Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 21, Problem 12SQ
To determine
The implication of the
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Fearing a recession, the government decides to give citizens a tax rebate to buy Christmas gifts. What is a possible outcome of this action?
A.)
Inflation increases
B.)
interest rates increase
C.)
interest rates decrease
D.)
Inflation decreases
When the economy goes into a recession. real GOP---- and unemployment ___ .a. rises, risesb. rises, fallsc falls. risesd. falls, falls
The housing market has weakened during every recession except which of the following?
a. The Recession of 1974
b. The Recession of 1991
c. The Recession of 2001
d. The Recession of 2008
Chapter 21 Solutions
Economics For Today
Ch. 21.3 - Prob. 1YTECh. 21 - Prob. 1SQPCh. 21 - Prob. 2SQPCh. 21 - Prob. 3SQPCh. 21 - Prob. 4SQPCh. 21 - Prob. 5SQPCh. 21 - Prob. 6SQPCh. 21 - Prob. 7SQPCh. 21 - Prob. 8SQPCh. 21 - Prob. 9SQP
Ch. 21 - Prob. 10SQPCh. 21 - Prob. 11SQPCh. 21 - Prob. 1SQCh. 21 - Prob. 2SQCh. 21 - Prob. 3SQCh. 21 - Prob. 4SQCh. 21 - Prob. 5SQCh. 21 - Prob. 6SQCh. 21 - Mathematically, the value of the tax multiplier in...Ch. 21 - Prob. 8SQCh. 21 - Prob. 9SQCh. 21 - Prob. 10SQCh. 21 - Prob. 11SQCh. 21 - Prob. 12SQCh. 21 - Prob. 13SQCh. 21 - Prob. 14SQCh. 21 - Prob. 15SQCh. 21 - Prob. 16SQCh. 21 - Prob. 17SQCh. 21 - Prob. 18SQCh. 21 - Prob. 19SQCh. 21 - Prob. 20SQ
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- What is generally true of consumers in a recession? a. The rich suffer as the poor cut back on spending Ob. Everyone cuts back on spending, but only the low income consumer segments suffer. Everyone suffers and cuts back on spending c Od Many reallocate spending and buy less-on credit cards.arrow_forwardThink about the business cycle: during a recession, unemployment increases; it decreases in an expansionary phase. Explain what happens to TANF, SNAP, and Medicaid programs at each phase of the business cycle (recession, trough, expansion, and peak).arrow_forwardUse the AD/AS model to show how increases in government spending can lead to more inflation.arrow_forward
- In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers. A large Increase In the price of the homes people own. Rapid growth in the economy of a major trading partner. The development of a major new technology offers profitable opportunities for business. The Interest rate rises. The good imported from a major trading partner become much less expensive.arrow_forwardDue to high government spending and low interest rate in the period 2020-2022 to deal with Covid-19, the U.S. economy is now facing a high inflation situation. Many economists thought that we should cut government spending and raise interest rate to reduce national debt and inflation. Other economists thought that even though inflation is high, the government should raise spending to help the poor. Why do these economists disagree?arrow_forward(a)Discuss TWO (2) types of unemployment and provide a relevant example for each. (b)Differentiate THREE (3) types of inflation. (c)Using an appropriate graph, discuss the contractionary policies in order to control inflation.arrow_forward
- Typically, 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 begunarrow_forwardWhich MOST likely will increase unemployment in the short run? a. a positive supply shock b. a positive demand shock c. expansionary fiscal policy d.stagflationarrow_forwardThe business cycle occurs because A. the government is constantly trying to produce an inflationary gap, but expenditures in the economy cannot keep pace with the government's agenda B. aggregate demand and short-run aggregate supply fluctuate, but the money wage rate does not adjust quickly enough to keep real GDP at potential GDP C. potential GDP is increasing, and increases in aggregate demand cannot keep pace with increases in long-run aggregate supply D. the Bank of Canada is constantly increasing the quantity of money.arrow_forward
- A mild period of falling incomes and rising unemployment is called a: A mild period of falling incomes and rising unemployment is called a: A. business cycle B. boom C. recession D. depressionarrow_forwardQuestion 8 (a) Identify two macro-economic aims of the government. (b) Explain two reasons why someone may be of working age but not in the labor force? (c) What can cause an increase in a country’s labor force? (d) Explain how different types of unemployment may be caused and consider which might be the most serious. (e) Can a rise in unemployment cause a fall in inflation? (f) What are some policies government may take to reduce unemploymentarrow_forwardThe Kingdom of Wakanda is undergoing tremendous economic growth. Last year, its GDP grewby 11.45%. Wakanda's central bank - the Bank of Wakanda - is, however, worried about inflation,which has been hovering near double digits for the last two years. T'Challa, the country's ruler,says that he wants to sit down with Nakia, the Governor of the Bank of Wakanda, to discuss thecountry's potential economic problems. You are Nakia's advisor. Recommend a monetary policyfor Wakanda. How would the Bank of Wakanda carry out your recommendations?arrow_forward
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