The long run in macroeconomics is the period ef time in which prices do not change or do not change very much. True False

Q: real business cycle models (RBC) are preferable to traditional Keynesian macroeconomic models.

A: real business cycle models (RBC) are preferable to traditional Keynesian macroeconomic models. -…

Q: What is the relevance of a particular business firm to the performance of macroeconomy?

A: The economics refer to the study of human behavior with respect to the limited availability…

Q: Please explain the theoretical value of the parameter Alpha in other words what does the value of…

A: Potential returns of an investment is calculated using Capital Assets Pricing Model (CAPM). The…

Q: Give an example of an event which causes the economy to go from point D to point B in the long run.

A: The above graph shows the short run and long run equilibrium of an economy.

Q: Assume that output began at its natural level. By using AD-AS (upward sloping) and Phillips curves,…

A: The overall demand for final product ANd services in an economy at a given time is thought as…

Q: Which of the following scenarios indicates that an economy which might be in a recession? Select the…

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

Q: Starting from the natural rate of output and the natural rate of unemployment, show the short run…

A: With the decrease government spending, the IS Curve shifts to the left, from IS0 to IS1

Q: Why is Okun's law a useful rule of thumb to keep in mind when analyzing our short-run model?

A: Okun’s Law: Okun’s law explains that there is a negative relationship between gross domestic product…

Q: Explain thé importáñčé óf macroeconomics in an economy

A: According to the given question It is the macroeconomic which is not concerned with a single…

Q: Price Level Ps P₂ P₁ LRAS Y₂ AD₂ SRAS AD₁ Quantity of Output A shift from AD2 to AD1, would have…

A: Aggregate demand affects the growth in short run only over the long run, it does not affect the…

Q: Which of te following does not contribute to the real business cycle explanation of business cycle?…

A: Real business cycle theory doesn't incorporate aggregate supply.

Q: c. Now that the macroeconomy is in a disequilbrium, what happens in the labor market? O A.…

A: If there's a rise in aggregate demand, like what's experienced during inflation, there'll be an…

Q: Give an example of a concept  you think may be associated with strong macroeconomic performance.…

A: Discalmlier: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Give an example of a concept learned in this course that you think may be associated with weak…

A: Macroeconomics is the part of financial matters that arrangements with the construction,…

Q: According to Prof Martin "An increase in government spending drives up or increases the private…

A: Crowding out effect appears when the government adopts the policy of expansionary fiscal policy and…

Q: Describe the full employment macroeconomic equilibrium in the As-AD model. what would happen on the…

A: We will answer the first three subparts only. Please resubmit the other parts separately in case you…

Q: During recessionsa. workers are laid off.b. factories are idle.c. firms may find they are unable to…

A: During recessions workers are laid off, factories are idle, firms may find they are unable to sell…

Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…

Q: Following a demand-side recession, what happens to full employment GDP (C+I+G) after a few…

A: When talking about demand-side recession, it is the situation when people reduces their demand for…

Q: Regardless of many assumptions, an equilibrium business-cycle model can go a long way in matching…

A: Business-cycle: It refers to the conditions under which the growth and decline have been taken into…

Q: What is the condition of the U.S. economy now (phase of business cycle, GDP growth rate,…

A: According to several sources, the US GDP growth rate was on average -4.27% during 2020, compared to…

Q: What is Break? how breaks play an important role in macroeconomic data?

A: Answer - Breaks - Breaks are the sudden change in property time series data .These changes can be…

Q: What has happened to the macroeconomic over the past two years? What is happening with the…

A: Macroeconomics is the study of a country's or region's overall economic behaviour.. It is concerned…

Q: In the dynamic model of AD-AS in the diagram to the right, if the economy is at point A in year 1…

A: In AD/ AS graph, a  rightward shift or increase in Aggregate demand will make output to rise along…

Q: The long run in macroeconomics is the period of time in which prices do not change or do not change…

A: The end of the day may be a period of your time during which all factors of production and costs are…

Q: Explain the macroeconomics in the context of following; a. Aggregate supply and demand b. Shifts in…

A: Macroeconomics is studied to learn about to broader components of an economy, such as AD-AS,…

Q: Which of the following is Aggregate Demand (AD) directly related to in an AS/AD model?  a)…

A: In the AS-AD model, aggregate demand describes the components of expenditure method of computing GDP…

Q: What must be true of the model parameters and variables of the AD-AS curves in the long-run…

A:

Q: An economist for the ruritanian ministry of economy recommends a tax to households of 20 billion.…

A: The aggregate demand(AD)-aggregate supply model is used to determine the equilibrium output level…

Q: What is the reason AD is downward sloping ? what causes AD to shift? Define OKun's law

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

Q: Brent, the international oil marker, hit US$130 a barrel on 8th March 2022. The oil price is close…

A: Aggregate supply, is the total supply of labor and products created inside an economy at a given by…

Q: Using a separate set of AS-AD diagrams for each of the following scenarios, explain what is likely…

A: The AD-AS (aggregate demand-aggregate supply) model depicts however value is set and the way worth…

Q: ive an example of a concept  you think may be associated with weak macroeconomic performance.…

A: Economic problems are the ones that demotivate the economy from growing and prospering.

Q: Typically, when will the National Bureau of Economic Research​ (NBER) announce that the economy is…

A: Recession is a situation in the economy when there is a general decline in economic activity. For…

Q: The Classical view of the macroeconomy was that economic downturns or recessions or depressions were…

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

Q: Draw and explain three stages of neoclassical production function

A: In neoclassical production function there are two factors of production capital and labour. Y=F(K,L)

Q: Are there any “good” supply shocks? Explain

A: A supply shock is an occurrence where the supply of a product or service, or goods and services in…

Q: Which of the following is not true about real business cycle macroeconomics: (a) is based on…

A: According to the real business cycle in macroeconomics, it shows that the economic fluctuations are…

Q: Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at…

A: a time of transitory economic contraction marked by a decrease in commerce and industrial activity,…

Q: How is the natural rate of unemployment illustrated in an AD/AS model?

A: The natural rate of unemployment depicts the lowest rate of unemployment whereby there is either…

Q: What is the importance of the time horizon in macroeconomics? How do short and long-run differ?

A: A time horizon otherwise called an arranging skyline, is a decent mark of time in the future so, all…

Q: Use a Keynesian model to calculate the answer. Full employment = 80 output million

A: Marginal propensity to consume (MPC) represents the change in consumption due to change in income…

Q: According to Philips curve, a. growth in inflation is observed together with a decrease in…

A: Answer is given below

Q: Describe the full employment macroeconomic equilibrium in the ASAD models?

A: The aggregate demand–aggregate supply model, sometimes known as the AD-AS model, is a macroeconomic…

Q: 6. Supply creates demand a. Say's law b. Keynesian law

A: Say's law and Keynesian law are two different laws of economy. Say's law related to classical theory…