EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 27, Problem 1RQ
To determine
The four phases of a business cycle.
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Exhibit 14A-2 Macro AD-AS Model
Price Level
CPI
130
120
110
100
90
O
J
T
1
1
1
17
1
1.
1
IN
F
I
1
1
9.0
1
N
1
LRAS
1
SRAS
AD
LL
9.5 10.0 10.5 11.0 11.5
Real GDP
(trillions of dollars per year)
In Exhibit 14A-2, the intersection of AD with SRAS indicates:
O a short-run equilibrium.
O a long-run equilibrium.
O that the economy needs policies to reduce unemployment.
O that the economy is at full employment.
Suppose nominal GDP for an economy rose from $120 billion in 2016 to $150 billion in 2017 and
that the inflation rate over the same period was 5 percent. By what percentage did real GDP
increase between 2016 and 2017?
O 40%
O 35%
O 20%
O 30%
O 25%
If nomiņal GDP is 10trillion and real GDP is 12trillion then the GDP deflator is:
120, indicating that the price level has increased by 20% since the base year.
83.33, indicating that the price level has increased by 83.33% since the base year.
O 120, indicating that the price level has decreased by 20% since the base year.
O 83.33, indicating that the price level has decreased by 16.67% since the base year.
Chapter 27 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQCh. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQ
Ch. 27 - Prob. 11DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 11RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5PCh. 27 - Prob. 6PCh. 27 - Prob. 7P
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