday, with COVID-19 vaccinations and stronger external demand driving a recovery from the 5.6% contraction for 2020. Central bank Governor Nor Shamsiah Yunus said growth this year would also be underpinned by higher private and public expenditures, while an accelerating immunization campaign will improve confidence. "The Malaysian economy is projected to rebound in 2021, with the gross domestic product achieving pre-COVID-19 levels by mid-2021,". The new full-year estimate leaves slightly more room at the low end, compared with a previous forecast of 6.5% to 7.5% expansion. "In our forecast, we assume that herd immunity will only be achieved in the first quarter of 2022," Nor Shamsiah explained. She also said the bank considered that Malaysia's international borders could remain largely closed for the entire year, but…