Answered: In the real business cycle, business…

In the real business cycle, business cycles are a. efficient and do not represent lost output b. occur when markets clear c. driven by technology shocks d. all of the above

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 3SQ

See similar textbooks

Related questions

Q: why does personal matter trip/travel has a high transport cost elasticity?

A: When talking about elasticity, it is the economic concept that is used to explain the responsiveness…

Q: If the demand function of a product is p - 0.5x + 90 where p denotes unit pric and x shows quantity,…

A: Demand function: p = -0.5x +90 Total revenue = Price* Quantity Here, Price = p and Quantity = x So…

Q: How the monetary policy would be able to manage inflation while managing economic growth?

A: The money supply is the supply of money by the central bank of the country. It means the various…

Q: Assume that Vietnam is an open economy(i.e it trades with the rest of the world) but does not allow…

A: The Mundell-Fleming model given by Robert Mundell and Marcus Fleming tries to integrate…

Q: Consider an individual whose utility depends on consumption and hours of leisure enjoyed. Answer the…

A: Utility is the level of satisfaction that consumers of a certain good derive from the good. The…

Q: DEMAND & SUPPLY EQUILIBIRUM

Q: 1. A firm has estimated that the fixed costs of operations for a new product at $4.5M per year.…

A: Solution:- 1) Here X = break even units Here TC = 4500000 + 250X TR = 1000X break even occurs when…

Q: QUESTION 5. The approach by Borjas (2003) on evaluating the effects on immigration ignores: (a)…

A: Question 5 The cross elasticity of demand refers to the change of one commodity's quantity with…

Q: Assume that 1) households hold no currency and 2) banks hold no excess reserves. The current reserve…

A: It is given that the central bank, sells $10M of bonds Reserve Requirement = 10%

Q: A firm produces two goods in pure competition and has the following total revenue and total cost…

A: Given: The total revenue function is TR = P1Q1 + P2Q2 The total cost function is TC = 2Q12 + Q1Q2…

Q: Consider a monopolist with a total cost function given as C(Q) = 1.5Q2 + 40Q that faces an inverse…

A: Monopoly maximizes profit by producing at a point where marginal revenue equals marginal cost and…

Q: 1. price of water to - decreases - increases 2. the behavior is an example of -- - - a prisoner's…

A: Disclaimer :- as you posted Multipart questions we are supposed to solve the first 3 questions only…

Q: Back to the "Battle of the Sexes" example, imagine that Brian is mad at Anna for some silly reason.…

A: We can use the backward induction after drawing the game tree for the player.

Q: explain how the currency of invoicing can be used as an offensive and/or defensive strategy?

A: An invoice currency refers to the currency in which a company bills its clients. When a buyer signs…

Q: a. Calculate nominal and real GDP per capita for 2009 and 2014. For 2009: Nominal GDP per capita =…

A: Formulas: 1. Nominal GDP per capita = Nominal GDP / Population 2. Real GDP per capita = Real GDP /…

Q: Which of the following statements is true? A. A price ceiling set below the equilibrium price in…

A: Price ceiling and price floor are the examples of price controls used by the government to stabilise…

Q: If LRTC is 200+5q-2(q)(q)+(q)(q)(q) the MC is..

A: The marginal cost (MC) of production is the difference in total production costs that results from…

Q: Use the chain rule to find dy/dx for th following : y= (7x^2-5)^9

A: If we have chain then have to differentiate twice. For eg: If y = (ax)n so here first we…

Q: Similarities of the effects of the Spanish Flu and the Ukraine-Russia War on the economies of…

A: Similarities The Spanish flue expanded in 3 phases: the first one in the springtime of 1918, the…

Q: Interpret and explain the diagram below, which illustrates the effect of airline regulations by the…

A: Regulation results in the implementation of a price floor. The price floor is a type of price…

Q: Don't use excel or any tables, compute by a conventional method. Completely solve to fill in Blank…

A: All blanks answers are solved below,

Q: Suppose Lus(R.Y)- 141 - 20.106RS +20Yus Suppose now, the price of a market basket of goods in the US…

A: Real money balance demand is a function of interest rate (R) and income (Y) L(R, Y) is a real money…

Q: How can extensive government intervention influence health economics

A: Health economics is the study of economics that deals with concerns of the supply of health care in…

Q: Consider a self employed worker who owns a firm that produces output q which sells for a price of p…

A: Answer-

Q: If the economy is experiencing recession, the Federal Reserve should O Sell government securities O…

A: Monetary policy is the policy of the central bank through which the central bank aims to control the…

Q: onsider the competitive market for steel. Assume that, regardless of how many firms are in the…

Q: If market share for five cleaning service companies are 8%, 13%, 6%, 25%, and 48%, the four firm…

A: The market share for five cleaning service companies are 8%, 13%, 6%, 25%, and 48%.

