An increase in the price of oil will cause Question 56 options: Real wages and unemployment to rise The GDP Deflator and real GDP to fall Real GDP to rise and the GDP Deflator to fall Unemployment and the GDP Deflator to rise
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An increase in the price of oil will cause
Question 56 options:
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Real wages and |
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The |
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Real GDP to rise and the GDP Deflator to fall |
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Unemployment and the GDP Deflator to rise |
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- Assuming that the Consumer Price Index increases from 100 to 120... Group of answer choices Less money would be needed to buy the same amount of goods, implying that the value of money increases Less money would be needed to buy the same amount of goods, implying that the value of money drops More money would be needed to buy the same amount of goods, implying that the value of money increases More money would be needed to buy the same amount of goods, implying that the value of money dropsThere are five mainstream schools of economic thinking on issues There are five mainstream schools of economic thinking on issues relating to what government can or cannot do with respect to stabilizing the economy. What are these schools and how do they differ on issues concerning unemployment and inflation? There are five mainstream schools of economic thinking on issuesWhich of the following would decrease the unemployment rate? an increase in the minimum wage an increase in the efficiency wage an increase in labor union membership government aid to retrain unemployed workers
- Suppose Congress enacts a tax reform law, and the average federal tax rate drops from 30 per- cent to 20 percent. Researchers investigate the impact of the tax cut and find that the income subject to the tax increases from $600 billion to $800 billion. The theoretical explanation is that workers have increased their work effort in response to the incentive of lower taxes. Is this a movement along the downward-sloping or the upward-sloping portion of the Laffer curve?Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money. This monetary policy the economy's demand for goods and services, leading to product prices. In the short run, the change in prices induces firms to produce goods and services. This, in turn, leads to a level of unemployment. In other words, the economy faces a trade-off between inflation and unemployment: Higher inflation leads to unemployment.Macroeconomics is the study of the small aspects of large entities.the overall price level and the levels of unemployment and output.the interaction of consumers and producers in markets for particular goods and services.anything large.individuals in an economy. Flag this Question
- During a more typical recession spending on services __________ while during this pandemic recession spending on services _____________. Group of answer choices decreases, stayed about the same increases, decreased decreases, increased stays about the same, decreasedWhat are real prices? A real price is a price that has been adjusted for inflation. A real price is a price that has all factors (such as taxes) included. A real price is the price of a good/service plus the opportunity cost of consuming the good/service. A real price is the price of producing a good/service.Macro-economic recessions, like the one in 2008 – 09, are often related to the fact that consumers consume less of many of the goods they typically consume, even if the price level does not change significantly. Relate this behaviour to the budget line and indifference curves studied in this chapter, and justify your answer with graphs.
- Recent data from the Bureau of Labor Statistics show that the average price level for consumers rose 5.4% over the past year. While some are expressing concern over rising inflation leading the economy to “overheat,” there is some evidence indicating that this is due to the reopening of the economy as producers adjust to rising demand for goods and services. Many of the goods with the largest price increases, like bacon or cars and trucks, cannot have their production ramped up as quickly as demand is increasing. Other industries are facing supply chain challenges, like shortages of truck drivers. These problems are most likely to be short term, so, as supply catches up with demand, we can expect to see prices return to normal. As evidence, after spiking to record highs in early summer, lumber prices have now fallen below their price at the start of the year. The reason for the dramatic price increase earlier in the year was a combination of reduced supply in 2019 and a surge in demand…Milton Friedman argued nearly all economic fluctuations were caused by Multiple Choice sticky wages. changes in the money supply. unexpected demand shocks. changes in government spending.The real wage rate measures: the ability to purchase necessities vs. luxury goods the ability to purchase "normal" vs. "inferior" goods how economic decisions are influenced by the government the quality of goods and services that can be bought with nominal wages the quantity of goods and services that can be bought with nominal wages
