Natural rate of output is equal to the amount of real GDP when the economy is at the: a) Natural rate of net exports b) Natural rate of investments c) Natural rate of unemployment d) None of the above
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Natural rate of output is equal to the amount of real
a) Natural rate of net exports
b) Natural rate of investments
c) Natural rate of
d) None of the above
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- Investment is driven by all of the following except ____________.The Bureau of economic analysis announced today that gross domestic product, the widest measure economic activity, grew in a meager 0.9% annualized rate in the third quarter compared to the first six months of 2018 the US economy in the first 3 quarters of 2019 grew just 1.6%, a pronounced slow down relative to the 3.9% growth in the second half of 2018. Some of this slowdown can be explained by a negative contribution from inventory investment, which contracted 0.9% in the third quarter. There’s plenty to worry about in this report, as it showed us Retail sales Fell for the first time in seven months in September, although overall consumer spending which comprises about 66% of the US GDP activity was up 0 .4%. Capacity utilization also decreased 0.4% in the third quarter to 74.5%.1. Write a phrase from the article that speaks to change in household consumption in the third quarter in 2019. 2. From the information in this article, did household consumption increase or decrease in the…Potential GDP refers to a. the level of output that an economy can produce when all resources (land, labor, capital, and entrepreneurial ability) are fully employed. b. the level of output that an economy can produce when all resources (land, labor, capital, and entrepreneurial ability) are not fully employed. c. an abstract conception developed by economists. d. an unreal expectation of the government.
- Potential GDP is equal to total production when all employment in the economy is being used to the maximum and there is no unemployment rate False TrueGovernment expenditure includes all public consumption, investment, and transfer payment. Which of the following is categorized under current expenditure? i. Purchases of hospital equipment. ii. Salary payment for teachers of private schools. iii. Grant for research and development (R&D) activities. iv. Social security payments for the unemployed. A) i only B) i and ii C) i, ii and iii D) i, ii, iii and ivMacropoland, a country that is a natural gas and oil importer, has a natural rate of unemployment (at the full employment level of GDP) that is about 4.5%, and the long run average rate of inflation over time has been about 2%. However, during the period 1973-1974, the country experienced an inflation rate of about 15% while simultaneously experiencing unemployment of nearly 13%.At the present time, Macropoland is experiencing very sluggish consumption and investment (a result of a fall in the housing market), and unemployment has again edged up to around 9%. Inflation is very low at 0.4%.Macropoland has just hired you as their economic advisor. You have a big job ahead of you. Using your knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical…
- The overall dize of the economy is determined by a- potential GDP b-increasing human capita c-increasing physical capital d- using previous experience and gradually updating expectationWhich of the following are true of an economy operating with a negative GDP gap? Check all that apply. a)A worker with a college degree is more likely to be unemployed than a worker without one. b)The suicide rate, crime, and political unrest may be higher than in an economy with a similar potential GDP and a lower unemployment rate. c)Actual real GDP is less than potential real GDP. d)A teenage worker is more likely to be unemployed than an older worker.The real business cycle model implies that government should vary its expenditures in respons to changes in total factor productivity True False
- The country of Calico has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms. a. Using 2000 as the base year, what is the growth rate of real GDP from 2000 to 2010? b. Based on the GDP deflator, what is the inflation rate from 2000 to 2010?Which of the following will NOT lead to an increase in real GDP? A. On average, people in a country decide to increase the number of hours they work by 5%. B. Spending on homeland security increases in response to a terrorist attack. C. The price level and nominal GDP increase by 10%. D. Due to lower interest rates by the Fed investors increase their investmentsInflationary GDP is the amount by which equilibrium real GDP falls short of the full employment level of GDP. True or False
