Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time At the points T₁ and T3 of this economy's business cycle, which of the following occurred? ( Real GDP was increasing, and unemployment was falling. Nominal GDP was decreasing, and employment was increasing. The price level was falling, and unemployment was falling. Nominal GDP was falling, but real GDP was increasing. Real GDP was falling, and unemployment was decreasing.

Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time At the points T₁ and T3 of this economy's business cycle, which of the following occurred? ( Real GDP was increasing, and unemployment was falling. Nominal GDP was decreasing, and employment was increasing. The price level was falling, and unemployment was falling. Nominal GDP was falling, but real GDP was increasing. Real GDP was falling, and unemployment was decreasing.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 46CTQ: Hydraulic fracturing (tracking) has the potential to significantly increase the amount of natural...

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22. Which of the following is the technical definition of a recession? A. a fall in GDP for four consecutive quarters B. a rise in unemployment for two consecutive quarters C. a fall in GDP for two consecutive quarters D. a rise in unemployment for four consecutive quarters
Why do you think that GDP does not grow at a steady rate, but rather speeds up and slows down?
Hydraulic fracturing (tracking) has the potential to significantly increase the amount of natural gas produced in the United States. If a large percentage of factories and utility companies use natural gas, what will happen to output, the price level, and employment as tracking becomes more widely used?
10. What has happened to potential GDP over time? What has happened to the potential GDP growth rate over time? How are the answers to these two questions different? Explain. Before Graph
Question 5: Suppose you recently received the GDP numbers for the last quarter. When you calculated the change from the previous quarter, you observed the following: observed the following changes: Y ——> +1.5% C ——> +0.1% I ——> +3% G ——> +0.2% NX ——> unchanged How would you interpret each value in context with the whole of GDP? Is there anything in the data that is predictive (potentially) of future conditions?
How do you convert a series of nominal economic data over time to real terms?
What does GDP not tell us about the economy?
Prepare a chart that compares India, Spain, and South Africa based on the data you find. Describe the key differences between the countries. Rank these as high-, medium-, and low-income countries, explain what is surprising or expected about this data.
13 . Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2016, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) Consumption (C) 12,757.9 Investment (I) 3,035.7 Exports (X) 2,232.4 Imports (M) 2,733.7 Net Exports of Goods and Services Government Purchases (G) 3,276.7 Gross Domestic Product (GDP)
5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and consumedin the economy:Product 2019 Quantity 2019 Price ($) 2020 Quantity 2020 Price ($)Beer 14 18 16 13Chocolate 15 11 17 12Using 2020 as the base year answer the following questions:a. What was the nominal GDP in 2019 and 2020?b. What was the real GDP in 2019 and 2020?c. What was the GDP deflator in 2019 and 2020?d. What was the growth rate of nominal GDP between 2019 and 2020? What was the growth rate of realGDP between 2019 and 2020? What was the growth rate of the GDP deflator between 2019 and 2020?e. Calculate the value of the basket in 2019 and 2020.f. Calculate the CPI for 2019 and 2020.g. Calculate the annual inflation rate over the 2019-2020 period.h. (This part is OPTIONAL in case you want more practice, this type of question is usually on thefinal exam :-) Change your base year from 2020 to 2019. Re-do your answers to parts a, b, and c.
Question 34: thinking locally, we know that today about 24% of economic output in the Buffalo/Niagara Falls metropolitan statistical area is from goods/making activities by over 75% is from services. This is an enormous change from Buffalo‘s days as a manufacturing powerhouse yet the bureau of economic analysis says that the GDP of our metro area has consistently grown, even during the worst of the financial crisis and recession of 2008 to 2010. Which of the following reasons would be relevant to the rise in regional GDP despite manufacturing employment having fallen from 225,000 in 1955 to less than 50,000 in 2020?
5 An economic recession means that _______. a. GDP is critically high b. Employment is increasing c. Output and employment is down d. Output is increasing