What is short-term momentum? What are long-term reversals?

Q: State both definitions of a recession, the old/traditional definition and the new/modern definition.…

A: Recession is a macroeconomic concept. It is a part of business cycle and it comes after the Boom or…

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: Economic variables are sometimes divided into “leading indicators” and “lagging indicators.” Leading…

A: Recession  A recession in the economy refers to the situation in which the aggregate demand in the…

Q: what is fluctuation? What are the changes generated by fluctuation? How does fluctuation evolve?

A: Economic fluctuations are simply fluctuations in a country's national income level which represents…

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 what tendency does consumption smoothing refer to and why is it assumed in an intertemporal…

A: Consumption smoothing is the process of maximizing our level of living by maintaining a healthy…

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: 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: Please use classical model AD-AS analysis (i.e. state AD, SRAS or LRAS shift rightward or leftward)…

A: By using the classical model-

Q: Do you remember the Harrod-Domar model? Derive it and apply it to a numerical case where d=4%,…

A: d = 4% s = 35% gy = 8% S is expected to rise by 45% next year

Q: Why, in general, do shocks force people to make changes? Give at least two examples from your own…

A: Shock: It refers to the change in the variable or relationship that shows the considerable effect on…

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: Which of the following is not one of the possible general sources of shocks that can cause business…

A: A Business Cycle is defined as a cycle of fluctuations in the Gross Domestic Product (GDP) along its…

Q: In business forecasting using multiplicative decomposition which data component do you use to…

A: Business forecasting is the practice of making educated assumptions about particular business…

Q: What happens in the circular flow model during a recession.

A: The circular flow model represent show money flows from one economics sector to another and how it…

Q: Explain why the circular flow model is circular

A: The circular flow of money explains how money and goods are circulated between the household sector…

Q: How many recessions has France undergone over the years plotted in the chart? What are the two…

A: The first recession shown in the diagram was during the 1975 oil-crisis. This had an adverse and…

Q: Explain in detail how real business cycle theory is different from the rational expectaion theories…

A: Business cycle refers to the stages occurred when the product enters the market, how the product…

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: Assuming the economy is currently in an expansion, which phase will follow? Then place the remaining…

A: When the economy is currently in expansion , it will follow the peak phase of the business cycle.…

Q: consider the generalized Romer model where the fishing-out effect and the decreasing returns to…

A: The existence of an upper limit for the fishing out effect in steady-state is unknown. This is…

Q: How is long-term growth illustrated in an AD/AS model?

A: To explain the long term growth in an AD/AS model, the graph below represents the growth in the long…

Q: What actions might a business owner take during times of economic contraction? In other words, how…

A: Business cycles represent those periods of cyclical fluctuations that occur in an economy in terms…

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: Which of the following macroeconomic variables is procyclical and leads the business cycle?

A: Economic indicators are generally three types:- 1 - Procyclical variable A variable can be said as…

Q: Business cycles are pervasive in all macroeconomic variables. Does the relative durations of…

A: Business cycles are omnipresent in all macroeconomic variables; this ensures that the presence of a…

Q: What is one way society can financially incentivize innovation?. What school of thought believes…

A: The society or the government provides several ways in which they incentive the innovation in an…

Q: Who is John Maynard Keynes? What time period did he write?  What did he believe about the market’s…

A: John Maynard Keynes was an English Economist who presented his ideas in the field of macroeconomics…

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: Question 6 Which of the following are true about TSD vs. Winters. (Select all that apply.) O TSD…

A: TSD is an Industrial Solar Digital Thermometers. This versatile thermometer provides a solar powered…

Q: If an economy starts in a long run equilibrium and then there is a large decrease in the stock…

A: Long-run equilibrium refers to an equilibrium where the aggregate demand curve and aggregate supply…