Q: Suppose, initially the Australian economy is atfull employment(in other words the economy is atthe…

A: The Australian economy is at full employment level, it means the aggregate demand (AD) and short-run…

Q: What is stagflation? Explain by using AD-AS model and graph

A: Meaning of Stagflation: The term stagflation is a somewhat extended version of inflation, under…

Q: State both definitions of a recession, the old/traditional definition and the new/modern definition.…

A: Recession is a macroeconomic concept. It is a part of business cycle and it comes after the Boom or…

Q: What makes the 2007-2009 recession special?  1. because of the length of the recession 2. because of…

A: Great recession and the causes is complex and involve several forces.

Q: Economic Cycle Curves Construct the AD, SRAS, and LRAS curves for an economy experiencing (a) full…

A: LRAS =long run average supply,  SRAS = short run average supply,  AD = aggregate demand In short run…

Q: When we say that economic fluctuations are “irregular and unpredictable,” we mean thata. the…

A: Okun's law states that unemployment declines by 1%, GDP declines by 2%.  When one macroeconomic…

Q: With the  AD-AS graph, what variable is on the vertical axes?

A: The AD( Aggregate Demand) and AS(AS) model is the one that represents the national income along with…

Q: Which of the following scenarios indicates that an economy which might be in a recession? Select the…

A: Real GDP is the value of final goods and services produced in the economy within a given period of…

Q: Make a graph that shows where Indonesia currently is on the business cycle. Can you also include an…

A: The economies around the world work according to the changes in the changes in their consumption…

Q: The factor leading to business cycles in the real business cycle theory is represented by changes in…

A: In Real Business Cycle theory the business cycles are considered real. They represent the possible…

Q: Which of te following does not contribute to the real business cycle explanation of business cycle?…

A: Real business cycle theory doesn't incorporate aggregate supply.

Q: The movements in the production of motor vehicles and RVs Select one: O A. experience large…

A: Business cycle: The regular Ups and downs in the economic activities are known as the business…

Q: If intersection between AD and AS is much higher than the natural rate of output, how would the…

A: Demand and supply  In perfect market competition the optimum quantity is produced where the demand…

Q: Which of the following could explain the shift shown in the graph above form AD to AD'? (Check all…

A: Here the aggregate demand curve shift left ward.

Q: Based on the figure, which of the following statements is true? O The unemployment rate increased in…

A: GDP growth rate is calculated by taking the ratio of nominal GDP to the real GDP and multiplying it…

Q: According to Real Business Cycle Theory, which of the following events could lead to a downturn in…

A: The real business cycle focuses on the real variable or changes in the technology and productivity.…

Q: The Great Recession was different from a typical recession since World War Il in that a) the rate of…

A: A recession is defined as the period of low or negative real GDP (output) growth with a large…

Q: Consider the two graphs below. Then answer the questions. Initially both economies on the Left and…

A: Steady-state is an economic concept that aims towards finding an equilibrium between output growth…

Q: Using AD-AS model, explain how would each of the following events affect the economy both in the…

A: The full employment is a situation in which resources are fully employed and output levels thus…

Q: e business cycle

A: The Business cycle refers to changes or volatility in the economic growth. It is characterized by…

Q: If the GDP deflator increases, we say that we had   Group of answer choices a) recession. b) none of…

A: In an economy z GDP deflator is used to compare nominal GDP and real GDP or to show the ratio of…

Q: A number of macroeconomic variables decline during recessions. One of these variables is the GDP.…

A: Recession is the state of economy in which the performance of the economic activities are declining…

Q: Over the business cycle, O A. only real GDP fluctuates around its trend and potential GDP remains…

A: The business cycle model shows how a country's real GDP changes over some time, going through stages…

Q: what are the theories of the cycle in economic gowth and fluactuations?

A: Keynesian Economist Keynes assumes that economic fluctuations occur in different periods of time of…

Q: If the economy goes into a recessionary gap,  a.) How will the change in wages affect short run AS…

A: A Recessionary Gap is defined as a gap which occurs when the real GDP of an economy is lower than…

Q: Regardless of many assumptions, an equilibrium business-cycle model can go a long way in matching…

A: Business-cycle: It refers to the conditions under which the growth and decline have been taken into…

Q: Which of the following correctly describes the business cycle? O It is the constant rise in GDP over…

A: “Hey, thank you for the question. Since there are multiple questions posted, we will answer first…

Q: In the real business cycle model, suppose the government spending increases temporarily. Determine…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three subpart for you…

Q: Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time…

A: Potential GDP is the natural rate of output produced when the economy is at full employment.

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 real GDP declines during a recession, what typically happens to consumption, investment, and…

A: The measure that depicts the final value of goods and services produced in the economy during a…

Q: Suppose you are interested in isolating the cyclical component of a macroeconomic time series (such…

A: The time series viewpoint—cycles being dictated by different arbitrary shocks which are proliferated…

Q: The term business cycle refers to the Select one: O a. short-tenm ups and downs in the price level O…

A: Answer is given below

Q: An economy has an unemployment rate of 11% and real GDP grows by 2.5% annually. A treasury official…

A: Okun’s law gives the theoretical construct about the relationship between unemployment and GDP,…

Q: The outbreak of COVID-19 adversely attacks most economies. Some economists argue that the impacts on…

A: Supply chain refers to the network between the producer and different kinds of sellers of the…

Q: Evidence indicates that a recession occurs at about the same time as a decrease in investment.…

A: The real business cycle theory is one of the approaches to understand the business cycle in an…

Q: Which statement about business cycles in the United States is most accurate? Multiple Choice…

A: The economy of the United States alternates between periods of expansion, when employment and…

Q: Economists find in a business cycle, a peak represents the end of and a trough represents the end of…

A: The business cycle shows the trends of the gross domestic product (GDP) and how it expands/changes…

Q: Explain how the real business cycle model can explain why the price level is countercyclical at some…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

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: The IS curve shows the combinations of, and where the goods market is in equilibrium. A. the real…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. Suppose that the oil price sharply increased for a while, which increased production costs,…

A: An adverse supply shock decreases aggregate production.   (A)   In the goods market with AD-AS…

Q: c) In this scenario, what do we call the difference between actual GDP and potential GDP? d) What is…

A: Gross Domestic Product is the value of all goods and services that are produced within the…

Q: real business cycle theory suggest that _______ not important in explaining short-term fluctuations…

A: The Real business cycle theory states that the fluctuations in the economy are largely explained by…

Q: Construct the AD, SRAS, and LRAS curves for an economy experiencing (a) full employment, (b) an…

A: a. Below is the curve when there is full employment. The above curve represents the Real GDP on the…

Q: Which of the following is not a phase or turning point of the business cycle? O A. recession B.…

A: