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- When the economy goes into a recession, realGDP _________ and unemployment _________.a. rises; risesb. rises; fallsc. falls; risesd. falls; falls1a. If an economy experiences a long period of unexpected deflation, who will bear the bigger cost – borrower or lender? 1b. If deflation in 1a) is expected, who will bear the bigger cost?1. Explain the difference between Keynesian economics and Classical economics by mentioning the complete name of the economist who develops the theory/model. 2. Describe each of the components of the GNP equation and which one you feel can distort GNP the most.
- how the nominal interest rate, the real interest rate, and inflation are relatedthrough the Fisher equation.30: In a given economy, families save 10% of their salaries; the current annual taxation rate is 25%; arranged speculations are relied upon to be $ 60 billion; and the import / export imbalance is about $ 2.5 billion. Current government consumptions are $ 270 billion every year. The full limit GNP level is $ 1,060 billion. What is the current shortage? What is the full employment shortfall? Look at the two. Is the current financial plan expansionary or on the other hand contractionary? Clarify.What is generally true of consumers in a recession? a. The rich suffer as the poor cut back on spending Ob. Everyone cuts back on spending, but only the low income consumer segments suffer. Everyone suffers and cuts back on spending c Od Many reallocate spending and buy less-on credit cards.
- a.Given what you have learned about the U.S. Business cycle over the past 60 years, please explain 4 ways you can use that information to enhance your odds of achieving future personal success. Please do not talk about your financial portfolio and playing around with the stock market. b. Explain in some detail the 4 phases of the business cycle, Please don’t include Depression as one of them. including the characteristics of each. Be thorough! You should have at least 4 characteristics for each phase! Include in your discussion on how each phase of the business cycle might impact your life. c.Explain in detail, 4 possible causes of change in the direction of the business cycle. You are looking for things that are out of the control of the government. Do not talk about fiscal or monetary policy tools here. Don’t say inflation or recession!Which of the following is a deflationary measure? Select one: a. Discouraging savings b. Decreased Interest rate c. Encouraging borrowing d. Increased Government spending e. Increased taxesThere is a persistent fear that there will be a high level of deflation. Many economists warn that it may be worse for the economy than if there is high inflation. Suppose that Herb is in debt and has to pay a 5.25% nominal interest rate. He expected inflation to be 1.50%. Instead, inflation is −2.00% (deflation). Multiple Choice Question... Because the economy is experiencing deflation of −2.00%instead of inflation of 1.50%, Herb's real interest rate, compared to what he expected to pay, has A) decreased, so Herb feels poorer. B) increased, so Herb feels richer. C) decreased, so Herb feels richer. D) increased, so Herb feels poorer.
- ANS ONLY 2 PLEASE THANKS Suppose you live in a community of 5,000 people where everyone wants to work and seeks employment. If 4,000 people are over 16 years old and 3,000 of them are employed, what is the unemployment rate in this community? What are the three major types of unemployment? What are their causes? Discuss the costs associated with high inflation. Describe the four phases of the classical business cycle explaining how employment is typically affected during each phase?Explain it correctly not copy paste Q)In the Real Business Cycle model, what is the effective investment and the equilibrium investment?Suppose both nominal GDP rises by 10 percent and real GDP rise by 2percent. What has happened to the general price level? What is the inflationrate? Show your calculation.
