Following a demand-side recession, what happens to full employment GDP (C+l+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?
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- During a recession: potential GDP declines potential GDP increases real GDP declines O real GDP increasesFollowing a demand-side recession, what happens to full employment GDP (C+I+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?Suppose you are given the following information for an economy without government spending, exports, or imports. Cis desired consumption, Iis desired investment, and Y is inoome. Cand i are given by C=400 +06Y 1-300 a. What is the equaion for the aggregate expendture (AE) function? (Round your response for the intercept tem to the nearest whole number and for the siope tem to one decimal place) AE CY
- If the economy starts at full employment but investment exceeds saving, then the economy will move into a recessionary gap. O Truc O FalseRead Eye on Booms and Busts. Explain why the NBER reported that the 2008 recession began before real GDP had fallen for two successive quarters. The NBER Committee OA. anticipated the recession was going to happen because real GDP clearly peaked in 2007 OB. based its decision on peaks in the data on real personal income, real manufacturing, wholesale and retail sales, industrial production, and employment, which all peaked between November 2007 and June 2008 OC. made an error because a recession cannot occur unless real GDP falls for two successive quarters O D. saw that the business cycle trough occurred in the second quarter of 2009, so it was obvious that the recession began in 2008What is Stagflation?? Describe
- Many financial analysts and economists eagerly await the press releases for the reports on the home price index and consumer confidence index. What would be the effects of a negative report on both of these? What about a positive report?What impact would a decrease in the size of the labor force have on GDP and the puce level according to the AD/AS model?What is stagflation?
- Does a boom in Y rises above Natural rate of GDP require a price surprise? In which direction?Which country or countries are forecasted to avoid a recession in the upcoming year? C & D Only B & C Only CWhich country or countries are forecasted to avoid a recession in the upcoming year? Which country or countries are forecasted to avoid a recession in the upcoming year? ●C & D ● Only C Only B & D AV NEX'S Country Recent Q+1 A B C D Q+2 Q+3 Q+4 Quarter Real GDP Real GDP Real GDP Real GDP Real GDP Forecast Forecast Forecast Forecast 21 47 36 26 19 50 38 22 18 55 41 25 20 53 47 23 22 50 52 24Suppose an economy can be represented by the folowing table, in which employment is in millons of workers and GDP and AE are expressed in billions of dollars: Employment 100 Real GDP Aggregate Expenditures 1275 1350 1425 1500 1575 1650 1200 105 1300 1400 1500 1600 1700 110 115 120 125 fut employment is 120 milion workers? What is its what kind of expenditure oap exists size? Suppose government spending, taxes, and net exports ane all independent of the level of rcal GDP. What is the multplier an ths economy? below the econemy's potential, what is the size of the recessionary expenditure qapt