The difference between nominal GDP and real GDP is that nominal GDP Group of answer choices measures the level of output and real GDP measures the price level. measures the price level and real GDP measures the level of output. measures the level of output in constant prices, while real GDP includes price changes. measures the level of output including price changes, while real GDP holds prices constant.

Q: given Market demand is P(Q)= 5.2-0.1Q, market supply P(Q)= 2+ 0.1Q, price floor of 4.40. What is the…

A: Answer to the question is as follows:

Q: If the government wants to reduce unemployment by influencing the level of activity in the economy,…

A: Unemployment is the state of being able to work, actively looking for job, but unable to find any.…

Q: The table given below reports the value of real GDP and its components consumption (C), investment…

A: Real GDP is the money value of all final goods and services produced in an economy during a specific…

Q: When the price level falls Answer households want to lend more, so the interest rate rises making…

A: When the price level falls, inflation also falls. Since the real rate of interest varies inversely…

Q: Presidential candidate trump promised in mid 2016 that if he became President, he would never have…

A: A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country.…

Q: If the government tries to reduce inflation when the production level in the country is higher than…

A: Fiscal policy is a tool used bu government to bring the economy back to full employment.

Q: Assume the Philippines government adopted fiscal policy measures to reduce the severety of typhoon…

A: Typhoon Haiyan, also known as Super Typhoon Yolanda in the Philippines, was one of the most intense…

Q: Suppose the economy is in a recession, which of the following fiscal policy can the government use…

A: A recession is a macroeconomic word for a large drop in overall economic activity in a certain area.…

Q: Differentiate the macroeconomic effects that explain the causes of the differences of government…

A: Aggregate demand is an indicator of the overall amount of demand generated in an economy for all…

Q: The shortfall between actual real GDP and potential GDP a. decreases as the unemployment rate rises.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The shortfall between actual real GDP and potential GDP a decreases as the unemployment rate rises…

A: The percentage of non-employed workers in labor force is called unemployment rate.

Q: When the price level falls   households want to lend more, so the interest rate rises making the…

A: Demand is done by the consumers at given prices during given duration. Supply is done by the…

Q: For the economy as a whole Income must be more than expenditures. Select one: a. False b. True

A: For an economy, since total injections into the circular flow is equal to total leakages from the…

Q: According to the supply side fiscal policy, increasing tax rates on wages will: Group of answer…

A: When there is increase in wages, there is increase in cost of production.

Q: The US economy continued its robust recovery during the second quarter in 2021, allaying fears the…

A: Aggregate demand and aggregate supply model is given in macro economics for the equilibrium output ,…

Q: In 1968, mandatory government spending was approximately ________ of GDP and in 2108 mandatory…

A: Government spending is in the form of making expenditures on the social welfare of the society which…

Q: Aggregate demand includes   the quantity of goods and services both the government and customers…

A: Aggregate demand is total amount of revenue incurred by the producers by the output produced during…

Q: Definition of expenditure control measure

A: Expenditure can be defined as the payments made for the purchase of any goods or services where…

Q: Aggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services.…

A: The aggregate demand refers to the total demand for all goods and services in an economy. It helps…

Q: Compare and contrast the effect of expansion and recession on selected variables like output and…

A: Let us understand some key terms such as - Business cycle aggregate demand, aggregate supply,…

Q: Which of the following is an appropriate fiscal policy response if the economy is in a state of…

A: The fiscal policy is the policy of the government in the economy to control the spending levels of…

Q: In 2005 national government spending is $4.00 trillion and tax collections are $4.00 trillion. This…

A: Budget refers to the amount of money that the government of a nation has, which it intends to spend…

Q: Aggregate demand is defined as the total spending   a. of all consumers, business firms, government…

A: Aggregate demand is an economic measurement of the overall amount of demand for all finished goods…

Q: The aggregate demand curve shifts to the right when * Taxes are cut Government spending are reduced…

A: The aggregate demand curve shifts to the right when taxes are cut.

