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Is re-shoring the best approach to deal with shocks like Covid-19 or similar events in the United States? and why?
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- Are TFP shocks a reasonable explanation for the business cycles Are TFP shocks a reasonable explanation for the business cycles we see in modern economies? Why and why not? Are TFP shocks a reasonable explanation for the business cyclesConcept of Hysteresis suggests that the economic shocks affect the economy only for a short time period. True or false, justify your response in either case:Assess the view that when an economy experiences a negative economic shock there willalways be a sustained increase in unemployment.
- Why, in general, do shocks force people to make changes? Give at least two examples from your own experience.If the economy begins at an equilibrium at potential output, a negative aggregate demand shock has which of the following effects in the short-ru? a. output and prices increase and unemployment falls below the natural rate b. output and prices increase and unemployment rises above the natural rate c. output and prices decrease and unemployment rises above the natural rate d. output and prices decrease and unemployment falls below the natural rateSort the following shocks into aggregate supply or aggregate demand shocks. Remember that "shocks” include both good and bad events. No need to motivate your answer. Fall in the price of oil A rise in consumer optimism A hurricane that destroys factories Good weather that creates a bumper crop A rise in sales taxes Foreigners buy fewer goods Fear New inventions occur at a faster pace A faster money growth rate
- What is positive supply shock? What are the few examples to positive supply shocks? What is the impact of positive supply shock on the aggregate demand?If a natural disaster occurs in the US, this is an example of a A) stone cold shock B) negative aggregate demand shock C) negative real shock D) positive real shock E) None of the answers are correct.What is a V shaped shock and recovery of an economy. What is a U shaped shock and recovery of an economy? What is an L shaped shock and “recovery” of an economy? What is a K shape shock and ‘recovery’ of an economy? Provide examples for each. What kind of shock will the implications of the Corona Virus cause to the economy?
- Explain the role of expectations in the macroeconomy.Which of the following would be positive aggregate demand shock? A) a slower money growth B) increased import growth C) faster growth of government spending D) decreased investment spending E) None of the above.Could you please also sort the following shocks into positive or negative aggregate supply or aggregate demand shocks? Fear New inventions occur at a faster pace A faster money growth rate