When the overall level of prices in the economy is increasing, we say that the economy is experiencing a. deflation. b. stagflation. Oc economic growth. O d. inflation.
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- Which of the following is a consequence of inflation a. An increase in economic growth b. An increase in the purchasing power of money c. A decrease in the unemployment rate d. A decrease in the purchasing power of money Please provide the correct answer ###@@@@####@@#$$$$$$$The stage in which the economy hits a peak is called: Group of answer choices a. expansion. b. contraction. c. stagnation. d. recession. e. depression.Why are they important for policymakers and investors, also in what situations and why do they use them? Gross Domestic Product (GDP): Balance of Payments (BoP): Inflation: Real return & Nominal Return:
- Periods in time that experience increasing price levels are known as periods of a. deflation b. recession c. inflation d. depressionThe focus of the short-run macro model is on the role of a. spending in explaining economic fluctuations b. output in explaining economic fluctuations c. labor in explaining economic fluctuations d. financial markets in explaining economic fluctuationsConsider the following information: State ofEconomy Probability ofState of Economy Rate of Returnif State Occurs Recession .37 −.11 Boom .63 .23 Calculate the expected return.
- Based on the following information, what is the standard deviation of returns? State of Economy Probability of Stateof Economy Rate of Return ifState Occurs Recession .28 − .096 Normal .41 .111 Boom .31 .221When one currency declines against the dollar, it may correspond to lower inflation in the foreign country and as a result, historical operating income and ROI's will be higher. True or False ?need only answer not explain 1. Economic theorists expanded on the Keynesian aggregate supply model in the late 1940s, broadening it into a three-part aggregate supply curve. Which of the following best describes that three-part supply curve? a. A flat initial segment, followed by an upward-sloping middle segment until full-employment GDP is reached, and finally a vertical segment at full-employment GDP b. A flat initial segment, followed by a modestly upward-sloping middle segment until full-employment GDP is reached, and finally a more steeply upward-sloping segment beyond full-employment GDP c. A flat initial segment until full-employment is reached, followed by a vertical segment at full-employment GDP, and finally followed by another flat segment once the full-employment price level is reached d. An upward-sloping initial segment, followed by an upward-sloping segment until full-employment GDP is reached, and finally followed by another flat segment beyond full-employment…
- You are given the following information: State of Economy Probability ofState of Economy Rate of ReturnIf State Occurs Depression .07 −.097 Recession .17 .067 Normal .42 .138 Boom .34 .219 Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Calculate the standard deviation. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %Often, more than one kind of shock hits the economy at once. When this happens, the different shocks could push the price level in different directions in the short run, leaving the final short-term result ambiguous. What is most likely to happen the price level and real GDP (i.e., output) in the following cases? Will they rise, or fall, or can’t you tell with information given? Note that you will not always be able to know the answer for one, but not the other. Motivate your answer. A nation’s scientists invent many new internet search tools, raising current productivity and making investors optimistic about future inventions as well. A government raises taxes, and its economy experiences a year of excellent weather for growing crops. Oil prices skyrocket and the central banks slows the rate of money growth.Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession 0.11 -0.06 Normal 0.45 0.15 Boom 0.44 0.32 Calculate the expected return.