Q: The three main objectives of the national economy are price stability, full employment, and economic…

A: Fiscal policy is the term used to describe the way in which the government manages the amount of…

Q: Potential real GDP is defined as: Group of answer choices The quantity of output that the economy…

A: Real GDP is the value of final goods and services produced in the economy within a given period of…

Q: President Biden is proposing an increase in the corporate income tax rate from 21% to 28%. Although…

A: As President Biden and legislative policymakers consider changes to the corporate annual expense…

Q: What are the costs associated with large volatility in GDP?      bouts of low taxes and high…

A: Gross Domestic Product (GDP) refers to the value of all the goods and services produced inside the…

Q: Given a full employment level of GDP of 700 Trillion and a current level of 670 Trillion the…

A: Full employment level refers to a situation as described by the classical economists that all the…

Q: Suppose AE = 0.50 Y + 500. If GDP = $1,000, and There will be excess supply, so inventory will…

A: AE is Aggregate Expenditure.  If AE > GDP, then it means there is excess demand in the economy.…

Q: The aggregate-demand curve shows that a decrease in the price level   a. increases the dollar value…

A: The aggregate demand curve shows the relation between the price level and real output.

Q: If a recession persists due to nominal wage and price stickiness (i.e., slow adjustment of nominal…

A: Fiscal policy is set by the government which shows the changes in government spending or taxes.…

Q: An economy is at full employment. Which of the following can create an inflationary gap. Group of…

A: An inflationary gap exists when the demand for goods and services exceeds production due to factors…

Q: An Inflationary gap is diagnosed when: National Income Equilibrium is less than Full employment.…

A: 1c national income equilibrium is greater then full employment An inflationary gap refers to the…

Q: Which of the following events will lead to a rise in the level of national income in an economy?…

A: Which of the following cases will lead to a rise in the national income in an economy?

Q: Which of these is not true about aggregate demand? a. It includes consumption, investments,…

A: Which of these is not true about aggregate demand? The answer is - b. It is the amount of total…

Q: Which of the following statements are correct? (This is an "all-or-nothing" question: if you do not…

A: GDP is defined as the total value of all final products and services produced in a certain period of…

Q: The government decides that it will cut taxes in an attempt to move the economy out of a severe…

A: Answer TRUE statements

Q: A rising price level should shift the expenditure schedule   a. upward and decrease equilibrium…

A: The phenomenon of the rising price level in the economy is known as inflation. Inflation is an…

Q: National income accounting can best be characterized as: Group of answer choices a microeconomic…

A: The government bookkeeping system that analyses the health of an economy, expected growth, business…

Q: Suppose the following statistics characterize the financial health of the hypothetical economy…

A: Given details of 2017:- GDP is $ 200 billion. National Debt is $ 300 billion. Budget Deficit is $ 8…

Q: When comparing an increase in government spending on goods and services to an increase in private…

A: The gross domestic product measures the market value of all the final goods and services produced in…

Q: An increase in government spending would affect GDP if ?   the long-run aggregate supply is…

A: In an economy, the condition of goods market is explained by the intersection of aggregate demand…

Q: ggregate demand includes Answer the quantity of goods and services both the government and customers…

A: For all finished goods and services, aggregate demand is an economic measure of the total amount of…

Q: Explain how an increase in government expenditure can affect the goods market and money market by…

A: Government spending refers to the expenditures of the government including consumption, investment,…

Q: _________________ Are those expenditure of the government which neither cause any increase in the…

A: According to the given question Expenditures as usually known as the initial act of spending time or…

Q: New findings suggest tax increases reduce real GDP (Romer and Romer, 2008).

A: desclaimer :- as you posted multiple questions we are supposed to solve only the first one.…

Q: The difference between the Aggregate demand and Aggregate output at full employment is known as…

A: According to the given question Full employment is considered as an employment in which basically…