The term ”full employment GDP” is synonymous with which of the following? (A) aggregate GDP (B) Keynesian zone (C) macroeconomic equilibrium (D) potential GDP
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5. The term ”full employment
(A) aggregate GDP (B) Keynesian zone (C)
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- 4) economy is in a recession and decrease(s) when the U.S. economy is expanding. A) Consumer spending B) Planned investment C) Net exports D) Unplanned investment usually increase(s) when the U.S.In the aggregate expenditure model, what is NOT necessarily a characteristic of an economy in equilibrium?(a) The aggregate expenditure line is equal to the 45-degree line.(b) Aggregate expenditures are equal to income.(c) Investment equals saving.(d) Nothing is pressuring the economy to move to a higher or lower level of output4. Other things being constant, what will be the effect of each of the following (or real GDP)? (a) An increase in the amount of liquid assets consumers are holding (b) A rapid upsurge in the rate of technological advance (c) A sharp increase in the real interest rate
- 6. What is role of the government and economic policy during recessions according to Classical economists? According to Keynesian economists? (22. Which of the following is the technical definition of a recession? A. a fall in GDP for four consecutive quarters B. a rise in unemployment for two consecutive quarters C. a fall in GDP for two consecutive quarters D. a rise in unemployment for four consecutive quarters4. The maximum quantity that an economy can produce, given its existing levels of labor,physical capital, technology, and institutions, is called:(A) real GDP (B) potential GDP(C) aggregate supply (D) aggregate demand
- (22) Assume that the economy begins in long-run equilibrium and that the federal reserve decides to use open market operations to sell bonds. In the short run, what happens to the level of GDP? Group of answer choices (A) It goes down. (B) It goes up. (C) It stays the same.Question 20 Revisit Later Q. "The National Statistical Office, which is under the Union Ministry of Statistics & Programme Implementation, has released its estimates for gross domestic product (GDP) in the first quarter (Q1) of this fiscal year, 2022-23. The headline is that GDP at constant prices in the first quarter showed 13.5 per cent growth year on year. This is a deceptively high level, given the base effect." The following options are given to explain why this number is deceptively high. i. Most expectations were for quarterly GDP growth in the 15-16 per cent range year on year. ii. Given the base effect, the growth rate of 13.5 percent is in fact a clear disappointment. iii. It needs to be remembered that the equivalent quarter of the previous year, April-June 2021, was when the devastating second wave of the coronavirus epidemic was raging through the country. iv. Even though there was no national lockdown as draconian as that observed during the first wave in 2020, activity…(a) Suppose the price level in an economy rises while the money wage rate remains constant. What happens to the quantity of real GDP supplied. How will this affect the aggregate supply or aggregate demand curve? What if the potential GDP increases? Which aggregate curve is affected and how? (b) Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4,000 3,700 100 150 -50 From the table data provided, answer the following questions. The numbers in the table are in billions of dollars. Show all calculations. a. What is the equilibrium level of real GDP? b. What is the Marginal Propensity to Consume? c. What is the multiplier value in this economy? d. If potential GDP is $4,000 billion, is the economy at full employment? If not, what is the condition of the economy? e. If the economy is not at full employment, by how much should government spending…
- 1. Real GDP decreases during (a).The movement from through to peak (b). The movement from below potential GDP back to potential GDP. (c).A decrease in unemployment (d). The movement from peak to through.Need help with macroeconomic review questions! 1) How does the following transaction affect Canada’s GDP? Unless otherwiseindicated, assume that each of the subsequently mentioned people resides in Canada. (j) James Bond purchases a martini, shaken not stirred, for $12, in Calgary. 2) Consider a country with no government and no international trade. The country’seconomy has fixed prices and interest rates. Let C = 300 and I = 150 + 0.75Y . Whatis this country’s GDP? Show your work. 3) Consider a country with no international trade. The country’s economy has fixedprices and interest rates. Let C = 300 + 0.2Y , I = 250, and G = 0.5C. What is thiscountry’s GDP?21. Assume that we are at the natural rate of GDP, meaning we do not have a recession or an expansion, and then the Central Bank raises interest rates, how can this create a recession (A) our business investments will increase and our exports will decrease (B) our business investments will decrease and our exports will increase C) our business investments will decrease and our exports will decrease (D) our business investments will increase and our imports will increase