Which of the factors below will NOT be a feature of economic recessions? Higher unemployment Low interest rates Low government spending Budget deficits
Q: Which of the below did NOT happen during the Great Recession of Dec. 2007 - June 2009? Group of…
A: During financial crisis, banks had stopped lending and credit market freezed because of…
Q: QUESTION 10 A recession is a period during which aggregate output increases. True False
A: A recession refers to a period in which there is a consistent reduction in the aggregate output (Y)…
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: The lowest part of a recession is referred to as its _________. a. Depression b. Boom c. Trough d.…
A: The state of economy when there is significant decline in the activities of the nation is referred…
Q: Output Unemployment A Y>Y* Uu* Y=Y* u=u*
A: u=unemployment rate u*=natural rate of unemployment Y=output Y*=full employment output
Q: Why is a slow growing economy a problem during a recession?
A: To find : Why is slow economy a problem during recession.
Q: Which of the following scenarios indicates that an economy which might be in a recession? Select the…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: An economic recession means that _______. a. GDP is critically high b. Output and employment is down…
A: An Economic Recession is defined as where there is a decline in the performance of a country and…
Q: All of the following are causes of Great Recession except Group of answer choices Increased…
A: The Great Recession was a period of substantial general deterioration, i.e., a recession,…
Q: compare/contrast the response of countries to the Great Depression to the response of countries at…
A: The outbreak in 1929 caused major economic outbreak in the world economy. Great depression affected…
Q: The decline in real GDP from $1,000 billion to $500 billion considered a recession
A: Recession is the macroeconomic term which represents the contraction in the business cycle of the…
Q: According to the textbook definition, a recession occurs if ___ GDP decreases for ____ Question…
A: If nominal GDP decreases for consecutive 2 quarters,then recession occurs.
Q: On a business cycle diagram, the trough represents: a. An expansionary phase b. A contractionary…
A: Business cycle: A business cycle is a graphical presentation of the coordinated cyclical upswings…
Q: Define the term economic recession?
A: Economic recession is common in capitalist economy. It is an important part of ‘Economic trade…
Q: The phase of the business cycle in which real GDP declines is called: a recovery. the trough. a…
A: Business cycle: Also known as economic cycle or trade cycle, business cycle are the fluctuation in…
Q: Compare and contrast the effect of expansion and recession on selected variables like output and…
A: Let us understand some key terms such as - Business cycle aggregate demand, aggregate supply,…
Q: Which of the following statements about business cycles is true? The results of this activity will…
A: The measure that depicts cyclical upswings and downswings in the level of economic activity with…
Q: Suppose from one year to the next, the GDP deflator increased by 3% and nominal GDP increased by 1%.…
A: GDP Deflator helps to change in prices of all goods produced; only includes goods produced…
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: When the economy has a positive GDP gap, A Potential GDP exceeds actual GDP B Potential GDP…
A: The total monetary or market value of all finished goods and services produced within a country's…
Q: When actual GDP does not rise as fast as potential GDP, the economy most likely will experience…
A: The answer to the question is as follows :
Q: Officially recession is defined as: decrease in the real GDP for two consecutive quarters. decrease…
A:
Q: Which of the following economic conditions is most difficult to identify: recovery expansion…
A: Economic condition: It refers to the financial circumstances that allude to the condition of an…
Q: Economists refer to fluctuations in output as the "business cycle" because movements in output are…
A: # In an economy, GDP measures the periodic fall and rise in the nation's economy and this is known…
Q: Which of the following will probably rise when the economy is in a recession?
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
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: Which of the following causes of an economic expansion is consistent with real business cycle…
A: An rise in the degree of economic activity, as well as the commodities and services offered, is…
Q: The following graph approximates business cycles in the United States from the first quarter of 1955…
A: a) Real GDP trends upward over time but experience ups and downs in the short run. A period of…
Q: Question 25 In order list the following steps in the prosperity cycle in the order in which they…
A: 1. Employment Increases. This means more people are getting employed. They are getting jobs and work…
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: The real business cycle model implies that government should vary its expenditures in respons to…
A: For changes in factor productivity, expenditures should be altered.
