Suppose most business executives expect a slowdown in the economy (slower sales growth for their firm).  How might that affect the economy?

Q: What is macro economy?

A: In economics, choices arise because of the presence of scarcity. There are limited resources in an…

Q: What is the importance of the J-curve in macroeconomics?

A: Export is the selling of goods outside the home country. The goods are produced in the home country…

Q: the short-run effect of the shift in the reaction function on GDP?

A: The reaction-function of the central-bank is the function showing how the central-bank changes the…

Q: If GDP is currently running faster than potential GDP, can we say, based on that observation alone,…

A: Rapidly rising GDP above the potential level may or may not be harmful for the economy, it actually…

Q: Evaluate the following statement: Even if the prices of a large number of goods and services in the…

A: It is absolutely true to say that, "Even if the prices of a large number of goods and services in…

Q: Why is a slow growing economy a problem during a recession?

A: To find : Why is slow economy a problem during recession.

Q: What will be the ultimate effect on GDP and P?

A: The market is in equilibrium at the point where the demand is equal to supply. GDP refers to the…

Q: Describe two ways economists try to forecast developments in the economy

A: The economies around the world tend to work with the motive of enhancing their economic, and…

Q: What are inflationary and recessionary gaps in the economy? How do they impact the economy?

A: Deflation is defined as a drop in the overall price level of all products and services in a specific…

Q: Why/how has Covid-19 led to a global economic recession?

A: Recession occurs when the aggregate demand is not enough to use the full capacities of economy.  The…

Q: In an economy, people like to eat and spend for restaurant foods. This change in behavior causes…

A: We are going to discuss the effect of change in behavior of agents in the economy on the overall GDP…

Q: What components of GDP tend to decline significantly during recessions (particularly during the 2008…

A: Recession is a temporary period of economic decline which leads to a fall in GDP for two successive…

Q: What happens when firms and workers underestimate future prices in the economy.  On what would…

A: The expectations and the actual level of inflation in the economy play a very crucial role in the…

Q: What were John Maynard Keynes views of the causes of recessions and solutions to fixing them?

A: A recession is a situation of economic contraction, where businesses experience low demand and there…

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: 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: A decline in the interest rate is unlikely to have no effect on GDP? Agree or disagree? Why?

A: Below is the component of GDP: *Consumption *Investment *Government Expenditure *Net-Export

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: Briefly explain whether production of each of the following goods is likely to fluctuate more or…

A: The measure that depicts the final production of goods and services in an economy being produced…

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: economy, firms tend to hold 30% of output as inventory. i. If in a period 1, total output is 200…

A: Inventory is the unrefined substances used to create products as well as the merchandise that are…

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: Which of the following will probably rise when the economy is in a recession?

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: What is gdp in Econ terms?

A: The GDP is the gross domestic product or the total income of the country from the domestic goods and…

Q: Why do economists and managers pay attention to the measurements of macroeconomic activity?

A: Measurements of macroeconomic activities are done by monitoring the inflation rates, gross domestic…

Q: what might explain the differences seen in the role of consumption and investment during the…

A: Role of Consumption and investment is very important whether it is recovery or recessionary phase of…

Q: Why did Keynes believe that the proper response to a period of recession was for the government to…

A: Keynes' macroeconomic view is referred to as the most practical view in economics as it deals with…

Q: What is the impact of recession in our economy?

A: The economies around the globe have a limit to the amount of resources available with them. The…

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: For each of the following events, what is the likely effect on GDP?

A: Gross Domestic Product is the aggregate money value of all final goods and services produced in a…

Q: What is the central economic idea humorously illustrated in Art Buchwald’s piece, “Squaring the…

A: Recession: It is a macroeconomic term that alludes to a huge decrease by large monetary movement in…

Q: Which of the following is a sign of a strong economy A. An increase in GDP B. A shrinking economy…

A: Economy refers to managing available resources carefully.

Q: f inventories are increasing, what part of the business cycle could we be entering? Group of answer…

A: A business cycle is a cycle of fluctuations in the GDP around its long-term growth rate. It is…

Q: What is macro_economics

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: In the long run, what happens to consumption in the economy when people are saving less?

A: Saving is vital for economic growth. As saving acts as supply of loanable funds. The funds that are…

Q: If an economy is not expanding and the economy is therefore suffering from high unemployment, then…

A: When an economy is not expanding and is suffering from high unemployment, the economy is in threat…

Q: The government of Prime Minister Shinzo Abe said it would offer some $15 billion in financing for…

A: 1. Japan being the  third largest GDP earner,plan to boost economy amidst corona virus pandemic by…

Q: If the United States introduces universal child care, what will likely happen to GDP? Explain fully…

A: Universal child care is the provision of child care facilities like health care, education,…