How real business cycle theory is different from the rational expectation theories of business cycle? explain in detail

Q: What is natural rate of unemployment? Why do you think unemployment as risen so sharply during…

A: Unemployment is when the people who are willing and able to work, cannot find the job in the…

Q: What are the two biggest recessions in terms of length and magnitude from the graph, the shaded…

A: You have asked multiple questions. We will answer the first question for you. If u want any specific…

Q: 12- -Recessionary period (1974 - Recessionary period (1980 II-1982 IV) 10- 1975 D Recæssionary…

A:

Q: Suppose that everyone who has looked for a job for more than six months gave up in despair and…

A: *Answer:

Q: There is a persistent fear that there will be a high level of deflation. Many economists warn that…

A:

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: a. Why firms pay efficiency wage to their labor? b. According to efficiency wage model, how the…

A: As there are multiple questions, the first question would be answered. To get answers to the rest of…

Q: a) How do you think output and unemployment is related? Explain and provide a global or domestic…

A: A). The relationship between output and unemployment because output is when an organization or firm…

Q: Explain how and why it might be possible for the unemployment rate to fall during the worst part of…

A: A recession is a period of economic contraction. During recession businesses experience decreased…

Q: . Construct a five-equation econometric model of the state of Indula. There will be a consumption…

A: The fives econometric models are the following:

Q: If discouraged workers are included in the determination of the unemployment rate, what effect will…

A: Discouraged workers are those who are not encouraged in doing the work.

Q: When Sue graduated from college, she got a job with a starting salary of $30,000. When Sue's sister…

A: Sue got a job with starting salary of $30,000 Jan got a job with starting salary of $36,000 after…

Q: OR owth rate 10.9% 5.1% -3.2% 0.3% ployment rate 1.5% 3% 10.1% 7.2% on rate 6% 3.8% -1% 1.5% 4.…

A: The business cycle is the ups and downs of the economy wherein the output, employment as well as…

Q: 5. Computer forecasting models have Group of answer choices -been able to forecast changes in…

A: The computer forecasting models are mainly used for forecasting the exogenous variables that are not…

Q: On March 5, 2013, the Dow Jones Industrial Average set a new high. The index closed at 14,253.77,…

A: Index closed=14,253.77Movement in a day=125.95Now,Index opened=Index closed-Movement in a dayIndex…

Q: The graph compares employment rates in three sectors of the economy, in the UK betwe- c000-2010.…

A: The Organisation for Economic Co-operation and Development defines the employment rate as the…

Q: Will's expenditures on food for three consecutive years, along with other values, are presented in…

A: Here, the given table shows total expenditure made on 2009, 2010, and 2011at different price level.

Q: Calculate expected after tax real interest rate in following two scenarios ScenarioNominal Interest…

A: The real interest rate is the rate that is adjusted to reduce or remove the inflation effect so that…

Q: What kind of indicator is the rate of unemployment? Explain your answe

A: A condition in an economy where a maximum percentage of the people are staying home having no jobs…

Q: 2. The idea that the business cycle is recurrent means that the standard pattern of…

A: Business cycle : A business cycle have different phases and each phase started after the end of one…

Q: Question 2. Let p(t) represent the consumer price index at any given point in time. The change of…

A: Change in price index: p. = 2+3t + 0.5it  p0 =100

Q: What are the key ideas of the real business cycle model? How does it explain business cycle…

A: The real business cycle theory makes the fundamental assumption that an economy witnesses all these…

Q: Q2. Define business cycle. Explain the different phases of business cycle. Also elaborate the…

A: 'Business Cycle' or 'Economic Cycle' refers to upward and downward fluctuations of a country's Gross…

Q: Graph an economy which suffers a negative supply shock. How does this effect inflation…

A: Supply shocks are the changes in supply of a good which can change price and output level Negative…

Q: Let's suppose that 1/4 of the unemployed people in Jollyland found a job in 2016. What is the…

A: Unemployment generally means a state of the economy in which people who are fit and willing to work…

Q: ) What is the relationship of frictional, structural, seasonal and cyclical unemployment to the…

A: Frictional unemployment occurs when a worker changes the job from one to another. He remains…

Q: (Figure: US Business Cycle Expansions and Contractions) From the data on averages for all cycles we…

A: Meaning of Recession and Expansion: The term recession refers to the state under the business…

Q: There is no cyclical unemployment. There is zero unemployment.

A: An economy in which the rate of unemployment equals the rate of inflation being non-accelerating of…

Q: b. Explain in some detail the 4 phases of the business cycle, Please don’t include Depression as one…

A: Business Cycle: It refers to the fluctuation (rise or fall) in the economic trade that occurs over…

Q: 2. Why is it important to keep track of Business Cycles? Explain. Why is it more important to look…

A: The business cycle or the economic cycle refers to the fluctuations in the level of economic…

Q: 19. Which of the following policies does NOT increase structural unemployment? (A) Shutting down…

A: Structural unemployment - This type of unemployment occurs when there is mismatch of workers skills…

Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.