Macroeconomics (Cloth) (Instructor's)
10th Edition
ISBN: 9781319106003
Author: Mankiw
Publisher: MAC HIGHER
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Chapter 10, Problem 2QQ
To determine
Indicators of recession.
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Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year. Which data do you look at? How does the economy behave at the onset of a recession? Explain how unemployment changes over the business cycle. Why do these changes occur?
What is the relationship between the business cycle and economic growth, and how do government policies aim to manage economic fluctuations?A) The business cycle has no connection to economic growth, and government policies have no impact on fluctuations.B) The business cycle represents the periodic expansion and contraction of economic activity, and government policies, such as fiscal and monetary measures, aim to mitigate the negative effects of economic downturns and support long-term growth.C) The business cycle is solely influenced by consumer spending.D) Government policies only exacerbate economic fluctuations.
What happens after a peak in a business cycle? Discuss your answer. *
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- Type out the correct answer ASAP with proper explanation of the each step. Thank you. Which method used to predict recessions is based on ten key indicators of economic activity? A.yield curve B.gross domestic product C.National Activity Index D.Leading Economic Indexarrow_forwardWhat is short-term momentum? What are long-term reversals?arrow_forwardPlot these data points, and identify the four phases of the business cycle. Give a theory that may explain the cause of the observed business cycle. What are some of the consequences of a prolonged decline in real GDP? Is the decline in real GDP from $1,000 billion to $500 billion a recession?arrow_forward
- Refer to the graph shown below. At point A: Which is true? A: the economy has full employment B: economic growth is declining C: inflation tends to be declining D: wages can be lowered due to worker surplusarrow_forward1) What is the basic structure of the Austrian Business Cycle (i.e. what causes the business cycle, what happens during the business cycle, what are the results)? 2) Why is the Market For Loanable Funds that we studied earlier in our class important for understanding the Austrian Business Cycle theory? 3) How can the Austrian Business Cycle be used to explain the Great Recession of 2008 and the crash of the housing market?arrow_forwardThere are two theories regarding the cause of recessions. Between the two, which one contributes more to it? Explain thoroughly. Provide examples when necessary.arrow_forward
- For the following video please answer these questions. Business Cycle. http://www.youtube.com/watch?v=TXrOpjG4dUs 1. Refer to your text book and draw and label the Business Cycle. Be able to identify andexplain the four stages of the cycle. 2. State the characteristics of recession and expansion.3. What stage of the business cycle are we in at this time? What facts or data do youknow that support this.4. How does the business cycle influence an individual country’s economy and the actionstaken by its government?arrow_forwardDetermine which phase of the business cycle is associated with each event. a. Unemployment reaches its highest levels, while output reaches its lowest during (Click to select) - b. Decreasing unemployment and expanding production occurs during (Click to select) - c. The economy is at full employment and output is produced at full capacity during (Click to select) d. Real output is declining for at least two consecutive quarters is during (Click to select) (Click to select) a peak a recession an expansion a trougharrow_forwardWhich of the following keywords is most relevant for analyzing upswings in the stock market using Google Trends? A. Bullish B. Unemployment insurance C. Stocks to sell D. Bearish The data on the number of cellular phone subscribers is an an example of O A. interval data B. ratio data O C. ordinal data D. nominal dataarrow_forward
- During a certain period of time, the economic growth of a country is reflected through some phases of the economic cycle. What is a business cycle? Explain. What are the four phases of the business cycle? Explain each one. Do the four phases have a certain order? Explain your answer. Does an economic cycle have a specific period of months or years? Explain your answer.arrow_forwardEconomics please provide answer for question 2 and 3. Thanks Discuss the following questions in 3-5 paragraphs overall: (1) Why/how has Covid-19 led to a global economic recession? (2) While the originating place of Covid-19 was China, why do you think Western countries have experienced a sharper economic recession than China? (3) As per the definition(s) of recession that we discussed in Chapter 13, do you think Afghanistan is currently in a recession?arrow_forwardWhat are business cycles? What are their consequences?arrow_forward
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