Assume that an economy currently experiences an decrease in both employment and real GDP. The economy is in which phase of the business cycle? Question 15 options: A) expansion B) trough C) peak D) recession
Q: Determine which statements about the Great Recession, in comparison to average post‑World War II…
A: The Great Recession was a global economic downturn occurred between 2007 and 2009.
Q: Condition 1:National Unemployment Rate Rising,Rate of Inflation Falling. Question1:Given the…
A: Unemployment refers to the situation where an individual belonging to the labor force, capable of…
Q: a change in business investment a determinant of aggregate demand or aggregate supply? What happens…
A: The entire amount of money or sales profits that the seller expects to receive from the sale of…
Q: If the economy's full employment rate of output is $6.0 trillion, what will happen to the…
A: As per the table above, equilibrium occurs when Total output = Planned aggregate expenditure The…
Q: Assume that the economy is initially in short-run macro-equilibrium. If firms in the economy become…
A: Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the…
Q: six (6) strategies that the Minister of Finance could implement to reduce the consequences of the…
A: Recession is a situation in which all the economic activities are shut down.
Q: Which of the factors below will NOT be a feature of economic recessions? Higher unemployment Low…
A: Answer: Correct option: C (Low government spending) Explanation: A recession refers to the period…
Q: What variable allows our macroeconomic model to automatically adjust GDP back to full employment…
A: Equilibrium GDP in short-run occurs at the intersection point of AD and SRAS If actual GDP <full…
Q: An economic recession means that _______. a. GDP is critically high b. Output and employment is down…
A: An Economic Recession is defined as where there is a decline in the performance of a country and…
Q: All of the following are causes of Great Recession except Group of answer choices Increased…
A: The Great Recession was a period of substantial general deterioration, i.e., a recession,…
Q: In the long run, the economy has gone through a full business cycle. at least five years have…
A: Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Macroeconomics Question No.5 State whether the following statements are true, false or…
A: Marginal Propensity to consume: refers to the ratio of change in consumption to the change in…
Q: Short-run fluctuations are all of the following EXCEPT a-sometimes called business cycle movements…
A: Short run fluctuations are not permanent.
Q: In the Keynesian framework, for each of the following events which might cause a recession and/or…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three please repost the…
Q: Fearing a recession, the government decides to give citizens a tax rebate to buy Christmas gifts.…
A: The government makes a decision according to the current market situation and future expectations.…
Q: Households tend to increase their spending during a recession because they realize that more…
A: Recession:- Recession can be defined as a period of economic contraction during which economic trade…
Q: Compare and contrast the effect of expansion and recession on selected variables like output and…
A: Let us understand some key terms such as - Business cycle aggregate demand, aggregate supply,…
Q: 20.Which of the following statements is correct? a The interest rate that is usually reported is…
A: c If the nominal interest rate has decreased and the real interest rate has also decreased,…
Q: The policies of the federal government influence the outcomes of the various activities in that…
A: Aggregate demand refers to the total expenditure incurred by all the sectors of the economy during a…
Q: business cycle
A: ‘Business cycle’ refers to a fluctuation in production, employment, trade and general activity in an…
Q: Consumer spending fell significantly at the start of the pandemic by 13.6%, but increased by 5.6% in…
A: A recession is characterized as a prolonged period of low or negative real GDP (output) growth,…
Q: During the severe economic downturn during the great recession the federal government provided an…
A: According to Keynesian economics, the market outcome can be changed by the government intervention…
Q: A number of macroeconomic variables decline during recessions. One of these variables is the GDP.…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: When an economy is operating in a positive output gap (Inflationary Gap) which of the following must…
A: An inflationary gap is where potential GDP is less than the actual real GDP in the economy.
Q: Suppose the economy of a hypothetical country has reached its long-run macroeconomic equilibrium…
A: Since the question you have posted consists of multiple parts, we will answer the first four…
Q: Potential real GDP is defined as: Group of answer choices The quantity of output that the economy…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: The following graph approximates business cycles in the United States from the first quarter of 1955…
A: Economic Boom refers to period when businesses strating to make money as a result of mass…
Q: Using the IS–LM diagram, show the effects on output and the interest rate of a decrease in…
A: The IS curve expanded as the Investment-Saving curve and the LM curve expanded as the…
Q: When an economy is operating in a negative output gap (Recessionary Gap) which of the following must…
A: A recessionary gap is where the potential output is higher than the actual output in the conomy.
Q: When disposable income increases, consumption expenditure decreases by the same amount. does not…
A: Disposable income (sometimes known as disposable personal income) is the amount of money available…
Q: magine an economy in which nominal GDP grew between 2018 and 2019 and real GDP fell during that same…
A: During 2018 and 2019 nominal GDP increase and real GDP decrease.
Q: Which of the following causes of an economic expansion is consistent with real business cycle…
A: An rise in the degree of economic activity, as well as the commodities and services offered, is…
Q: Deflation is particularly bad for an economy in recession for all of the following reasons EXCEPT…
A: In deflation, prices fall resulting in lower spendings.
