Fluctuations in gas price before and after 1970s great recession. Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Question

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Answer 1

Question

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

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5. We learnt the following equation in the class: Ak = sy - (n + 8)k where y = ko. Now, I transform this equation into: Ak/k = sy/k - (n + 8). I want you to use a diagram to show the steady state solution of this equation (In the diagram, there will be two curves - one represents sy/k and one represents (n + 8). In the steady state, of course, Ak/k = 0). In this diagram, the x-axis is k. What will happen to this diagram if the value of n increases?

Not use ai please

3. A country has the following production function: Y = K0.2L0.6p0.2 where Y is total output, K is capital stock, L is population size and P is land size. The depreciation rate (8) is 0.05. The population growth rate (n) is 0. We define: y = ½, k = 1 and p = . Land size is fixed. L a) Find out the steady state values of k and y in terms of p, the per capita land size.

Answer 2

Question

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

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Answer 3

Question

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

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Answer 4

Question

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

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Answer 5

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

Answer 6

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

Answer 7

Chapter 27, Problem 1BCQ

To determine

To explain:

Fluctuations in gas price before and after 1970s great recession.

Introduction: The recession is the slowdown in an economy for a period of time. A recession occurs when there is less spending (Aggregate demand) in an economy. Recession increases unemployment because, in hard economic times when production is slowing down, firms are less willing to hire workers.

Answer 8

Expert Solution & Answer

Explanation of Solution

Prices rose in the 1970s due to less innovation which resulted in the excess demand for the fuel but after the innovation in the automobile industry and entrance of less fuel consuming cars decreases the demand for fuel. The great recession creates unemployment and less industrial productivity. Less production means less demand for industrial fuel, therefore, the demand for fuel start falling after the recession.

Hence, the prices of gas fell after the innovation in the automobile industry and less demand for industrial fuel.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 27 - Prob. 1BCQ Ch. 27 - Prob. 2BCQ Ch. 27 - Prob. 3BCQ Ch. 27 - Prob. 1P Ch. 27 - Prob. 2P Ch. 27 - Prob. 3P Ch. 27 - Prob. 4P Ch. 27 - Prob. 5P Ch. 27 - Prob. 6P Ch. 27 - Prob. 7P

Explanation of Solution

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Chapter 27 Solutions