Macroeconomics (9th Global Edition)
9th Edition
ISBN: 9780134141534
Author: Andrew B. Abel, Ben Bernanke
Publisher: Pearson Global Edition
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 1AP
To determine
To ascertain: Whether alternative methodology increases or decreases the computed length of contractions or expansions.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP).
Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as .
True or False: Small ups and downs in real GDP follow a consistent, predictable pattern.
True
False
Which of the following probably occurred as the U.S. economy experienced declining real GDP in 1957? Check all that apply.
Industrial production increased.
Home sales increased.
Consumer spending declined.
Retail sales declined.
Macroeconomics is concerned with:
only long-run trends in economic activity.
only short-run fluctuations in the business cycle.
both long-run trends and short-term fluctuations in economic activity.
only with changes in the overall price level.
The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP).
Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as ________ (options: a recession, a business cycle, an expansion)
True or False: Short-term fluctuations in real GDP are irregular and unpredictable.
Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958? Check all that apply.A. Industrial production declined.B. Consumer spending increased.C. The unemployment rate declined.D. Home sales declined.
Chapter 8 Solutions
Macroeconomics (9th Global Edition)
Knowledge Booster
Similar questions
- Which of the following is not one of the possible general sources of shocks that can cause business cycles? Select one: a. Open market operations to of businesses to increase their global competition. b. Unexpected political events, such as peace treaties, new wars, or terrorist attacks, can create economic opportunities or strains. c. When productivity unexpectedly increases, the economy booms; when productivity unexpectedly decreases, the economy recedes. d. Irregular innovations may contribute to the variability of economic activity.arrow_forwardRefer to the statement below and answer the following questions: Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysia is expected to continue recording a slower economic growth in 2Q 2020 due to the Covid-19 pandemic, based on the near-term economic direction portrayed by the Leading Index (LI) for the reference month of February 2020. Mohd Uzir said GDP growth for 1Q 2020, meanwhile, was dragged by negative growth across all sectors except for services and manufacturing which grew 3.1% and 1.5% respectively. "Private final consumption expenditure in this quarter was on essential products such as food and non-alcoholic beverage, communication and housing, water, electricity and other fuels," he said in a statement on Malaysia's economic performance in 1Q 2020, today. He added that the Movement Control Order (MCO), which began on March 18, has resulted in lower household expenditure, which in turn, directly affected the industries related to food and beverage,…arrow_forwardType T or F at the end of the statement to indicate whether it is true or false. Please also provide an explanation for each choice. A) According to the Real Business Cycle Model, actual output generally fluctuates much more than the full-employment level of output. B) According to the Real Business Cycle Model, permanent productivity shocks drive fluctuations in GDP over the business cycle. C) According to the Real Business Cycle Model, decreases in employment during recessions reflect large temporary decreases in labor supply. D) The United States' large current account deficit reflects mainly its large trade deficits with China and Japan. E) Labor productivity in the United States is strongly procyclical, falling during recessions and rising during recoveries.arrow_forward
- According to the Austrian theory of the business cycle, the following is false A. A cluster of sudden errors by previously successful entrepreneurs is revealed by the recession B. Overall prices always fall during a recession C. An inflationary boom is inevitably followed by a recession D. The prices of consumer goods rise relative to the prices of capital goods during the recessionarrow_forwardBusiness Cycles are fluctuations about trend in real GDP. Identify and explain one of the most exciting things about the study of business cycles.arrow_forwardDo you remember the Harrod-Domar model? Derive it and apply it to a numerical case where d=4%, s=35%, and gY=8% last year. If s is expected to rise to 45% next year, what will happen to gY?arrow_forward
- In the basic real business cycle model, where prices are fully flexible, shocks to the dynamic aggregate demand always lead to: I. changes in real GDP. II. changes in inflation. III. changes in spending growth. A) I only B) I and III only C) II only D) I, II, and III E) II and III only F) None of the abovearrow_forwardIn which ways the product-cycle model inconsistent with the Heckscher-Ohlin model? In which ways are the two consistent? Explain in detail.arrow_forwardIn the graph of Figure I, the annual growth rate of the GDP of the United States economy is presented since the first quarter of 2004, while, in the graphs of Figure II, three different scenarios of the relationship are represented between demand and aggregate supply that reflect different situations of economic growth. 4. Explain in detail what is happening in Graph C of Figure II and, after examining the data in the graph of Figure I, identify in what period of time this situation is occurring. Figure I = Real data of the United States economyFigure 2 = Representation of the aggregate demand and supply modelDA = AGGREGATE DEMANDGDP = GROSS DOMESTIC PRODUCTNGP = GENERAL PRICE LEVELOAL = LONG TERM AGGREGATED OFFEROAC = SHORT-TERM AGGREGATE OFFERarrow_forward
- Part 1 Please analyse the various components of AD for India. Track the GDP growth of India pre and post COVID. Analyse the reasons for any changes in the growth rates. Compare the growth of India with two advance economies and two emerging economies. PART 2 Mention and evaluate the demand management policies that have been taken by the Indian Government. You are encouraged to look into the data published by the central bank and statistical organisations of the country. Also please use the appropriate graphs to support your analysis.arrow_forwardApply current Australian economy to the AD/AS Model (Diagrams required) and determine which phase the economy is in: 2 phases in a Business Cycle: Recession (downturns) or Recovery (upturns) 2 turning cycle in a Business Cycle: Peak or Trougharrow_forward10.14 Total economic output in three years. The n - vector xt denotes the economic output of a country in n different sectors, in yeart. An economist models the economic output using a linear dynamical system model xt+1 = Axt, where A is an n \times n matrix. Assuming her model is correct, find an expression for the total economic output in yeart + 3, in terms of xt and A. (The total economic output is the sum of the economic output in the n sectors.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education