If an economy is not expanding and the economy is therefore suffering from high unemployment, then would putting more money in the economy make matter better or worse

Q: Criticize Keynes in two points on the equality between savings and investment.

A: The Keynesian model assumes that in the short run the prices of the goods are constant and the…

Q: A recession in the United States is likely to raise the growth of real GDP in Europe. Do you agree…

A: Since Europe is the largest trading partner with the U.S., a recession in US will have a major…

Q: Briefly discuss the classical view of the labor market. Specifically, explain what type of…

A: The classical economic school of thought was prevalent in the world until the 1930s where the great…

Q: Just true or false: There is general agreement among Macroeconomists about how the macro economy…

A: The above statement is false. Explanation: This is because in macroeconomics, there are different…

Q: Outline the appropriate fiscal and monetary policy measures required to restore this economy to full…

A: GDP = C + I + G + X - M GDP in 2019 = 47.9 + 18 + 0 + 20.2 - 28.5 = 57.6 GDP in 2020 = 35.8 + 16.2 +…

Q: Q11 Assume that investment does NOT depend on the interest rate. A reduction in the money supply…

A: c. Reduction in the investment A reduction in the money supply would lead to the contraction in the…

Q: Assume a country would like to increase investment by limiting consumption.  What would be the point…

A: If a country increases investment by limiting consumption then the aggregate demand will increase.…

Q: What impact does full employment have on the economy?

A: When all the labor resources in an economy are utilized in an optimum manner or in the most…

Q: Can we print as much money to increase consumer spending and allow the aggregate to shift to the…

A: In an economy, aggregate demand can be increased with the help of monetary policy as well as fiscal…

Q: Use the extracts and your knowledge of economics to assess the view that when an economy experiences…

A: Negative economic shock is an unexpected event that affects the economy in a negative way, by…

Q: Question attahed in image

A: A decrease in the price level of a particular commodity means that the consumers are now able to…

Q: At which point would the government be most likely to try to stimulate the economy

A: Government: It refers to the people who focus on the growth of the economy. The government helps…

Q: why is it not possible for governments to efficiently provide everyone with free healthcare and free…

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

Q: Briefly describe the difference between a so-called real business cycle and a more traditional…

A: Many regions of the world have experienced macroeconomic instabilities such as the Great Depression…

Q: If investment and consumption expenditures fall and cause GDP to fall, what is an appropriate…

A: The fall in the investment and the consumption expenditures would result in the fall in the…

Q: The advent of the word processor reduced the time it takes to write and revise documents. This has…

A: Both technological expertise and data relevant to manufacturing practises are used to assemble Scar…

Q: Government sometimes intervene to stabilize the economy. As such, briefly explain why the Bangko…

A: It can be seen that the government plays a significant role in stimulating the economy by changing…

Q: When real GDP declines during a recession, what typically happens to consumption, investment, and…

A: In an economy, any change in the real GDP will have a significant impact on the economic variables…

Q: A friend of yours expresses the opinion that the only resource that is important in the macroeconomy…

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the…

A: Aggregate demand is defined as the total demand of all final commodities and services at a given…

Q: Real GDP is better than nominal GDP if    a. we want to measure the decline in wages.  b. we want to…

A: GDP or Gross Domestic Product refers to the final value of total goods and services produced in an…

Q: to stimulate the economy. During a recession, the government can engage in

A: A period of temporary economic decline during which trade and all the economic activities are…

Q: Keynes viewed consumption as an activity based on psychology. Discuss how the work of David Laibson…

A: Psychology-Law of Keynes: According to his view when income increases then the consumption level…

Q: If real GDP depends only on capital, labor, and technology, an increase in the money supply will…

A: Answer: If the real GDP depends on capital, labor, and technology then an increase in the supply of…

Q: John Maynard Keynes was the first to show that government policy could be used to change aggregate…

A: John Maynard Keynes is considered to be the most important and popular economist of the early…

Q: the classical economists, if the quantity of money that people wanted to save was greater than the…

A: Answer to the question is as follows :

Q: Recent economic reports forecast an increase in the interest rate, which likely increases…

A: Aggregate demand is affected by the change in the rate of interest. Higher rate of interest leads to…

Q: An article in The Economist magazine noted that 'the economy's potential to supply goods and…

A: The GDP is the shortening utilized for the GDP. The cash worth of the multitude of finished…

Q: Which of the following would NOT cause a shift in AD? Select one: a. A reduction in interest rates…

A: The aggregate demand curve,or AD curve, shifts to the right as the components of consolidated…

Q: HOW  AND  WHY WAS THE PROSPERITY AND ECONOMY OF THE 1950’S AND EARLY 1960’S SOUNDER AND MORE STABLE…

A: The prosperity and economy of the 1950s and early 1960s was sound and more stable than that of the…

Q: Y =  C +  S even when the economy is not in equilibrium.  True Or False

A: In an economy, saving is the part of income which is not spent on consumption expenditure, and so Y…

Q: The president has to make any changes to the economy through the U.S Mint? True or False

A: The purpose of the country U Mint is to manufacture, collect, and distribute precious metals,…

Q: )Give an example of something that could have caused this. ) What happens to GDP and price level? =)…

A: "Since you have asked multiple parts, we will answer only first three parts for you, if you have any…

Q: Test What is macro economics?

A: Macroeconomics – It is the branch of economics that studies the entire functioning of a national…

Q: Who is the new prime minister of Japan ?

A: The Japanese Government is the country's national government. The Japanese government is divided…

Q: What happens to each sector of the economy when recession occurs?

A: The recession can be defined as a phase in the business cycle which characterised by a general…

Q: What industry sectors are most likely to add jobs during a down economy and an improving economy…

A: A down economy is referred as an economy facing Recession. A period when there is decline in the…

Q: people tend to spend more money when the economy experience a

A: The overall condition of the economy as it progresses through four stages in a cyclical manner is…

Q: Suppose the economy is such that the current GDP is great than potential GDP. If the government does…

A: When the current GDP is higher than the potential GDP of a country it means the economy is…

Q: Explain how prospects for the UK economy will be affected depending on whether Brexit and Covid have…

A:

Q: Member of Parliament, Mr. Parks, is alarmed at the state of the economy. Unemployment is excessively…

A: Answer: Fiscal policy: fiscal policy is the policy of the government to change government…

Q: For Keynes involuntary unemployment existed only when the real wage was too high, but for Clower…

A: Keynes Involuntary unemployment has been one of the situation, that has lead to the workers ability…

Q: Suppose an economy is hit by natural disaster and its natural resources decreases. Show graphically…

A: The AS-AD {"aggregate supply- aggregate demand"} model is described as a way of depicting the…