MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
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Question
Chapter 9, Problem 2RQ
To determine
The immediate cause of large majority of cyclical changes.
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Students have asked these similar questions
What is likely to be true at the peak of the business cycle?
A. Real GDP, unemployment, and inflation are all likely to increase.
B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing.
C. Real GDP, unemployment, and inflation are all likely to decrease.
D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.
What is most likely to occur during the expansionary phase of the business cycle?
A.)
Real GDP increases and unemployment decreases
B.)
Inflation increases and unemployment increases
C.)
Real GDP decreases and inflations increases
D.)
Real GDP decreases and unemployment decreases
Which phase of the business cycle can describe the unemployment rate at its lowest and inflation is high because of the increase in demand?
Downturn
Expansion
Peak
Trough
Chapter 9 Solutions
MACROECONOMICS (LL)
Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Prob. 11DQCh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 11RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8P
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Similar questions
- Which of the following are counter-cyclical indicators in an economy a. Inflation b. Unemployment c. Business profits d. Bank lendingarrow_forwardAccording to the Austrian business cycle theory, a key feature of a deflationary depression is A) an increase in money and credit B) unrepayable debts lead to financial system losses C) businesses that are too big to fail must be subsidized D) higher pricesarrow_forwardWhich one of the following statements are incorrect: a)Keynesian economists believe that the business cycle is caused by external factors, such as government interference in the economy b)classical economists believe that the market economies are inherently stable and fluctuations are ascribed to exogenous factors c)Classical economists believe that government should not intervene in the economy to try to smooth out the business cycle d)structuralist economists believe that the market system is neither inherently stable nor systematically unstablearrow_forward
- Suppose you live in a community of 5,000 people where everyone wants to work and seeks employment. If 4,000 people are over 16 years old and 3,000 of them are employed, what is the unemployment rate in this community? What are the three major types of unemployment? What are their causes? Discuss the costs associated with high inflation. Describe the four phases of the classical business cycle explaining how employment is typically affected during each phase? Unemployment and Inflation and Long-run Growth (chapter 10)arrow_forwardWhich phase of the business cycle can describe the unemployment rate at its lowest and inflation is high because of the increase in demand? A) Expansion B) Peak C) Trough D) Downturnarrow_forwardQ 1st part Describe the four phases of the classical business cycle 2nd part Explaining how employment is typically affected during each phase? do 2nd part connecting with part one I got the first part I want Dear Sir/Madam please help me explain part 2 by using my first part thanks Expansion: A speedup in the pace of economic activity defined by high growth, low unemployment, and increasing prices. The period marked from trough to peak. Peak: The upper turning point of a business cycle and the point at which expansion turns into contraction. Contraction: A slowdown in the pace of economic activity defined by low or stagnant growth, high unemployment, and declining prices. It is the period from peak to trough. Trough: The lowest turning point of a business cycle in which a contraction turns into an expansion. This turning point is also called Recovery.arrow_forward
- Q.1.18 During an economic expansion, real GDP ____ and unemployment ____. (a) increases, increases(b) increases, decreases(c) decreases, increases(d) decreases, decreasesQ.1.19 Individuals leave the labour force when they: (a) find employment.(b) become unemployed.(c) retire.(d) work in the informal sector. Q.1.20 A pattern of expansions and downswings discerning economic activity over a number of years is known as:(a) cyclical instability.(b) economic growth.(c) business cycle.(d) business cycle indicators.arrow_forwardThe following are examples of macroeconomic questions that remain debated among economists and policy-makers: 1. Does economic growth create inequality in income and wealth? 2. Do lower wages reduce unemployment? 3. Is there a trade-off between unemployment and inflation? 4. Is a large government debt a problem? 5. Should central banks target inflation in asset prices or only in consumer prices? Choose any two of the above questions and in each case briefly outline the economic reasoning behind different viewpoints.arrow_forwardFill in the Blanks A. The business cycle is defined as the periodic cycle up and down movement of actual economic production. It is characterized by alternating periods of economic expansion and economic recession. It is often characterize by the tendency of _____________(Real GDP/Potential GDP)to fluctuate about______________(Real GDP/Potential GDP) B. A(n) ____________________(recessionary/expansionary) period of the business cycle is characterized by declining total economic production and rising unemploymentarrow_forward
- Complete the sentence: “According to Real Business Cycle Theories of the business cycle, ___________________ should be highlighted and supported by policies. Group of answer choices Aggregate demand Aggregate supply Aggregate employment Aggregate investmentarrow_forwardThe change in the business cycles can impact how the economy is operating. Explain how an increase in the unemployment rate would impact how businesses will operate. Analyze how economic growth can be impacted by changes in the unemployment rate.arrow_forward
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