Why might “belt-tightening” by consumers in a recession be unwelcome?

Q: Can you explain how positive and negative supply shocks affect market equilibrium in terms of price…

A: Supply shocks are unexpected events that significantly change the supply of a product or commodity,…

Q: Explain in details how high inflation can lead to a recession in several ways

A: Inflation refers to the rise in the general price level or the cost of the goods and services rises…

Q: Please  explain and discuss supply-side economics.

A: Supply-Side Economics helps in increasing aggregate supply (AS). supply-side also helps in creasing…

Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods

A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…

Q: In what way can inflation distort purchasing power over time for individuals?

A: The economic growth of an economy is generally measured as the growth rate of GDP over time. GDP is…

Q: Explain why a sudden, large burst of inflation could lead to a recession?

A: Inflation is the continuous rise in the price level of commodities in a nation over a period of…

Q: How do changes in aggregate demand and aggregate supply might cause inflation in the economy?

A: The aggregate demand is the summation of the demand from all the economic agents. There are mainly…

Q: How can shipping delays and shortages of intermediate goods cause a recession?   Why may these…

A: In economics, recession refers to a fall in industrial or trade activity that implies a decline in…

Q: In a situation of recession, what are the types of goods that will see their demand increase? Give…

A: Recession refers to a period of temporary economic fall during which trade and industrial activity…

Q: What would happen to short- and long-run aggregate supply if unusually good weather led to bumper…

A: To determine the impacts on the short run aggregate supply and the long run aggregate supply if…

Q: Recalling Clasical, Keynesian, and now Supply side economics. How would you describe each school

A: The objective of this question is to provide a brief description of three major schools of economic…

Q: visual/graphic representation of how a decrease in consumer spending shifts the aggregate demand…

A: Philips Curve and Aggregate Demand and Supply: The Phillips curve is a significant economic theory…

Q: If mortgage rates fell to 0 percent ("free money"), why might consumers still hesitate to borrow…

A: In general, the term mortgage rates refer to the interest rate charged by the financial institution…

Q: If the price level decreases, what will happen to the level of real GDP supplied?   It will usually…

A: Real GDP: It is used to measure the value of economic output that is adjusted for price changes.

Q: Using an AD-AS diagram, explain what happens if personal income taxes increase.

A: Increase in personal tax decreases disposable income, which decreases consumption spending, thus…

Q: if the economy is in a recession, who is at fault?

A: Recession refers to the situation of lower economic activity. During recession, economic activities…

Q: What were the causes and consequences of the Great Recession?

A: The great depression as the name itself suggest is one of the greatest event in the history. It…

Q: Suppose most business executives expect a slowdown in the economy.  How might this situation affect…

A: The loss of business and consumer confidence leads to an economic recession.

Q: What happens when firms and workers underestimate future prices in the economy? Explain the answer…

A: Expectation about future price and actual price is plays a significant role in the growth of…

Q: Define what economists mean when they use the word: “recession”?

A: GDP is used to measure total income in the economy.   It is the value of final goods and services…

Q: What is worst recession in France in terms of magnitude

A:

Q: What factors influence the demand for non-durable goods during an economic recession?

A: Economic recessions are periods characterized by a significant decline in economic activity spread…

Q: How can they say that "Rising prices are symptom of an expanding current supply"?

A: Inflation is the rate of increase in prices over a given period of time. Inflation at macro level…

Q: Distinguish between the general inflation rate and the average inflation rate for specific goods?

A: Inflation refers to an economic phenomenon during which a continuous increase in the general prices…

Q: If a nation’s central bank, such as the US Federal reserve, believes the economy is headed toward a…

A: Meaning of Recession and Expansion: The term recession refers to the state under the business…

Q: how a decrease in government spending on infrastructure affect the aggregate demand curve?

A: In an economy, government spending is one of the components of aggregate demand that is included…

Q: Why does the “quality/new goods bias” arise if we calculate the inflation rate based on a fixed…

A: Inflation occurs when the price level of all goods and services in the economy experiences a…

Q: A stimulative monetary or fiscal action should increase aggregate demand. What factors may limit the…

A: Answer -

Q: Give a one line definition for the term "DEFICIENT DEMAND" In macro economics.

A: # Macro economics is that branch of economics which consider the economy of the country as a whole.…