Q: 2 The company Shirts Galore has figured its total cost of producing and selling x units of T-shirts…

A: Average cost is per unit cost of production. It is the ratio of total cost and quantity

Q: Describe the rise of the homosexual Liberation Movement of the 1970's

A: 1. This movement argues for gay men, lesbians, bisexuals, and transgender people to have equal…

Q: If foreign inflation is higher than domestic inflation, but the domestic country has a fixed…

A: Balance of trade is the difference between exports and imports. The increase in exports means the…

Q: 12. Consider an economy without technological progress and population growth. The production…

A: Y = K2/3 N1/3 Divide both sides by N to get per capita production function. Y/N = (K2/3 N1/3) / N…

Q: (a) The hypothetical information in the following table shows what the situation will be in if the…

A: Fiscal policy means the expenditure that is incurred in constructing the roads, railways, and…

Q: uppose that X is a random variable having the following p.d.f., Find the *? Median 2 0

A: The given function is: f(x)=12x,0<x<1

Q: Given the following output for the economy of Scoob calculate the nominal GDP in 2020 in $.…

A: Nominal GDP, when goods produced in an economy valued at current prices

Q: (ii) The Phillips curve suggests there is a trade-off between inflation and unemployment, at least…

A: Answer -

Q: How have Graeter’s owners used the four factors of production to build the business over time

A: Economic production is an activity that uses labor, capital, goods, and services as inputs to…

Q: Working in teams and using the resources of your library,investigate NAFTA. Answer the following…

A: The North American Free Trade Agreement (NAFTA) is a pact signed by the US, Canada, and Mexico.

Q: Suppose that the private marginal cost for a product's (rice) consumption is given by the MB curve…

A: As we know market equilibrium is achieved when demand and supply for goods are equal at certain…

Q: 60. Assume a recessionary gap of $300 B exists in the U.S. macroeconomy. Also assume that the MPC…

A: Recessionary gap occurs when actual output is less than potential output.

Q: 16. The variability of real exchange rates has been much greater when a country adopts of fixed…

A: When talking about fixed exchange rate system, it can be said that this system is given by Bretton…

Q: Refer to the following figure when answering the following questions. These are reported in dollars…

A: Exchange rate of UK/EU UK/EU measures the units of UK pound in exchange for 1 euro If there is an…

Q: Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study…

A: We are going to use expectation hypothesis to calculate Present Wroth for each project to answer…

Q: 40 35 20 PRICE (Dollars per shirt) On the following graph, use the orange points (square symbol) to…

A: A firm will continue to produce the output if the price lies above the average variable cost. Any…

Q: MT QUIZ 3 A tariff on foreign cars imported into the Philippines will: 1. Benefit consumers 2.…

A: Trade restrictions are imposed by various countries to protect the domestic industries and to…

Q: Suppose that the economy is characterized by the following behavioral equations: C = 150 + 0.6YD | =…

A: Equilibrium in the economy occurs where aggregate expenditure equals production.

Q: 9. A plant engineer is considering the two types of solar water heating system given in the table…

A: The Internal Rate of Return (IRR) basically refers to the discount rate used to make a project's net…

Q: Compared to a corporation, a partnership is more difficult and expensive to establish.; True or…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: executive summary for why india will be good country to open costco?

A: India is a developing country with diversity in culture present, it is a democratic economy giving…

Q: CH 13 Q3 Homework• Unanswered . Due Today, 11:59 PM Suppose there is a fireworks show being…

A: Reduce the quantity of needless resources utilized to generate a particular product, including human…

Question

In the real business cycle, business cycles are

a. efficient and do not represent lost output

b. occur when markets clear

c. driven by technology shocks

d. all of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Using business cycle explain what phase of economy isreal is currently in and what are the challenges for recovery?
How do proponents of Real Business Cycle Theory explain thebusiness cycle, and why do they object to government intervention tosmooth the business cycle?
Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is high because of the increase in demand? A) Expansion B) Peak C) Trough D) Downturn
What types of shocks are thought to cause most of the fluctuations that are called business cycles (e.g., fluctuations in GDP)? Question 45 options: Government Deficit AD SRAS LRAS
Which phase of the business cycle occurs immediately after a recovery? trough boom peak recession
Fill in the Blanks A. The business cycle is defined as the periodic cycle up and down movement of actual economic production. It is characterized by alternating periods of economic expansion and economic recession. It is often characterize by the tendency of _____________(Real GDP/Potential GDP)to fluctuate about______________(Real GDP/Potential GDP) B. A(n) ____________________(recessionary/expansionary) period of the business cycle is characterized by declining total economic production and rising unemployment
Q1. Fill in the balnks The expansion phase of the business cycle is followed by ______________.
Analyzing Business Cycles: (Please attach a graph showing your work for each question) 1. Suppose that the oil price sharply increased for a while, which increased production costs, causing an adverse supply shock. A. Use the AD-AS model to show the effects on output and the price level in both the short- run and long-run. B. Show the adjustment process of the economy from the short-run to the long-run. C. What is the effect on unemployment in short-run and long-run? D. Can policymakers do something to accommodate this shock? Would the outcome be different in this case?
According to the real business cycle theory, productivity shocks are an important source of business cycles. Using the Cobb–Douglas production function and annual data since 1961, calculate and graph U.S. total factor productivity. Use real GDP for Y, the capital stock from the source listed in Table 3.1 for K, and civilian employment for N. Look for periods marked by sharp changes up or down in productivity. How well do these changes match up with the dates of business cycle peaks and troughs?
Discuss the key problem associated with the Real Business Cycle model. How can this problem be addressed?
Which one of the following statements are incorrect: a)Keynesian economists believe that the business cycle is caused by external factors, such as government interference in the economy b)classical economists believe that the market economies are inherently stable and fluctuations are ascribed to exogenous factors c)Classical economists believe that government should not intervene in the economy to try to smooth out the business cycle d)structuralist economists believe that the market system is neither inherently stable nor systematically unstable
Some degree of unemployment is inevitable in a complex economy. a.True b.False