What happens when firms and workers underestimate future prices in the economy.  On what would happen to actual output as opposed to the expected potential output.

Q: What would be one way to make sure the Great Depression or any recession does not happen again?

A: The Great Depression was the world's worst and longest economic downturn in modern history.The Great…

Q: Can you explain how expectations about future prices and incomes will affect consumption?

A: Consumption measures the total consumption spending by the households on different goods and…

Q: A recession is a decline in    the inflation rate that lasts six months or longer the unemployment…

A: The economic activities are the activities which need to be efficient in functioning so that they…

Q: Y = C + I even when the economy is not in equilibrium.  t or f

A: An economy is said to be a closed economy if it does not trade with other countries. In such an…

Q: If most people have rational expectations, how long will recession last ? Explain.

A: The recession is an economic phenomena and phase where the price tends to decline and all the…

Q: six (6) strategies that the Minister of Finance could implement to reduce the consequences of the…

A: Recession is a situation in which all the economic activities are shut down.

Q: What do you expect about the unemployment rate and inflation rate when we have the actual level of…

A: Actual level of output refers to the production of goods and services that are actually produced in…

Q: In your view, is the economy currently operating in the Keynesian, intermediate or neoclassical…

A: From the Keynesian point of view, the aggregate demand is not equal to aggregate supply due to…

Q: Suppose that a decrease in the demand for goods and services pushes the economy into recession. What…

A: The demand is the main factor that determines the developments in the economy. The increased demand…

Q: The introduction of new a technology in an economy implies: what happens when the market is…

A: If a market is pessimistic in nature, it will be more focused to be aware of any changes in the…

Q: Would a cut in stamp duty and other purchase charges on the purchase of existing houses really boost…

A: When the economy is in recession, the cut in the stump duty will help the economy to boost.

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: if actual real GDP is greater than the equilibrium level of real gdp what happens to restore…

A: In economics, the final demand domestically can be defined as the total demand for final services…

Q: When did the British economy first feel the effects of the American-triggered great depression?

A: The great depression is the downturn of the world’s economy in the history of the industrialized…

Q: Who was the President of the United States in 2008?

A: President of the United States in 2008 is George Walker Bush. He is 43rd president of the United…

Q: What caused the Great Recession of 2008 in the United States?

A: The great recession of 2008 in the United States is classified as the worst financial crisis as many…

Q: How severe was the great recession? What pieces of economic data would you cite to support the…

A: The great recession is the global downturn in the economy starting from 2007 to 2009 after the…

Q: The advent of the word processor reduced the time it takes to write and revise documents. This has…

A: Both technological expertise and data relevant to manufacturing practises are used to assemble Scar…

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: if the economy is in a recession, who is at fault?

A: Recession refers to the situation of lower economic activity. During recession, economic activities…

Q: How can expectations about the future change what consumer buy now?

A: In economics, the law of demand establishes the negative correlation between the price and the…

Q: to stimulate the economy. During a recession, the government can engage in

A: A period of temporary economic decline during which trade and all the economic activities are…

Q: What were the causes and consequences of the Great Recession?

A: The great depression as the name itself suggest is one of the greatest event in the history. It…

Q: Potential output is the most that can be produced in an economy at a particular point in time.…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: True or False? Looking along the aggregate demand curve, deflation will lead to a lower level of…

A: Aggregate demand shows inverse relationship between price and real GDP. It means decrease in price…

Q: If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins…

A: Markets usually self adjust in the long run, if the market do not self adjust then any kind of a…

Q: What happens when firms and workers underestimate future prices in the economy? Explain the answer…

A: Expectation about future price and actual price is plays a significant role in the growth of…

Q: Money supply and inappropriate government policies as causes of economic fluctuations

A: Government policies may include increase in government spending which may be sometimes…

Q: What was the lengthiest recession in France?

A: A recession is a period of continuously falling gross domestic product. A recession is detrimental…

Q: Keynesian economists argue that facing an economic recession. and are the surest way to ensure full…

A: The economies around the world tend to depend upon the working of the government, and also the…

Q: Do you think there is a predictable relationship between the business cycle and aggregate investment…

A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…

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: happens when firms and workers underestimate future prices in the economy. what would happen to…

A:

Q: how should policy makers respond to unemployment, inflation and decreased output

A: Unemployment :- When people are ready to work but economy is unable to serve them employment. It…

Q: The Great Depression, according to John Maynard Keynes, was caused by people hoarding cash under…

A: A prolonged, long-term decline in economic activity in one or more economies is referred to as an…

Q: Identify the point or points for which the following is true: The economy cannot reach this point…

A: In Economics, the PPF is a curve that shows the varieties/bundles in the sums that can be delivered…

Q: What may happen if growth in China continues or contracts?

A: Economic growth: It can be characterized as the increment in the swelling changed market estimation…

Q: The business cycle will alternate, if two or more of the components of aggregate demand decrease or…

A: The business cycle alludes to a withdrawal and extension of inflation, GDP, and joblessness. It…