Full employment output is the level of output that firms in the economy supply when A- all capital is fully utilized B- the unemployment rate is zero C- taxes are zero D- consumption decreases and saving decreases

Q: Stagflation is caused by an increase in cost-push inflation. The increase in costs can be caused by…

A: Given the statement is Stagflation is caused by an increase in cost-push inflation. The increase in…

Q: The table describes four possible outcomes for 2017, depending on the level of aggregate demand in…

A: The aggregate supply curve shows the quantity of total goods and services produced and supplied in…

Q: During recessions, taxes tend to   a. rise and thereby increase aggregate demand.   b. fall and…

A: Recession- It is a contraction in the business cycle when there is a decrease in economic activity.

Q: The new home market tends to be highly cyclical.  Prices and home sales depend on the broader…

A: Mortgage interest rate is one of the ways to secure a loan. This kind of loans are mainly taken to…

Q: The new home market tends to be highly cyclical.  Prices and home sales depend on the broader…

A: Copper pipes and wiring are used in making new homes.  Shortage of copper pipes and wiring will…

Q: Determinants of Demand include the following:     (a) Changes in supply     (b) Prices of goods…

A: Demand refers to the quantity that consumers are willing to buy at specific point of time .  Demand…

Q: According to the supply-side economics principles promoted by President Ronald Reagan, economic…

A: The supply side economics is centered towards the aggregate supply and factors affecting the supply…

Q: When the price level changes, which of the following variables will change and thereby cause a…

A: Effect on real wealth: The intuition behind the important wealth effect is that when the worth level…

Q: When the price level falls Answer households want to lend more, so the interest rate rises making…

A: When the price level falls, inflation also falls. Since the real rate of interest varies inversely…

Q: Use supply and demand graphs to illustrate the increase and subsequent decrease of lumber prices…

A: Suppose the market for lumber is in equilibrium as shown below, the equilibrium is maintained at…

Q: The quantity of real GDP supplied at different price levels is reflected by the Select one: a. total…

A: Equilibrium occurs at such a price level where real GDP supplied equals real GDP demanded.

Q: The aggregate supply curve for the long run is: Group of answer choices Represents potential output,…

A: Long-run:- The term "long-run" refers to the amount of time it takes for nominal wages and other…

Q: If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that…

A: Phillip Curve is a economic model that shows the inverse relationship between unemployment and rate…

Q: When the price level falls   households want to lend more, so the interest rate rises making the…

A: Demand is done by the consumers at given prices during given duration. Supply is done by the…

Q: Macroeconomics would be concerned with     a) the effects of wage increases on steel…

A: The economics as a study includes the use of resources available with the society in the most…

Q: 6. In macroeconomics, _____________________ denotes the relationship between the total quantity of…

A: We know that , aggregate demand has very much importance in macro economics .

Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: Assume that the economy is in a full employment equilibrium. There is an improvement in overall…

A: The economy is said to be at the full-employment level if it's all the factors of production are…

Q: If actual GDP is less than potential GDP: Group of answer choices businesses are producing at…

A: When Aggregate demand and aggregate supply are equal , goods market is in equilibrium . And it…

Q: Total planned expenditure is also called ______. a. Exports minus imports b. Aggregate demand c.…

A: Since planned expenditure is pre planned by the government where they will going to spent, they…

Q: The new home market tends to be highly cyclical.  Prices and home sales depend on the broader…

A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…

Q: A decrease in interest rates caused by a change in the price level would cause a(n):     A)…

A: The aggregate demand curve represents the total quantity of all goods and services demanded by the…

Q: The most likely explanation for why the price index is rising is because   People are receiving…

A: Price indices are the methods through which the level of price increase or price decrease is gauged…

Q: To decrease output the government could adopt policies that :Select one a. increase aggregate supply…

A: Equilibrium Point: The point at which the aggregate demand curve and aggregate supply curve cuts…

Q: Explain in detail what will happen to the natural rate of unemployment and the real wage when firms…

A:

Q: An inflationary gap occurs when: * a. we need to increase prices b. real output is too low. c.…

A: The government's expansionary monetary policies are thought to be the primary cause of the…

Q: Imagine the price level in an economy changes from 250 to 225.  We know that prices in the economy…

A: Aggregate demand refers to the total amount of goods and services demanded by all individuals in the…

Q: The three main objectives of the national economy are price stability, full employment, and economic…

A: Fiscal policy is the term used to describe the way in which the government manages the amount of…

Q: Which of the following would NOT be a determinant of demand?    A. the price of related goods  B.…

A: Option B does not effect demand.  Price of inputs affect the Supply of a good, not demand.

Q: During a recession the equilibrium wage will tend to Select ] v due to a [ Select ] v in [Select ] […

A: During recession, equilibrium wage decreases.

Q: Explain how equilibrium wages and employment change in the economy when there is an increase in the…

A: The increase in working-age immigrants affects the equilibrium wages and employment of existing…

Q: Assuming this market is representative of the economy as a whole, this economy:     1)  is highly…

A: Macroeconomics is the study of economics that deal economy as a whole. It deals with the issues that…

Q: Describe how different parts of the economy may have experienced shifts and changes in supply and…

A: Components that can move the call for bend for labor and merchandise, making an exchange quantity be…

Q: Demand is likely to be price elastic if: 1. the buyers can use normal inflation to explain the…

A: "Demand is said to be price elastic if an small change in price of a good will create a substantial…

Q: Even an economy that is operating at peak efficiency will have a positive unemployment rate.…

A: Unemployment rate is the percentage of labor labor willing and able to work, are unable to find a…

Q: An increase in the price of oil will cause   Question 56 options:   Real wages and unemployment to…

A: In an economy, oil is the common input resource that can be used in the production of various…

Q: a) Explain how equilibrium wages and employment change in the economy when there is an increase in…

A: Wage setting curve: It helps determine the real wage necessary at each level of economy-wide…

Q: Which of the following is​ true?   A. Potential GDP decreases as the price level increases.   B. At…

A: Aggregate supply refers to the entire amount of output that companies will create and sell—in other…

Q: Potential GDP corresponds to the concept of A aggregate supply. real GDP. C real GDP per capita.…

A: PLEASE FIND THE ANSWER BELOW.

Q: Inflation and Interest Rates) Using a demand-supply diagram for loanable funds, show what happens to…

A: There is an inverse relationship between the real interest rate and expected inflation rate. So, if…

Q: (a) "A permanent (unanticipated) increase in the labour income tax causes an im- mediate boost in…

A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Unemployment would decrease and prices would increase if a. aggregate supply shifted left.…

A: Unemployment: Joblessness is a term alluding to employable people and looking for work yet can't get…

Q: The graph above refers to a significant increase in individual income taxes, taking them to their…

A: The aggregate demand is summation of consumption expenditure, investment expenditure, government…

Q: The data also indicate that wages tend to be downward rigid.  This means that    a. wage declines…

A: Sticky wage theory states that wages are sticky moving down which means they tend to be downward…

Q: What is the effect of an increase in the price level when the money wage rate remains​ unchanged?…

A: The short-run aggregate supply(AS) in Keynesian models is upward slanting/slopping, showing that…

Q: The new home market tends to be highly cyclical.  Prices and home sales depend on the broader…

A: A robust economic expansion raises personal incomes.  An increase in personal income will increase…

Q: This is another all-or-nothing question. In a supply-driven economy, which of the following…

A: The answer is - c. if the economy is closed what is not consumed by household a government invested…

Q: If the government increases expenditures on goods and services and increases taxation by the same…

A: The expenditures on goods and services that are produced on their own account are the imputed values…