When the economy goes into a recession, realGDP _________ and unemployment _________.a. rises; risesb. rises; fallsc. falls; risesd. falls; falls

Q: Evaluate (explain the positives and negatives of) expansions in the econohmy. What is happening with…

A: Expansions in the economy refer to the rise in the level of economic activity and the availability…

Q: assume that the economy is operating in a recessionary. explain all the steps which the bank of…

A:

Q: Given the following consumption function, C = 400 + 0.75YD, where C= consumption expenditure, YD =…

A: GDP: GDP or gross domestic product is the final value of all the goods and services that are…

Q: he Figure above shows statistics on Real GDP in Qatar ($billions) from 2012 to 2020, in addition to…

A: real domestic product, GDP is the standard proportion of the worth added made through the production…

Q: The table sets out data for an econo Real interest rate (percent per year) Loanal (billie 4. 6. 8.…

A: In economics, crowding out is a phenomenon that occurs when increased government involvement in a…

Q: C+lg+G AE C+lg 150 125 75 $300 $500 $800 Income 13, Which of the following are true statements about…

A: The expenditure-output model, also called as the Keynesian cross, defines the equilibrium level of…

Q: Discuss the 4 components of aggregate demand?

A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…

Q: Jugs of soda 20 2.00 30 1.50 1. The tables above give the purchases of an average consumer in a…

A: When we consider 2015 as a base year. E. Expected real income in 2016 = quantity of 2016*price of…

Q: Investment ($B) Real Domestic Product, GDP (SB) Refer to the diagrams. Other things equal, an…

A: Curve A is negatively sloped, it shows inverse relationship between interest rate and investment.

Q: 3.3 How does classical economic theory respond to the claim that saving contradicts Say's Law, i.e.,…

A: The classical economists believe that economy is in equilibrium and full employment is general…

Q: he following are the components of aggregate demand EXCEPT,   consumption of households. government…

A: Aggregate demand is a negatively sloped curve showing inverse relationship between price and…

Q: 1.11 If desired investment exceeds actual investment, then... a) The economy is in a recession. b)…

A: 1 - Option B When desired investment exceeds actual investment, inventories are less than the…

Q: What is stagflation? How did America’s government respond to stagflation?

A: Stagflation refers to a higher rate of inflation that leads to a higher level of unemployment and a…

Q: Using the AD-AS, AE, MD-MS and PC pdels, show an economy at full nployment, with: natural rate of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The elements of a macro economy are as follows: C = 100 + 0.2(Y – T) | = 500 – 10000r G = 150 T =…

A: At equilibrium we know that aggregate demand and aggregate supply are equal at certain genral price…

Q: uppose that the typical consumer has a salary of $30,000 in 2017. His salary grows by 2% per year.…

A: Answer:    option-D is correct         He can always pay for his own consumption basket without…

Q: What is the value of real GDP if the change in inventory is 50? Planned Government Net Exports…

A: The change in inventories is a very small part as a component of GDP but still, it's important…

Q: a. Explain the meaning of each of these equations. b. What is the marginal propensity to consume in…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: 3. Use the neoclassical theory of investment to analyze using the model and the graphs how these…

A: Note:- Since we can only answer up to three subparts, we'll answer only first three. Please repost…

Q: National Income- Work It Out: Question 2 d. Now suppose national savings decreakes 1O Consider an…

A: A closed economy is that economy in which there is no export or import of goods and services. For a…

Q: Over the business cycle, O A. only real GDP fluctuates around its trend and potential GDP remains…

A: The business cycle model shows how a country's real GDP changes over some time, going through stages…

Q: Consumers of a country spend 83.21% of their disposable income. If the government wants to increase…

A: The tax multiplier would result in the change in the tax which would create a multiplier effect…

Q: nce again, consider a closed economy th the following information: Economic investment = $4500…

A: GDP is the market value of goods and services produced within an economy in a given period of time.

