Which of the following will probably rise when the economy is in a recession?

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: What stage in the business cycle does the shift in Aggregate Demand represent?

A: Aggregate demand refers to the total expenditure that all the sectors of the economy are planning to…

Q: Explain why is it possible that the economy will not self-correct out of a recessionary gap?

A: Self correction is viewed as movements of the short-run aggregate supply curve brought about by…

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: Which of the following did the United States undertake to migitate the Great Recession ?

A: The great recession would result in the situation of a lower GDP and a lower price level. The great…

Q: What is aggregate demand and supply?

A: In economics, output is the amount of products and services produced during a given period of time.…

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: 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: Create a graph that shows where Mexico currently is on the business cycle. Be sure to include an…

A: Mexico is currently running into recession attributing the pandemic situation and fiscal tightening…

Q: Define stagflation?

A: The persistent increase in the price level is known as the inflation. Inflation is worrisome for the…

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: How can shipping delays and shortages of intermediate goods cause a recession?   Why may these…

A: In economics, recession refers to a fall in industrial or trade activity that implies a decline in…

Q: In a situation of recession, what are the types of goods that will see their demand increase? Give…

A: Recession refers to a period of temporary economic fall during which trade and industrial activity…

Q: Y=C t /even when the economy is not in equilibrium

A:

Q: Which of the following components of consumption spending typically sees the largest decline in…

A: A recession is a time of financial compression rather than development. During such periods, the…

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: Why does a business cycle serve as a forecasting model

A: Business cycle: Business cycles are the fluctuations in economic activities over a long-period…

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 is not a component of the aggregate demand curve?a.Government…

A: Aggregate demand is the total value of goods and services produced in the economy in a given period…

Q: What are the three key facts about economic fluctuations? Explain briefly.

A: Economic Fluctuations are the changes in the economy due to natural or artificial changes occurring…

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: Suppose most business executives expect a slowdown in the economy.  How might this situation affect…

A: The loss of business and consumer confidence leads to an economic recession.

Q: what is the importance of aggregate demand?

A: Aggregate Demand refer to the sum total of income that the seller or producer expect from the sales…

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: Can we attain equilibrium GDP on the demand side and still have high unemployment?

A:

Q: Which kind of economic measures do you recommend at the current economic situation which is…

A: A stagflation situation is characterized by a high inflation rate and low economic growth. This…

Q: What factors cause Stagflation?

A: please find the answer below.

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: what might explain the differences seen in the role of consumption and investment during the…

A: Role of Consumption and investment is very important whether it is recovery or recessionary phase of…

Q: How do you explain why investment falls as interest rate rises

A: The investment and interest rate are the two different concepts that are inter-related with each…

Q: What is the impact of recession in our economy?

A: The economies around the globe have a limit to the amount of resources available with them. The…

Q: What industry sectors are most likely to add jobs during a down economy and an improving economy…

A: A down economy is referred as an economy facing Recession. A period when there is decline in the…

Q: Briefly analyse the impact on an economy of a prolonged period of deflation

A: We can define deflation as a reduction in the overall level of prices in an economy.

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: ich of the following components of consumption spending typically sees the largest decline in demand…

A: As we know A recession is a time of financial compression rather than development in it. During such…

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: Stagflation

A: Stagflation is a word which is made by two words: 1. Stagnation 2. Inflation

Q: State the main components of the aggregate demand in the economy

A: According to the given question Aggregate demand is initially known as the total amount of the…

Q: What is macro_economics

A: Meaning of Economics: The term economics refers to the situation under which there remain…