Q: Macroeconomists are interested in two types of phenomena: economic growth and business cycles.…
A: When talking about macroeconomics, two primary phenomena that are analyzed by macro-economists are…
Q: The housing market has weakened during every recession except which of the following? a. The…
A: We have to find The housing market has weakened during every recession except which of the…
Q: In the context of economic recession, explain monetary and fiscal measures that should be…
A: Answer: Economic recession: recession refers to the period of a general decline of economic…
Q: Which of the following is a Keynesian approach for dealing with a recession? a) Raise interest…
A: The Keynesian approach to dealing with a recession is expansionary fiscal policy. Expansionary…
Q: Why/how has Covid-19 led to global economic recession?
A: Recession is a period which is characterized by significant decline in general economic activity.…
Q: The following graph approximates business cycles in the United States from the first quarter of 1955…
A: The business cycle refers to the cyclical upward movement and downward movement in most economic…
Q: Which of the following statements are true? Select one or more: a. A recession is a downturn in the…
A: The economics as a study is based upon the basic idea that the resources which are present with the…
Q: Assume that an economy currently experiences an decrease in both employment and real GDP. The…
A: The Gross Domestic Product is the summation of the money value of all the final goods and services…
Q: A recession will occur if an economy’s actual GDP ____ its potential GDP. a. rises above b.…
A: If the actual GDP of an economy is equal to its potential GDP occurs at full employment level, the…
Q: f inventories are increasing, what part of the business cycle could we be entering? Group of answer…
A: A business cycle is a cycle of fluctuations in the GDP around its long-term growth rate. It is…
Q: What is ‘recession”? How many times did Turkish economy enter recession in its history? Discuss the…
A: In recession,economic activity is down. Because of decrease in stock prices,employment level,profits…
Q: generally rise during recessions.
A: Answer Unemployment tends to rise quickly and sometimes stays elevated throughout a recession. With…
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- How is long-term growth illustrated in an AD/AS model?Which of the following economic environments would most likely be associated with a recession? Unemployment falling to 30-year low Unemployment increasing from 5% to 9% during the year New businesses opening in record numbers while new housing starts reach a 10-year high GDP growing at an annual rate of 4.2%Define the term economic recession?
- According to the textbook definition, a recession occurs if ___ GDP decreases for ____ Question 35 options: A) real; two consecutive quarters B) nominal; two consecutive quarters C) real; one quarter D) nominal; one quarterTypically, when will the National Bureau of Economic Research (NBER) announce that the economy is in a recession? A. on the date that the recession begins B. typically, more than 10 years after the recession begins C. about six months before the recession begins D. a year or more after the recession has begunWhich of these economic problems is not associated with the study of macroeconomics? a. How to increase employment rate? b. How to influence aggregate demand through taxation? c. How to predict the demand for medicines? d. How to get out from economic recession?
- What makes the 2007-2009 recession special? 1. because of the length of the recession 2. because of period required for the economy to recover from the recession and whyFollowing a demand-side recession, what happens to full employment GDP (C+I+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?What is the relationship between the business cycle and economic growth, and how do government policies aim to manage economic fluctuations?A) The business cycle has no connection to economic growth, and government policies have no impact on fluctuations.B) The business cycle represents the periodic expansion and contraction of economic activity, and government policies, such as fiscal and monetary measures, aim to mitigate the negative effects of economic downturns and support long-term growth.C) The business cycle is solely influenced by consumer spending.D) Government policies only exacerbate economic fluctuations.
- In what year and quarter did U.S. real GDP first exceed its pre-recession level?Economic variables are sometimes divided into “leading indicators” and “lagging indicators.” Leading indicators are variables that start to change before an economic expansion or contraction. Lagging indicators change only when an expansion or contraction is well underway. Based on the graph of the unemployment rate, is unemployment a leading or lagging indicator of recessions? Explain. How can we use this information when providing advice to a company that sells goods to consumers?A number of macroeconomic variables decline during recessions. One of these variables is the GDP. What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in these economic variables which are to be expected. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles?
