What is likely to be true at the trough of the business cycle? A. Real GDP, unemployment, and inflation are all likely to increase.   B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing.   C. Real GDP, unemployment, and inflation are all likely to decrease.   D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.

Q: Which of the below is true about the above case? a. The natural rate of unemployment is above the…

A: Initial Equilibrium: => Y = A * K^0.5 * L^0.5 => Y = 9 * 16^0.5 * 9^0.5 => Y = 9 * 4 * 3…

Q: 18. The phase of the business cycle that follows (goes after) a recession is known as the: recovery…

A: The phase of business cycle are expansion, peak, contraction or recession, trough and then again…

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: Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the…

A: At full employment, Real GDP is equal to Potential GDP.

Q: Real interest rates tend to ________ during the recession phase of the business cycle and ________…

A: "Business cycle measures the fluctuations in the economy over time." There are four stages in the…

Q: Suppose the economy is operating at a point where output is less than the natural level of output.…

A: A recessionary situation, often referred to as a recessionary gap, occurs when the actual level of…

Q: If the economy is self-regulating as Classical theory assumes,and it is in a recessionary gap, then…

A: As per Classical theory, wages and prices adjust to economic shocks, so they economy always returns…

Q: Which of the following statements is correct?   a. Inflation and unemployment are negatively…

A: Concepts:Inflation- It is the situation when the power of purchasing of a currency decreases over a…

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: Which of the following statements is TRUE? a. the unemployment rate does not tell anything about…

A: Duration of unemployment implies the length of time a person is classified as unemployed.…

Q: In the following examples, is inflation creating winners and losers at no net cost to the economy or…

A: Inflation implies a consistent elevation in the general price level of goods and services. Commonly…

Q: Suppose the economy is currently in short-run equilibrium at an output below potential level of…

A: A short run competitive equilibrium occurs when the pricing is such that the total quantity the…

Q: What are the main functions of the commercial bank in the indian economy?

A: Essential Functions  1. Commercial Deposits – Commercial banks acknowledge stores from their clients…

Q: Bob cannot find a job because he does not have the required skills.

A: Lack of required skill will leads to jobless.

Q: D. the grocery industry 2. The difference between a recession and a depression is: A. a recession is…

A: The distinction between a recession and a depression lies in the severity and duration of economic…

Q: When a recessionary gap exists, actual output______ potential output and the rate of inflation will…

A: A recessionary gap, or contractionary gap, happens when a country's genuine GDP is lower than its…

Q: If the economy is in long-term equilibrium and cost of energy for production increases, which of the…

A: The long-term equilibrium is determined where aggregate demand is equal to both the short-run and…

Q: If interest rates are high in the country, this will result into ___________. a. a decrease on the…

A: Interest rates and inflation rates tend to be inversely proportional. The economy expands and…

Q: When there is an inflationary gap, current real GDP is __________ potential real GDP, and the…

A: The market value of all final goods and services produced in the economic territory of country over…

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: is inflation that results from a decrease in the aggregate supply curve while the aggregate demand…

A: Inflation refers to the general increase in the all over price in an economy.

Q: Which statement is true about inflation? A. As inflation rises, unemployment usually stays the same.…

A: The situation that depicts a general rise in the level of prices of goods and services in the…

Q: Rational expectations believe that a. the government must change government spending and taxes…

A: Human Beings make rational decisions. They weigh the pros and cons of all situations and then take a…

Q: 6) Classical cconomists believe ill A. Lack of aggregate demand B. Negative supply shocks C. Lack of…

A: Answer is given below

Q: Which of the following are true  1. Inflation squeezes profits. 2. Firms raise prices to offset…

A: Answer is given below

Q: Why do some economists think inflation in 2022 was undercounted and in reality was much higher?…

A: The objective of the question is to understand why some economists believe that the inflation rate…

Q: Which of the following are counter-cyclical indicators in an economy a. Inflation b. Unemployment c.…

A: Counter cycle indicators refers to the indicators that moves in the opposite direction of economic…

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: The vertical portion of the aggregate supply curve shows that at full employment an increase in the…

A: Macroeconomics studies the economy as a whole. It analyzes the national income, employment,…

Q: If there is persistent inflation Select one: a. long-run aggregate supply is constant. b. there is…

A: The rate at which the general level of prices for goods and services in an economy rises, leading to…

Q: In the short run, there is a positive relationship between   A. inflation and unemployment   B.…

A: In economics, the term short run usually refers to a comparatively short time span during which…

Q: A falling price level is called as   a.  disinflation.   b.  deflation.   c.  a…

A: In economics, price refers to the market value of a good or service as it is the amount of money…

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: A mild period of falling incomes and rising unemployment is called a:       A.  business cycle…

A: The period of boom and bust is the alternating periods of economic development and decline is the…

Q: True or False:,1. Economists are not completely in agreement on what constitutes money for all…

A: “Since you have posted multiple questions, we will provide the solution only to the first five…

Q: business cycle

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

Q: What is the central idea of the real business cycle theory? A. Fluctuations in economic activity are…

A: The Real Business Cycle (RBC) theory is an economic theory that suggests fluctuations in economic…

Q: John Maynard Keynes fundamentally disagreed with Adam Smith in that according to Keynesian Theory:…

A: The theories of the economist giants smith and Keynes have been bridged apart from their school of…

Q: Liberals think that unemployment is underestimated because of _____________________. Conservatives…

A: Unemployed are those who falls in working age bracket, are willing and able to work at the market…

Q: Economists believe that the United States is experiencing full employment when the unemployment rate…

A: An economic scenario known as full employment occurs when all of the labour resources are being…

Q: Only do the last part where it says If the above process continues to completion, the following…

A: Money Multiplier=1​/Reserve Requirement Given the reserve requirement is 16%, or 0.16, the money…

Q: 1. Explain the factors that causes demand-pull inflation. 2. Explain the factors that causes…

A: Inflation refers to the  rise in general price level over period of time . here general price level…

Q: The economy starts out at full-employment equilibrium. Some events then occur that generate…

A: Cost push inflation can be defined as inflation which occurs due to rise in input costs like rise in…

Q: In the short run, an increase in the quantity of money in the economy causes: a. A decrease in…

A: Quantity of money is the amount of money available with the people of the society.

Q: 60. Over the course of an economic expansion or boom we typically see GDP growth that is the…

A: GDP(gross domestic product) is the sum total of value of final goods/services produced in an economy…

Q: Initially, demand-pull inflation will OA. increase the price level and increase real GDP. B. shift…

A: Demand pull inflation means inflation caused by the demand factors ( where demand curve shifts to…