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- How can an economy experience economic growth with no inflation? An economy can experience economic growth with no inflation if _______. A. it does not engage in international trade B. the government has a balanced budget C. aggregate demand increases at the same pace as potential GDP D. aggregate demand increases at a faster rate than potential GDPBusiness cycles are pervasive in all macroeconomic variables. Does the relative durations of expansions and recessions help explain the fact that long-term economic growth has been positive?What two variables are most important for sustained long-run growth? options: Increasing capital and increasing total factor productivity Decreasing taxes and increasing government expenditures Increasing money supply and decreasing interest rates Increasing consumption and increasing investment in inventories
- With regards to macroeconomic growth, the most common goal is to achieve: a gradual/progressive increase in GDP a fast and significant increase in GDP in a short amount of time high unemploymentThe following table shows Spain’s (annualized) quarterly real GDP growth rates for the 2007–2012 period. (Roman numbers refer to quarters.) a) Plot real GDP growth rate in a graph, and identify a trend in the data. b) Based on the data shown, identify the beginning (i.e., the year and the quarter) of the current recession.Describe at least four positive economic growth sources for an economy and how they effect aggregate supply according to the AD/AS model. Pay close attention to the debate's emphasis on national output, unemployment, and inflation. The AD/AS model must be used to demonstrate your points.
- a) List at least four (4) sources of positive economic growth in an economy and discuss how these sources affect Aggregate Supply within the AD/AS model. In the discussion pay particular attention on National Output, Unemployment and Inflation. Your discussion must be illustrated by the AD/AS model. b) Illustrate and explain how economic growth from the four (4) sources discussed above can be differentiated from economic efficiency using the Possibilities Production Frontier diagram.When analyzing key macroeconomics to assess GDP growth/decline, how would you measure the performance relative to sequential and year-to-year data?THE COLLAPSE OF THE GROWTH TIGERS Following in the footsteps of Japan, many other east Asian countries followed suit and generated unprecedented growth rates that averaged about 10% per year Hong Kong and Taiwan were first, followed by South Korea and Singapore. More recently, Thailand, Malaysia, and Indonesia posted growth rates of close to 10%. All of these countries maintained these superheated growth rates for at least two decades. Thus it came as a major shock to economists and investors around the world when the Thai baht uncoupled from the dollar and devalued in July 1997. The Malaysian ringgit, Indonesian rupiah, and the South Korean won quickly followed suit, with all of these currencies falling more than 50% relative to the dollar during late 1997 and early 1998. The currencies of Singapore, Hong Kong, and Taiwan also came under pressure but were not devalued. Not only did the superheated growth rates of the growth tigers suddenly come to a halt, but these countries plunged…
- Based on the Neoclassical Growth Model explain in detail what are the critical determinants of economic growth. Also, specify related assumptions.What is the direct or indirect relationship between Consumption behavior and the Solow Growth Model? Please include any important equations.what is the "Old Growth Theory," and what role does it play in Macroeconomic policy?
