Since 1950, expansions in the United States have become ________, while recessions have become ________. longer; longer shorter; shorter shorter; longer longer; shorter
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: Unemployment increasing from 5% to 9% during the year
A: Which of the following economic environments would most likely be associated with a recession?…
Q: How would the following changes shift aggregate demand? Label whether it is an "increase in…
A: There is a negative or inverse relationship between the price of goods and services and their…
Q: Determinants of aggregate demand The following graph shows a decrease in aggregate demand (AD)…
A: The changes in the determinants that will lead to a fall in aggregate demand are:Consumer…
Q: Suppose the economy is operating at potential GDP when it experiences an increase in export demand.…
A: Increasing desire for products and services is created by an overactive market, that drives up the…
Q: Suppose firms are optimistic about the outlook of the economy and they decide to increase…
A: The equilibrium is established where the aggregate demand and aggregate supply are equal. The…
Q: RATE of GROWTH of Aggregate output (Y) is calculated as Percentage Change in RGDP =Y:
A: Aggregate output is the total value of goods and services produced in an economy during a certain…
Q: State both definitions of a recession, the old/traditional definition and the new/modern definition.…
A: Recession is a macroeconomic concept. It is a part of business cycle and it comes after the Boom or…
Q: ANNUAL CHANGE IN REAL GDP (Percent) 3 2 O 7 Ń -3 -5 1981 1982 1983 1984 1985 YEAR 1986 1987 1988…
A: Gross Domestic Product (GDP)Gross Domestic Product, or GDP for short, is a crucial economic…
Q: Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all…
A: The gross domestic product (GDP) of the United States refers to the market value of all final items…
Q: During a recession: O potential GDP declines potential GDP increases real GDP declines
A: Gross Domestic Product (GDP) is the total value for final commodities manufactured in an economy.
Q: Suppose GDP is 21.8 trillion and aggregate expenditures are 16.5 trillion. How does inventory…
A: Inventory is the stock of raw materials and unsold goods available to a business firm at the end of…
Q: 13. As a general rule, a recession is a decline in real GDP lasting at least: 3 quarters 1 month 6…
A: GDP is generally an indicator of economic growth and development of a nation. It represents…
Q: Which of the following variables falls when the national economy enters a recession? (choose all…
A: Recession: In the business cycle, recessions are a normal, albeit unpleasant, part. During a…
Q: The gross domestic product (GDP) of the United States is defined as the market value of all final…
A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…
Q: 1000 Real GDP What is the price level in the new long-run equilibrium as a result of this shift? NƠ…
A: Aggregate demand curve represents the sum of quantity demanded by all the consumers in the economy…
Q: Consider the follovwing transactions that occur during the current year: 1. Andrew, a liquor store…
A: Answer in step 2
Q: Which one of the following is most likely to cause stagflation? Group of answer choices An increase…
A: Stagflation is a scenario characterized via a mixture of stagnant economic growth, excessive…
Q: You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF)…
A: Disclaimer :- Since you asked multipart question, we are solving only first 3 parts as per…
Q: Using real GDP data without seasonal adjustment, a student said, “The US real GDP declined by 3% in…
A: The gross domestic product (GDP) is a metric for measuring a country's economic output. Countries…
Q: When Full employment GDP is less than equilibrium GDP, the economy faces A) Recession B) Inflation…
A: Full employment refers to the economic situation where all the labor resources in the economy are…
Q: The decline in real GDP from $1,000 billion to $500 billion considered a recession
A: Recession is the macroeconomic term which represents the contraction in the business cycle of the…
Q: Consumption is an important element of aggregate demand because it A) is the most volatile…
A: Aggregate demand basically refers to the total amount of demand for all the finished goods and usual…
Q: In what year and quarter did U.S. real GDP first exceed its pre-recession level?
A: The great recession in the U.S. was a combination of financial crisis with deep recession. The great…
Q: In early 2001 investment spending sharply declined in the United States. In the 2 months following…
A: Since both consumers spending and investment spending are components of aggregate demand (AD). So…
Q: In Country 1, the values of the aggregate variables in 2020 are given as follows: Country 1 (in…
A: National income accounting is highly significant for any economy as it offers a well-structured and…
Q: According to the textbook definition, a recession occurs if ___ GDP decreases for ____ Question…
A: If nominal GDP decreases for consecutive 2 quarters,then recession occurs.
Q: In the first quarter of 2020, US real GDP declined about 9%, due to the economics shocks from the…
A: Gross Domestic Product(GDP) is the total value of goods and services produced within the borders of…
Q: Recessions can be caused by a) a decrease in Aggregate Demand ONLY b) an increase in Aggregate…
A: Recession: It means a contraction in a business cycle when an economy decline generally.
Q: Which of the following components of consumption spending typically sees the largest decline in…
A: A recession is a time of financial compression rather than development. During such periods, the…
Q: Following a demand-side recession, what happens to full employment GDP (C+I+G) after a few…
A: When talking about demand-side recession, it is the situation when people reduces their demand for…
Q: The seasonally adjusted data below depict the performance of the economy States in 1949.…
A: Macroeconomic analysis provides a comprehensive picture of the financial environment of an economy.…
Q: Recessions hit parts of the economy differently. What part of the economy is usually hurt the…
A: Introduction A recession is a substantial slowdown or decline in economic activity. Generally, a…
Q: According to graph1 why and how a decrease in the blue line could cause a decrease in the orange…
A: Based on Graph 1, a decrease in the blue line (S&P/Case-Shiller U.S. National Home Price Index)…
Q: Aggregate consumption decreases as consumer confidence falls. Aggregate demand shifts (Click to…
A: Consumer's consumption depends on the level of confidence. .
