Potential GDP is the level of aggregate output Select one: a. that can be sustained in the long run without inflation b. that can be produced if structural unemployment is zero O c. that can be produced at a zero unemployment rate O d. that can be sustained in the long run, if the capacity utilization is below 100%

Potential GDP is the level of aggregate output Select one: a. that can be sustained in the long run without inflation b. that can be produced if structural unemployment is zero O c. that can be produced at a zero unemployment rate O d. that can be sustained in the long run, if the capacity utilization is below 100%

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 17RQ: What are typical GDP patterns for a high-income economy like the United States in the long run and...

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The graph suggests that a main macroeconomic problem facing this economy is: b LRAS (P) 7X Pe a unemployment. C Price Level d Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. inflation. stagnant economic growth. SRAS underemployment. AD QuQr Real GDP (Q)
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?
How is long-term growth illustrated in an AD/AS model?
What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?
The GDP takes inflation into account and uses adjusted market prices. frictional O real adjusted O cyclical O re-evaluated
1.If the employment rate of output exceeds the planned aggreagte expenditure what will happen to the unemployment rate assuming that it will persist in the future?
Congratulationst You have been appointed an economic policy adviser to the United States, You are told that the economy is significantly abowe futtemplyoment GDP. Based on this inlormation, how can the economy would adjust to reach LR.SR Equilbrium (Classical View)? The economy wilt experience low unemployment rate, pushing wages up, and increasing the pelces of a key input (labor). shatting the sAS to the left (up). The economy will experience high unemployment rate, pushing wages down, and reducing the prices of a key input (labor). shiting the SAS to the right (down). The econoriny wil experience low unemployment rate, decreasing inceme, which will eventually shift the AD to the left. The eooncmy will experience low unemployment rate, pushing wages up, and increasing the prices of a key input (labor), shiting the sAs to the night (down).
A decrease in real GDP at the same time that nominal GDP increases would be consistent with: None of the other optionsAn increase in the price levelA period of deflationA decrease in the GDP deflator
If a Keynesian model shows that aggregate demand for both goods and labor has shifted to the left, while wages are sticky and remain at the same level and prices remain at the same prices, what will be the result in the labor market? a a shortage of labor b depression c coordinated wage reductions d a surplus of labor
Assume that an economy operates according to the sticky-wage model. The nominal wagewas set to make labor supply and labor demand equal when the expected price levelequaled 120 (as measured by the consumer price index).a. Use a graph of the labor market to illustrate what happens to the quantity oflabor employed if the actual price level over the time period when wages arestuck equals 110.b. Use a graph of the production function to illustrate how the quantity of outputproduced changes if the actual price level equals 110 when the expected pricelevel is 120.c. Given the unexpectedly low price level, will this economy be operating above,below, or at the natural rate?
Cosider the following data on U.S GDP:a.What was the growth rate of nominal GDP between 1994 to 2014?b.What was the growth rate of the GDPdeflator between 1994 to 2014?c.What was the real GDP in 1994 measured in 2009 prices?d.What was the real GDP in 2014measured in 2009 prices?e.What was the growth rate of the GDP between 1994 to 2014?f.Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP?Explain.
The 2009 GDP totaled 12.8 trillion. There was a -2.4 % change from 2008's GDP of 13.2 trillion. The US experienced an inflation rate of 0%, and the unemployment rate reached 10.5%. Which phase of the business cycle was the US experiencing? Trough O Expansion O Recession O Peak O O O O