5 An economic recession means that _______. a. GDP is critically high b. Employment is increasing c. Output and employment is down d. Output is increasing

Q: assume that the economy is operating in a recessionary. explain all the steps which the bank of…

A:

Q: 21. To control inflation rate, the government conducts a fiscal policy which is ... (A)…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 8. Which sentence is wrong about business cycle? a. It is the change in the GDP in the short run…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Explain which graph shows best how an economy responds In the 'short run' to an increase in consumer…

A: The aggregate demand curve shows all the combinations of real GDP level and price level at which the…

Q: Which of the following shocks has the biggest potential to increase a country's potential GDP? O A…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: Macroeconomics question: In an economy, the government wants to increase aggregate demand by $50…

A:

Q: Jugs of soda 20 2.00 30 1.50 1. The tables above give the purchases of an average consumer in a…

A: When we consider 2015 as a base year. E. Expected real income in 2016 = quantity of 2016*price of…

Q: write the short nots under each statement: 1. The main differences between gross domestic product…

A: Below is the formula of gross national product. GNP = GDP + Net income from abroad

Q: Explain experiencing fewer booms and bust in economy

A: Economic booms and busts are periods of economic higher and lows, very similar to the study of…

Q: Which of the following variables falls when the national economy enters a recession? (choose all…

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Q: A person’s disposable income decreases, and his personal income remains unchanged. This is because…

A: Unemployment refers to the situation where an individual who is willing to work and is actively…

Q: 1.11 If desired investment exceeds actual investment, then... a) The economy is in a recession. b)…

A: 1 - Option B When desired investment exceeds actual investment, inventories are less than the…

Q: Condition 1: National Unemployment Rate Rising,Rate of Inflation Falling Question1: Given the…

A: Unemployment refers to individuals who are employable and also seeking a job actively but are not…

Q: Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the…

A: A cycle consisting of expansions and contractions in the aggregate economic activity of a nation is…

Q: What is the value of real GDP if the change in inventory is 50? Planned Government Net Exports…

A: The change in inventories is a very small part as a component of GDP but still, it's important…

Q: potiental output is $2500 if that important im not sure. and for current gdp i got 3000 | = 125; G=…

A: Gross domestic product(GDP) is the market value of all goods and services which is produced in the…

Q: Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the…

A: A cycle consisting of expansions and contractions in the aggregate economic activity of a nation is…

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A: a. The term paradox of thrift states that if every person in an any economy increase their…

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Q: A.  Is nominal GDP a flow variable?   B. Is real GDP a flow variable?   C.  Is labor force a…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: 69. The shortfall between actual real GDP and potential GDP a. decreases as the unemployment rate…

A: When real GDP is less than Potential GDP, the economy is facing a recessionary output gap.

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Q: Doing a contractionary phase of the business cycle which of the following most likely of occurs?

A: Business cycles represents the recurrent ups and down in the level of GDP produced by an economy…

Q: 22. Using the macroeconomic data in #21 above and assuming a full employment economic output of…

A: Answer in Step 2

Q: A number of macroeconomic variables decline during recessions. One of these variables is the GDP.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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Q: Question 15 The business cycle measures O a) short-run fluctuations in economic activity. O b)…

A: Correct option is a) "short- run fluctuations in economic activity."

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Q: 21. Given the following macroeconomic data of a hypothetic economy: C = 175 + 0.75(DI) | = 50 G = 35…

A: Answer for 21st Question DP = Y = C + I + G + (X-M) DI = Y - T Therefore, DI = C + I + G + (X-M) - T…

Q: 1. the aggregate supply curve shows the negative relationship between general price and real GDP.…

A: Real GDP is a proportion of a nation's GDP that has been adapted to expansion. Balance this with…

Q: What is the impact of recession in our economy?

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Q: macroeconomics- keynesian math and graphs

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Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.