Economists who support a hands - off approach believe that a cause of business cycles is O A. expectations. O B. government policy. O C. the paradox of thrift. O D. Say's Law. Government policy decisions to purposefully leave the economy alone or influence it can take the form of changes in OA. labour productivity. O B. prices. OC. government purchases. OD. unemployment.

Economists who support a hands - off approach believe that a cause of business cycles is O A. expectations. O B. government policy. O C. the paradox of thrift. O D. Say's Law. Government policy decisions to purposefully leave the economy alone or influence it can take the form of changes in OA. labour productivity. O B. prices. OC. government purchases. OD. unemployment.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST4: Keynes And Hayek: Contrasting Views On Sound Economics And The Role Of Government

Section: Chapter Questions

Problem 3CQ

See similar textbooks

Similar questions

1. Write in detail about business cycle with example of an economy(Country)? 2. Write about the Unemployment and also explain types of unemployment with examples? 3. Explain the long run growth?
Part C D The US labor market is such that in each month 2% of theemployed lose their jobs, while 25% of the unemployed find a job. We assume that unemployment is measuredat the month frequency. a. What is average duration of employment? b. What is the average duration of unemployment? c. What is the steady-state level of the unemployment rate? d. Assuming that the Chinese economy starts at rate of unemployment of 4%, what will be the unemploymentrate after 12 months? Explain the forces that lead to the change in the unemployment rate within one yearHint: Use unemployment dynamics formula and a method similar to the dynamics of capital in the Solowmodel. Use excel for calculations if needed.
economic Suppose that an economy’s production function is Cobb–Douglas with parameter a=0.3. a. What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent.What happens to total output (in percent)? The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent.What happens to total output (in percent)? The rental price of capital? The real wage? d. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?
how would scenarios A- Recession & B-Economic Boom affect the opportunity cost of going to college vs going to work immediately after high school? in which scenario is the opportuinty cost of going to college higher ? why ?
In 2019, a. what percentage of the labor force was employed? b. what percentage of the labor force was unemployed? c. what percentage of the total population was employed?
A.) Okun's law is stated as... Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... Then what is the expected annual growth rate of GDP? B.)Change in the Unemployment Rate = -0.2*(Percent Change in Real GDP - 2.5) ... If the percent change in GDP is 3%, and the unemployment rate starts at 5%, what is the change in the unemployment rate?
1. Write in detail about business cycle with example of an economy(Country)? ANSWER: ……………………………………………………………………………. 2. Write about the Unemployment and also explain types of unemployment with examples? ANSWER: ……………………………………………………………………………. 3. Explain the long run growth? ANSWER:
Question1) a) A labor market is in steady state equilibrium with unemployment rate u = 0.04 and probability of re-employment per month λ = 0.12. What is the probability of becoming unemployed in a month? b) What is the size of the labor force when the number of unemployed is U = 20,000? How long does an unemployment spell last on average? c) An increase in unemployment benefits makes the duration of unemployment spells 10 months. What is the new level of unemployment? d) In a simple job search model, the probability of an unemployed worker finding a job (λ) is equal to the probability of receiving a job offer (µ) times the probability of accepting it (p). Assume that the reduction in λ from part a) to part c) is not due to changes in unemployment benefits, but rather due to changes in µ. If p remains constant at 0.2, what is the reduction in µ? e) It is not realistic to assume that p remains constant. Explain why. Assuming that the wage distribution is fixed, in which direction…
Suppose that an economy’s production function is Cobb–Douglas with parameter = 0.3 a. What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage ?
Two main macroeconomic concerns are the problems of inflation andunemployment.a. What are the social costs of inflation? Explain TWO of them? b. What is natural rate of unemployment? Explain the TWO main causesof natural rate of unemployment. With reference specifically to ONEof these causes, suggest ONE practical government policy that reducesthe natural rate of unemployment.
a.Given what you have learned about the U.S. Business cycle over the past 60 years, please explain 4 ways you can use that information to enhance your odds of achieving future personal success. Please do not talk about your financial portfolio and playing around with the stock market. b. Explain in some detail the 4 phases of the business cycle, Please don’t include Depression as one of them. including the characteristics of each. Be thorough! You should have at least 4 characteristics for each phase! Include in your discussion on how each phase of the business cycle might impact your life. c.Explain in detail, 4 possible causes of change in the direction of the business cycle. You are looking for things that are out of the control of the government. Do not talk about fiscal or monetary policy tools here. Don’t say inflation or recession!
A positive oil shock: Suppose scientists discover a new way to extract oil fromdeposits that were previously thought to be unrecoverable. Te extra supply ofoil leads oil prices to decline by $5 per barrel. Explain the efect on wages, theemployment-population ratio, and unemployment—all for the overall economy.