Q: Suppose that the government believes the economy is not producing goods and services at its optimal…
A: Answer is given below
Q: You are shown the statements below. Which of the following is/are true? Statement 1: During a…
A: Meaning of Business Cycle: The term business cycle refers to the measurement of whether an economy…
Q: Macroeconomists are interested in two types of phenomena: economic growth and business cycles.…
A: When talking about macroeconomics, two primary phenomena that are analyzed by macro-economists are…
Q: as you analyze the dismal United States economic environment, you notice that unemploymentis…
A: All the countries goes through changes and fluctuations in the economic activities. Sometimes, the…
Q: In the context of economic recession, explain monetary and fiscal measures that should be…
A: Answer: Economic recession: recession refers to the period of a general decline of economic…
Q: happens when firms and workers underestimate future prices in the economy. what would happen to…
A:
Q: What industry sectors are most likely to add jobs during a down economy and an improving economy…
A: A down economy is referred as an economy facing Recession. A period when there is decline in the…
Q: How do Classical economists and Keynesian economists differ in their perceptions of how well markets…
A: Since you have posted multiple questions, we will solve first question for you if you want other…
Q: f inventories are increasing, what part of the business cycle could we be entering? Group of answer…
A: A business cycle is a cycle of fluctuations in the GDP around its long-term growth rate. It is…
Q: If the economy produces at the point of long-run macro-economic equilibrium then real GDP Question…
A: GDP is used for measuring the value of economic activity in the country.
Question 15 options:
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
Step by step
Solved in 2 steps
- Which of the following economic environments would most likely be associated with a recession? Unemployment falling to 30-year low Unemployment increasing from 5% to 9% during the year New businesses opening in record numbers while new housing starts reach a 10-year high GDP growing at an annual rate of 4.2%recessions have occurred roughly once every six years since the 1960s. the unemployment rate usually decreases during a recession and increases shortly after the recession ends. real GDP usually remains roughly constant during a recession and decreases shortly after the recession ends. changes in real GDP over the business cycle are largely attributable to changes in investment over the business cycle. Question 2 Which of the following is most commonly used to monitor short-run changes in economic activity? Answer the inflation rate real GDP aggregate demand aggregate supply Question 3 During recessions investment Answer falls by a larger percentage than GDP. falls by about the same percentage as GDP. falls by a smaller percentage than GDP. falls but the percentage change is sometimes much larger and sometimes much smaller Question 4 The classical model is appropriate for analysis of the economy in the Answer long run, since evidence indicates that money is not neutral in the…Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is high because of the increase in demand? Downturn Expansion Peak Trough
- Question 3 on Topics 6 & 7 COVID-19 has sent the economy of Classica into recession. The finance ministry has advised the government to lower stamp duty and other purchase service charges for those wanting to buy existing houses in order to boost economic growth. As well, the finance ministry wants the government to also cut company taxes as this will lead to firms increasing their level of investment in the economy. The President of Classica has asked you, as her chief economic advisor, for your views. In particular, she wishes to know the following: Would a cut in stamp duty and other purchase charges on the purchase of existing houses really boost the economy? Your advise on this is ____________________ (provide your answer and justification on both the immediate and future impact. Feel free to use external resources to assist you in your answer if you prefer). Is the claim that lower company taxes adding to…How can shipping delays and shortages of intermediate goods cause a recession? Why may these issues lead to a reduction in consumer spending? Consider how consumers change the timing of their purchases to reflect the market.Consider the following statements about the business cycle. Which of the following statements is incorrect ? A. A rise in economic activity from the cycle trough to the peak indicates that the economy is in an expansion. B. A fall in economic activity from the cycle peak to the trough indicate that the economy is in a recession. C. The business cycle is a regular fluctuation of real GDP around potential GDP that is predictable. D. The business cycle is a periodic cycle in real GDP and employment.
- QUESTION 9 Is it possible for the unemployment rate to go down while the number of unemployed workers increases? Yes, if the labor force participation rate increases sufficiently Yes, if the working age population grows sufficiently No since unemployment is always bad for the economy Yes, if discouraged workers reenter the labor force to fill job openings in sufficient numbers No, any increase in the number of unemployed will result in an increase in the unemployment rate Yes, if the labor force participation rate decreases sufficientlyas you analyze the dismal United States economic environment, you notice that unemploymentis decreasing, durable goods orders are increasing, housing starts are on the rise, and capital spending budgets are gettinglarger. Based on your outstanding knowledge gained in BUSI 1301, you are now confident that the overall economy is headed towards what phase of the general business cycle?The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of increasing real GDP is known as a __________ (options: bust, business cycle, boom).
- The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as ________ (options: a recession, a business cycle, an expansion) True or False: Short-term fluctuations in real GDP are irregular and unpredictable. Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958? Check all that apply.A. Industrial production declined.B. Consumer spending increased.C. The unemployment rate declined.D. Home sales declined.Question 3 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.Identify the statement that correctly states the short run and long run problems relating to the business cycle 1.Both short and long run problems are the same. 2.We need to smooth the trend while making sure the long term growth is as much as possible. 3.We need to smooth the short run fluctuations while making sure the trend of the economy is going up as much as possible. 4.We need growth in the short run and more growth in the long run
