A) Explain thoroughly how reducing recession works B) Explain why the presence of the built-instabilizer is important to managing the macroeconomy.
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A) Explain thoroughly how reducing recession works
B) Explain why the presence of the built-instabilizer is important to managing the macroeconomy.
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- In the basic real business cycle model, where prices are fully flexible, shocks to the dynamic aggregate demand always lead to: I. changes in real GDP. II. changes in inflation. III. changes in spending growth. A) I only B) I and III only C) II only D) I, II, and III E) II and III only F) None of the aboveAre TFP shocks a reasonable explanation for the business cycles Are TFP shocks a reasonable explanation for the business cycles we see in modern economies? Why and why not? Are TFP shocks a reasonable explanation for the business cyclesWhich of the following is not one of the possible general sources of shocks that can cause business cycles? Select one: a. Open market operations to of businesses to increase their global competition. b. Unexpected political events, such as peace treaties, new wars, or terrorist attacks, can create economic opportunities or strains. c. When productivity unexpectedly increases, the economy booms; when productivity unexpectedly decreases, the economy recedes. d. Irregular innovations may contribute to the variability of economic activity.
- Just true or false: There is general agreement among Macroeconomists about how the macro economy works and how to fix problems when it doesn't.Using the 3-equation model provide a detailed period by period description of theadjustment process for the following scenarios:(a) The economy is hit by a temporary inflationary shock (b) The economy is hit by a permanent positive aggregate demand shockEconomist who generally empgasize the importance of aggregate supply in determining the size of the macroeconomiy over the long run a- says law b-Neoclassical economists c-Keynes lasw dk- Neoclassical zone
- The global pandemic has caused tremendous damage to economic and public health across the world. With the vaccine rollout, there are strong expectations for a V-shape recovery in the US economy this and next year. Which of the following statements is inconsistent with the observations/experiences so far? a. From a historical perspective, the pandemic-induced recession is a highly unusual event for the economy and markets. Pandemic is not normally a thing that drives the business cycles. b. Even during the height of pandemic, the L-shape looked unlikely for a number of reasons, including rapid large-scale policy response, political willingness, and favorable financial conditions (such as low interest rate and US$ assets as safe assets). c. Looking beyond 2021, debt overhang (both public and private) is one of the downside risks to the global economic outlook. d. None of the above are inconsistent with the observations/experiences so far.Explain the role of expectations in the macroeconomy.Which of the following is not true about real business cycle macroeconomics: (a) is based on econometric and statistical modeling. (b) describes how productivity shocks affect the business cycle (c) determines that neither fiscal nor monetary policy is very important for macroeconomic performance (d) requires dynamic general equilibrium modeling
- Explain the effects of propensities, expectations and multipliers in causing a recession.Please Help! Make a general macroeconmic supply and demand showing Swedens econmy in 2019. attached is a sample of what it should look like! Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The business cycle will alternate, if two or more of the components of aggregate demand decrease or increase spending. True or False
