The table below shows several possible situations for an economy in terms of outputgaps and the rate of change of wages. Real GDP (Y) is measured in billions of dollars.Assume that potential output (Y*) is $800 billion.a. Compute the output gap (Y - Y*) for each situation and fill in the table. (Enter yourresponses to the nearest whole number. Use the minus sign to enter negativeпитbers.)Real GDPOutput Gap(billions ofdollars)Rate ofSituation (billions ofdollars)WageChangeA750- 3.0 %В775- 1.5 %8000.0 %8151.0 %E8402.0 %

Given:Potential GDP=$800 billion

Answered: The table below shows several possible…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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The following information is given for an economy: Labor Force of an Economy Number of People (millions) Total population 46.5 Children under the age of 16 8.5 Retirees 7.8 Employed 23.9 Unemployed 2.5 Not actively seeking employment 3.0 Homemakers 0.8 Instructions: Round your answers to one decimal place.…
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The table below shows the total expenditure on a basket of goods and services. Use this information to calculate index numbers for the cost of a basket of goods and services in each period. Assume Period 1 is the base year. Round to one decimal place. Provide your answer below: Period 1 Period 2 Period 3 Period 4 Total Expenditure $1,100 $1,350 $1,400 $1,450 Period 1 Period 2-Period 3 = Period 4 = | Index Number
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In the long run, as a result of the economic prosperity abroad, the price level the quantity of output the natural level of output, and the unemployment rate the natural 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?
An individual worker is laid off because his firm is in financial trouble. Why would this event be of more interest to a microeconomist than to a macroeconomist?
Q1 What is "capital"? The salary we pay employees Please give just answer. There is no need to explain. The money we pay to the government O Money invested in a building or machine to help us make products Money we make when customers pay us O None of the above Q2lf a country experiences high GDP and inflation, followed by a lower GDP and deflation, this is an example of O Unemployment Recession the Business Cycle O Supply and Demand None of the above Q3 What causes inflation? O People don't have enough money O People have too much money O People have too much money and many businesses want some of that money O People owe a lot of money O The government causes inflation by rais ing interest rates Q4 The Water and Diamond Paradox explains: O Why supply and demand always meets in the middle of a graph Marginal utility of diamonds O Why water is inexpensive while diamonds are so expensive O Why water is so expensive while diamonds are inexpensive O None of the above Q5 The unemployment…
1. 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.
4
If subsidies for research and development on new technologies lead to an increase in the average productivity of labor, what will most likely happen to real GDP per capita and long-run aggregate supply (LRAS) for a given population size? A B C D E Real GDP per capita will decrease, and LRAS will increase. Real GDP per capita will decrease, and LRAS will decrease. Real GDP per capita will increase, and LRAS will increase. Real GDP per capita will increase, and LRAS will decrease. Real GDP per capita will decrease, and LRAS will not change. T
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