Q: Suppose the real GDP of an economy is $520 billion dollars and its unemployment rate is 8%. If the…
A: The full potential level of output is the maximum output that can be produced if all resources are…
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A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…
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A: Answer -
Q: Which of the following shocks has the biggest potential to increase a country's potential GDP? O A…
A: Potential GDP refers to the level of output that an economy would produce if they are able to employ…
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A:
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A: True
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A: a.…
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A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
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A: Answer is given below
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A: Correct option is (a) $ 274 Disposable Income (DI) is $ 274 billion.
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A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.
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A: We have to find refer to the diagram.
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Q: recessions occur?
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A: Potential GDP basically refers to a measure of an economy's maximum, ideal output, which includes…
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- Macroeconomics: Assuming marginal propensity to consume is 0.5. If there is a shock to the economy that increases investment spending by 200 billion dollars what will the total Change to GDP be? (Ignore taxes and imports)Compare and contrast the effect of expansion and recession on selected variables like output and employment.Aggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services. B total spending, economy-wide, on domestic goods and services. C equal to C + I + G + (M - X). D total unplanned expenditure.
- Economists defined economic recession as more than 2 consecutive quarters in which there is a decline in real GDP a.) True b.) FalseWhat are the costs associated with large volatility in GDP? bouts of low taxes and high government expenditures bouts of high GDP growth and low inflation rate bouts of high interest rates and high national debt bouts of high inflation and high unemployment rateAccording to the textbook definition, a recession occurs if ___ GDP decreases for ____ Question 35 options: A) real; two consecutive quarters B) nominal; two consecutive quarters C) real; one quarter D) nominal; one quarter
- when equilibrium GDP falls belowpotential, an inflationary gap exists true falseWhat common rule of thumb do economists use to define a recession? A decline of 5% in GDP A decline of 10% in GDP One quarter of negative GDP growth Two quarters (six months)of negative GDP growthInflationary GDP is the amount by which equilibrium real GDP falls short of the full employment level of GDP. True or False
- The economy is characterized by the consumption function C = C(Y − T) = 500 + 0.75 (Y − T). If income increases by 100, and taxes increase by 20, then consumption will increase by: 40 80 60 375 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.Differentiate the macroeconomic effects that explain the causes of the differences of government spending in aggregate demand. Give a wider explanation.A boom may be caused by increase in aggregate demand in an economy. Explain how increase in aggregate demand leads to a rise in national income. (Using circular flow if income).