Q: Suppose that an economy produces only two final goods Orange Mocha Frappuccino (F) and Iced 1)…

A: Hi there! Thankyou for submitting the question. Since we only answer up to three sub-parts, we will…

Q: a. If money supply is increased by 20, what will be the new interest rate? Round your answers to one…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: If the economy goes into a recessionary gap, a) What will be the effect on the labor market? b) What…

A: Introduction Recessionary gap is the difference between real GDP and potential GDP. Here actual…

Q: he Congressional Budget Office admits that its forecasts of next year’s GDP are off by an average of…

A:

Q: If you were the CEO of a company, name two (2) economic variables you will use to predict how the…

A: Economic forecasting is the process of attempting to predict the future condition of the economy…

Q: Given the following informations Consumption(C)= 800+0.9Y Investment( I)=8000-800r Money…

A: LM represents Liquidity-Money, it shows the money market equilibrium of an economy. The LM curve…

Q: B) What causes business cycles ? Externa factors only or internal factors only or aggregate external…

A: Business cycle: The business cycle, otherwise called the monetary cycle or exchange cycle, are the…

Q: Complete the accompanying table. (a) What is the break-even level of income? How is it possible for…

A: The solution is as follows:

Q: Year Actual Output Yt Potential Output Yt Yt - Yt Short-run Output Y 2018 2019 2020 20 20.25 22.50…

A: Long-run equilibrium occurs when real GDP is equal to potential GDP.

Q: 1. the aggregate supply curve shows the negative relationship between general price and real GDP.…

A: Real GDP is a proportion of a nation's GDP that has been adapted to expansion. Balance this with…

Q: 26. if rr = 2000.c= 2000, ER = 6000, DD = use M1, the Md in Keynes and value of money in pigou are…

A: Keynes Model is a model in Macroeconomics that discusses about total spending in the economy and its…

Q: An economy has government purchases of 2000 (G=2,000). Desired national saving and desired…

A:

Q: a) Explain the difference between real and pominaLGDP

A: As per bartleby guidelines, in case of multiple questions, First question is answered. Please post…

Q: Use the following data table to anwer the questions below, dollar amounts are in billions.…

A: Economic equilibrium is the state in which the market forces are balanced, where current prices…

Q: Suppose that Dell Corporation has 20,000 computersin its warehouses on December 31, 2019, ready tobe…

A: Inventory investment is defined as a change in the stock of the goods because some goods are…

Q: a. Looking at business fixed investment, explain why investment is negatively related to the…

A: Fixed Investment is the purchase of fixed factors, like machinery, building, plant etc which helps…

Q: (b) Assume that the household in an economy spend 75% of their extra income. Calculate the change of…

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

Q: The graph below presents the Short Run Aggregate Supply Curve and the Aggregate Demand Curve for…

A: The intersecting point of aggregate supply curve and aggregate demand curve is the market…

Q: a) Discuss the determinants of aggregate consumption and aggregate investment. Base on historical…

A: A. There are several determinants of aggregate consumption and investment, including income levels,…

Q: efer to Figure 17. If the economy starts at A, a lower real interest te moves the =conomy from A to:…

A: Option B is correct

Q: If the consumption is 410 and the investment are 530 find the aggregate demand in two sector economy

A: Two sector economy consists of only two sectors that is household and firms. Therefore, Aggregate…

Q: The government increase its spending by $100. 1. Explain the effect of this change in government…

A: In an economy, any change in the government spending will lead to influence aggregate demand because…

Q: macroeconomics- keynesian math and graphs

A: (a)   The Keynesian cross is also known as the simple Keynesian model. The model emphasis that a…

Q: 31. Which of the followings will not affect aggregate demand? PL LRAS AD 1 Real GDP (Y) Technology…

A: An economic indicator of the overall amount of demand generated in an economy for all finished goods…

Q: Suppose the current price level is 105, and the current level of RGDP is $17.2 trillion. Illustrate…

A: Aggregate demand (AD) is the total demand for goods and services, which comprises consumption…