Q: True or False (Why?): An increased price level reduces the quantities of investment goods and…
A:
Q: In recent years, which of the elements of aggregate demand has become the main driver of growth in…
A: Gross Domestic Product (GDP) is the measure of the economic activity of a country. It is the total…
Q: In our modern economy, the adjustment process necessary to eliminate a recessionary gap is very…
A: The adjustment process implies a self-adjustment mechanism through price adjustment. This…
Q: Suppose the economy experiences a "supply shock" due to a fall in oil prices. As a result, the…
A: Gross Domestic Product (GDP) refers to the total or final value of all the goods and services that…
Q: When a recession begins and ends is determined by the Business Cycle Dating Committee (chaired by…
A: Recession is a macroeconomic term that means that there is a great decline in general economic…
Q: Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now…
A: The economy was initially performing at the price level of $800 and a real GDP of 200 units. It is…
Q: Based on this definition, indicate which of the following transactions will be included in (that is,…
A: Gross domestic product refers to the final value of goods and services produced in a territory of a…
Q: Discuss characteristics of an economy that helps itself correct from a recessionary gap.
A: Potential GDP is the GDP that an economy can produce, given all its resources are at full employment…
Q: Which of the following statements is false? a) Trend GDP shows what the path of potential GDP would…
A: Trend GDP The predicted pace of increase of a country's productive capacity is known as trend…
Q: State whether the following statement is true or false, and explain why. If the statement is…
A: Here the given statement is : If the national economy shrank at an annual rate of 4% per year for…
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 sudden increase in consumer spending will shift the aggregate demand curve to the right and lower…
A: When consumers make changes in their spending decision, it will affect the price level and GDP level…
Q: Calculate growth in GDP under the following conditions (show calculations): Government spending…
A: Gross domestic product (GDP) refers to the total value of all the finished goods and services that…
Since 1950, expansions in the United States have become ________, while recessions have become ________. longer; longer shorter; shorter shorter; longer longer; shorter
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Question: The attached picture shows the aggregate demand/aggregate supply situation in the U.S. What is the value of actual GDP? What is the value of the GDP deflator? Assume that people and businesses become pessimistic about the future of the economy; how will this affect the graph above in the short run? (i.e., which curve(s) will shift, and in which direction?) After the short-run event in part b, what will happen to actual GDP? What will happen to the price level? After the short-run event in part b, describe how the economy is doing in terms of the business cycle (i.e., recession, full employment, expansion). What long-run adjustments will be made in this economy as a result of the short-run changes in part c? How will the curve(s) shift in response to these long-run adjustments? After the long-run adjustments in part e, describe how the economy is doing in terms of the business cycle (i.e., recession, full employment, expansion).The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as . True or False: Small ups and downs in real GDP follow a consistent, predictable pattern. True False Which of the following probably occurred as the U.S. economy experienced declining real GDP in 1957? Check all that apply. Industrial production increased. Home sales increased. Consumer spending declined. Retail sales declined.Deflation is particularly bad for an economy in recession for all of the following reasons EXCEPT a-with deflation people spend less expecting prices to be lower in the future b- the rising prices makes goods more expensive c- with deflation the value of assets declines while the value of loans does not - this lowers wealth and further depresses spending
- As a result, firms reduce; increase reduce; remain the same accumulate; decrease reduce; decrease accumulate; increase accumulate; remain the same large amounts of unplanned inventory, and GDP and employmentA coincident indicator will change before a recession begins. True or False And whyThe gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2023. Scenario Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown on January 6, 2023. It sells the car at a dealership in Dallas on February 2, 2023. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2023. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2023. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) Using wood from a red maple tree on your Michigan property you make a birdhouse in 2023. A similar birdhouse sells for $55 in a craft store. Sleepytown, a…
- The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as ________ (options: a recession, a business cycle, an expansion) True or False: Short-term fluctuations in real GDP are irregular and unpredictable. Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958? Check all that apply.A. Industrial production declined.B. Consumer spending increased.C. The unemployment rate declined.D. Home sales declined.On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year. options a) businesses b) households c) services d) governmentThe trough of the business cycle: O is a temporary maximum level of real GDP. comes before the recession phase. comes right after the expansion phase. is a temporary minimum level of real GDP.
- This economy experienced a contraction in the years On the first graph (showing real GDP), this contraction is seen as a period in which the level of real GDP On the second graph (shovwing annual change in real GDP), this contraction is seen as a period in which the growth rate of real GDP True or False: This economy was experiencing an expansion in 1991. False TrueFind the linear demand and Supply curves that are consistent with each year:Price level (GDP deflator, 2012=100) What happens in the economy when firms are no longer able to meet the demand for their output? Draw an aggregate demand curve. Label it AD. 135- Draw an aggregate supply curve. Label it AS. 125- Draw a point at the short-run macroeconomic equilibrium. Label it 1. Draw a point on the AS curve at which firms are unable to meet the demand for their output. Label it 2. 115- Prices When firms are unable to meet the demand for their output, 105- A. short-run aggregate supply is greater than long-run aggregate supply; rise 95- O B. the quantity of real GDP demanded is greater than the quantity of real GDP supplied; rise C. aggregate demand is greater than short-run aggregate supply; 85+ 18.0 19.0 20.0 21.0 22.0 rise Real GDP (trillions of 2012 dollars) D. the quantity of real GDP supplied is greater than the quantity of real GDP demanded; >>> Draw only the objects specified in the question. fall Click the graph, choose a tool in the palette and follow the…
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)