magine an economy in which nominal GDP grew between 2018 and 2019 and real GDP fell during that same time period. Which of the following answers might explain this?

Q: #22 If countries that imported goods and services from the United States went into recession, we…

A: Recession is a situation of economic downfall when there is higher supply of goods and services in…

Q: Which of the following shocks has the biggest potential to increase a country's potential GDP? O A…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: n 1974, we had real GDP of 5,396.0, and in 1975 we had real GDP of 5,385.4. Further, in 1974, the…

A: Equilibrium real GDP and equilibrium price level occurs at the intersection point of aggregate…

Q: Real GDP Price Level Demanded (Price Index) Supplied Real GDP $ 100 300 400 $ 200 250 400 $ 300 200…

A: The law of demand refers to the inverse or negative relationship between the quantity demanded of a…

Q: Based on the articles “Unemployment Claims Remain Historically High” and “US Consumer Spending Rose…

A: Unemployment refers to a situation where a person is willing to work but he/she doesn't get…

Q: During the  late  1990s,  Japan  experienced  reductions  in the  GDP  deflator.  Given  this…

A: Here, it is given that the GDP deflator decreased in Japan during the late 1990s.

Q: AS2 AS, AS3 e2 ) e, AD Real Domestic Output Refer to the graph. If aggregate supply shifts from AS1…

A: The macroeconomic equilbrium in an economy is determined by the aggregate demand and aggregate…

Q: Price level (GDP price index, 2005 = 100) 140 + 130 120+ 110 100 + AD ADo 90 AD2 11.5 12.0 12.5 13.0…

A: The movement along the AD curve would be due to : Change in the price level Change in real GDP So…

Q: Which of the following variables falls when the national economy enters a recession? (choose all…

A: Recession: In the business cycle, recessions are a normal, albeit unpleasant, part. During a…

Q: Changes in the price level affect which components of aggregate demand?   a only consumption and…

A: There are many components of aggregate demand as follow Y = C + I + (G - T) + (X - M) Here,  Y =…

Q: The economy is at a point where policy makers in the country are concerned about unemployment. One…

A: Unemployment arises when employees who wish to work are unable to do so, resulting in a reduction in…

Q: Assume that nominal wages increase by 3% in the economy.  As a result, we observe   Question 32…

A: Nominal wages are money wages paid to workers or salaries paid to workers, which would result in the…

Q: (Enter response here.) 6. A number of macroeconomic variables decline during recessions. One of…

A: a) Besides real GDP, investment spending is another variable that declines during the recession as…

Q: Analyse the impact of these events on the price level and total output of an economy in the short…

A: a) When the government increases the expenditure on health and education, the demand would increase…

Q: What is the new GDP in the short-run as a result of this shift? What is the new price level in the…

A: As per the inquiry, the given graph speaks to the since quite a while long run and short-run market…

Q: A4 Imagine that in the year 2035, Japan’s economy shrinks significantly, causing a decrease in…

A: Quantity of enterprise would depend on certain factors. It would for example increase if there are…

Q: The quantity of aggregate goods and services demanded rises when the   a. price level falls,…

A: Aggregate demand is the total demand for goods and services made by all economic agents in the…

Q: A number of macroeconomic variables decline during recessions. One of these variables is the GDP.…

A: Recession is the state of economy in which the performance of the economic activities are declining…

Q: Question 3. Assume the following model of the economy, with the price level fixed at 1: C= 0.8(Y –…

A: GIVEN   C = 0.8(Y – T)             T = 1,000I = 800 – 20r               G = 1,000Y = C + I + G…

Q: Over the business cycle, O A. only real GDP fluctuates around its trend and potential GDP remains…

A: The business cycle model shows how a country's real GDP changes over some time, going through stages…

Q: Stagflation is the combination of rising price level and rising real GDP lower price levels and…

A: Stagflation is an economic event which derived it's term from a combination of stagnation and…

Q: Suppose the economy experiences a "supply shock" due to a fall in oil prices. As a result, the…

A: Gross Domestic Product (GDP) refers to the total or final value of all the goods and services that…

Q: An increase in aggregate demand when the economy is operating at near full capacity is likely to…

A: In an economy, full-employment level is one when an economy is operated at its potential using the…

Q: Suppose the economy of Hawkland is initially at full employment. Currently real GDP is $20 trillion,…

A: The graph below shows the real GDP on x-axis and price level on y-axis. The aggregate supply curve…

Q: A number of macroeconomic variables decline during recessions. One of these variables is the GDP.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Real aggregate expenditure, AE (trillions of dollars) Y AE AE, AE, 45 Real GDP, Y (trillions of…

A: When aggregate expenditure is equal to the real GDP, economy will be in equilibrium.

Q: Instructions: Enter your answers as a whole number. a. What are the equilibrium price level and the…

A:

Q: Which of the following would shift aggregate demand to the right? 1) The value of the dollar…

A: Aggregate demand refers to the total demand for finished goods and services produced in the economy…

Q: Question 15 The business cycle measures O a) short-run fluctuations in economic activity. O b)…

A: Correct option is a) "short- run fluctuations in economic activity."

Q: An increase in aggregate demand when the economy is operating at full capacity is likely to result…

A: The total demand for the goods and services in an economy at a particular time is called the…

Q: Aggregate demand is defined as O the relationship between the total quantity of goods and services…

A: The entire amount of money spent on those products and services at a certain price level and moment…

Q: Discuss how the AD/AS model can explain economic growth, recessions, as well as changes in…

A: The Aggregate Demand and Aggregate Supply(AD/AS) curves helps one to find the relationship between…

Q: he U.S. economy is initially in short-run macro-equilibrium.  Assume that China falls into a deep…

A: A recession is a macroeconomic concept that denotes a substantial drop in overall economic activity…

Q: Question 11 Use the AS/AD framework to show what happens to GDP and the price level in the short and…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain how a recession can affect the aggregate demand of an economy. Your explanation should…

A: Each financial specialist ought to be acquainted with the fundamental laws administering the organic…

Q: Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that…

A:

Q: Real GDP Real GDP Demanded, Price Level Supplied, Billions (Price Index) Billions $100 300 $450 200…

A: Price Level  Quantity Demanded ($) Quantity Supplied ($) 300 100 450 250 200 400 200 300 300…

Q: If nominal GDP rises: real GDP must fall. real GDP must also rise. real GDP may either rise or fall.…

A: Nominal GDP is the value of the basket of all goods and services at the current year prices. So,…

Q: Drive the equation of Aggregate demand curve for two sector economy. Also drive the equation for…

A: Aggregate demand shows the total amount of goods and services demanded in the economy.