Which one of the following is most likely to cause stagflation? Group of answer choices An increase in the county's population. A decrease in international demand for a country's exports. An increase in input prices. A decrease in government spending.

Q: Indicate whether the following policy statement is Fiscal or Monetary or Neither Increase income…

A: Fiscal policy is the use of government spending and taxation to influence the economy. Governments…

Q: Suppose the Hong Kong economy is under recession. How does it affect the opportunity cost of going…

A: A recession is an economic situation where a country faces low demand, slow growth, and less…

Q: Price level B <OOOO C AD₁ E Real GDP A movement from point B on AD1 to point E on AD2 may result…

A: The aggregate demand curve is an indicator of the total of investment, consumption, government…

Q: An aggregated value is made up of many smaller values? True or False

A: The quantity of a good that customers are willing and able to buy at different rates over a given…

Q: Good government programs for the development in science and technology can be seen outright A in the…

A: Government makes various programs to deal with social and economic issues and to enhance the overall…

Q: When the price level falls Answer households want to lend more, so the interest rate rises making…

A: When the price level falls, inflation also falls. Since the real rate of interest varies inversely…

Q: As a result of the increase in business confidence, the interest rate would now be. O a) i4 b) i2 c)…

A: National savings reflects the supply of funds or investment supply in an economy. It is supplied by…

Q: A country starts in steady state. Due to a lost war, the country has to give up territory containing…

A: In economics, the expression "steady state" alludes to a condition wherein key economic factors…

Q: In the light of the scenario above discuss the monetary and fiscal incentives that worldwide…

A: Macroeconomic policy: This describes the actions taken by central banks and governments to control…

Q: Write an assessment report on how the COVID-19 pandemic has affected the South African economy and…

A: Evaluation report: impact of the COVID-19 Pandemic at the South African economy and GDP1.…

Q: changes in the national unemployment rate over a short period of time is it relating to macro or…

A: Answer: Introduction: Microeconomics: the study of microeconomics deals with the behaviour of…

Q: For most high-income countries of the world, GDP _________________ over time.     has proven to be…

A: High-income countries generally experience economic growth, which results in an expansion of their…

Q: The mathematical representation of the technological relationship between inputs and national output…

A: Charles Cobb and Paul Douglas were the first economists to denote a mathematical representation of…

Q: What point represents a recession? What point represents an unattainable point without trade or…

A: PPC: Graphical representation of the combination of two goods that can be produced in the economy in…

Q: An increase in the interest rate should increase investment spending. decrease consumption spending.…

A: Aggregate demand is the sum of Consumption spending, investment spending, government spending and…

Q: The quantity equation Group of answer choices tells us the aggregate level of production in society.…

A: Quantity theory of money tells us that money supply and the price level is directly proportional to…

Q: When the price level falls   households want to lend more, so the interest rate rises making the…

A: Demand is done by the consumers at given prices during given duration. Supply is done by the…

Q: Which of the following is an example of a final good or service? wheat a bakery purchases to make…

A: Computer purchased would be final good.

Q: exotic holidays and local holidays substitutes? Explain your answ

A: Substitute goods are those goods that can be used in the place of each other.

Q: A decrease in a country's capital stock occurs when Multiple Choice ____ businesses sell machinery…

A: Fixed Capitals: Fixed capitals are those capitals that are used for a longer time and play an…

Q: The economy does not grow once it reaches a steady state. This result is based on the assumption…

A: When talking about the steady state of an economy, it is considered as the point with highest output…

Q: If actual GDP is less than potential GDP: Group of answer choices businesses are producing at…

A: When Aggregate demand and aggregate supply are equal , goods market is in equilibrium . And it…

Q: Which of the following statements about the circular flow model is false? Business firms buy goods…

A: The circular flow model is the model which describes the flow of money from household to the…

Q: Consider a frugal closed economy without money market. Assume there is no government or…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.  The…

Q: Time 1.During an expansion GDP is (increasing/decreasing) O Increasing O Decreasing

A: Business cycle explains the ups and downs in the economy over a period of time. It shows cyclical…

Q: Aggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services.…

A: The aggregate demand refers to the total demand for all goods and services in an economy. It helps…

Q: An increase in GDP can result from an increase in Group of answer choices the labor supply.…

A: GDP is the value of all final goods and services produced within the domestic territory of a country…

Q: What are the arguments against austerity measures during a depression or severe recession?

A: Austerity is concerned with the economic related policies, which aims at decreasing the budget…

Q: The GDP understates national well-being because no allowances are  made for people not working as…

A: Yes, the assumption that GDP understates national well-being because no allowances are  made for…

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: 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: Which of these economic variables is procyclical and coincident? the government bond spread stock…

A: Business Cycle: The business cycle implies the economic cycle. It is the upward and downward…

Q: Which would likely increase the average level of interest rates for auto loans? Select one:   a.…

A: An interest rate is the percentage of the principal amount (the initial amount of money) charged by…