What is the prime rate? Whogets the prime rate?

Q: why is the service sector important to the development of the primary and secondary sector?

A: An economy comprises of three sectors. Primary sector (Agriculture sector) Secondary sector…

Q: a) Briefly describe the four phases of a Business Cycle. As of the time of this assignment, in which…

A: a) Business cycle depicts the fluctuations (rise and fall) in total output produced by an economy.

Q: If GDP is currently running faster than potential GDP, can we say, based on that observation alone,…

A: Rapidly rising GDP above the potential level may or may not be harmful for the economy, it actually…

Q: The natural level of real GDP is that evel of

A: GDP is the gross domestic product of the nation, which is the total value of goods and services…

Q: Suppose you read the news that the unemployment rate increased from 5.8% to 6.7% and at the same…

A: An increase in the unemployment rate is a major problem for any economy. A person is considered to…

Q: What is national income (NI)?

A: National Income: It is defined as "the sum of total income earned by the different types of factors…

Q: Draw a graph that shows inflation and that the output is increasing and label PL's, GDP's, AD and…

A: Aggregate Demand (AD) and Aggregate Supply(AS) Framework: The AD/AS model is one of the fundamental…

Q: Why is it difficult to measure an economy’s real rate of interest?

A: Real interest rate refers to the interest rate that adjusted with the inflation. Real interest rate…

Q: What is the net aggregate income?

A: The productivity of an economy is reflected from its aggregate income that represents the total…

Q: Increased production but not increased inflation will result ti higher real GDP why?

A: The total value of goods and services produced annually in a country is referred to as gross…

Q: people typically pay more attention to their real income or their nominal income?

A: GDP is used to explain the overall economic welfare of a nation. It is used to calculate the…

Q: What is the Market Price Index?

A: A market index is a fictitious investment portfolio that represents a portion of the financial…

Q: How does inflation affect GDP?

A: GDP (gross domestic product) is vital as it provides data about the magnitude of the budget and how…

Q: What are the four phases in the typical business cycle?

A: The Four phases in the business cycle are  Expansion- Peak- Contraction- Trough-

Q: Evaluate how each of the following individuals would be affected by unanticipated inflation: (a) A…

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

Q: hy does inflation have a positive effect on the nominal interest rate?

A: The answer to the question is as follows:

Q: We could best describe the O a) loanable funds market as the market where only governments make…

A: The amount that is being charged by the lender on principal being borrowed by the borrower for using…

Q: You deposit​ $200 in a savings account on January​ 1, and the bank pays you interest of​ $10 at the…

A: Real interest rate is adjusted for the inflation.

Q: What is gdp in Econ terms?

A: The GDP is the gross domestic product or the total income of the country from the domestic goods and…

Q: Consider the following closed economy, which we shall call Gazzalestan. C=100+4/5 X YD. I=2100…

A: Given information: C = 100 + (4/5)*YD -------------> Consumption function I = 2100…

Q: d. What is the percentage change in nominal GOP between 2010 and 2019 attributed to changing prices?…

A: GDP refers to the value of all final goods and services produced in an economy over a given period…

Q: What is nominal GDP and how does it influence prices?

A: Please find the answer below.

Q: A columnist writing in the Wall Street Journal observed: "Franklin D. Roosevelt's March 1933…

A: Deflation in economics refers to a drop in the overall level of prices for goods and services. When…

Q: What word does Keynes use to describe the difference between everything an economy produces and…

A: Keynesian economics is a macroeconomic economic concept that explains overall economic expenditure…

Q: Briefly explain whether you agree or disagree with the following statements. ( a) 'If nominal GDP is…

A: The sum total of final.values of good and services is referred to be as GDP.

Q: If the employment rate increase reine 10% to 14% the economy wi

A: Employment rates measure the number of people who are currently working and have jobs.

Q: Consider an economy with thhe equation. छणालकार्ी C= atb( Y-T) = cY - dite N =fY-gi

A: Since the question you have posted consists of multiple parts, we will answer the first two parts…

Q: What is the underground economy Why is it called that?

A: The underground economy has various names like the shadow economy, black market, unofficial economy,…

Q: If there is a recession, which of the following will decline? O GDP Government purchases Real GDP…

A: A recession is a contraction in the economic cycle for two or more quarters.

Q: Explain briefly what the consumer price index tries to measure?

A: The CPI is a weighted average of prices for various consumer goods and services, such as…

Q: . Briefly explain the relationship between equilibrium real GDP and the unemployment rate.

A: Introduction Okun's Law can be used to examine the relationship between GDP and unemployment rates.…

Q: briefly explain with example five causes of inflation in the economy and how these hit the poor…

A: Inflation is defined as an increase in the general price level of an economy. The main causes of…

Q: Robert Solow, winner of the 1987 Nobel Prize in economic sciences, once wrote, “If you have to be…

A: For his contributions to the "theory of economic growth", Robert Solow received the Nobel Prize in…

Q: What is business cycle in economics and what are the four phases of business cycle?

A: According to the given question Business cycle in economics is defined as in general the amount of…

Q: Give the examples of the constant dollars used by the government?

A: The real dollars or constant dollars refer to the constant value of dollars based on one point in…

Q: Explain how a drop in GDP can influence the level of the interest rate (in 7 lines maximum). A…

A: GDP may increase for a variety of reasons, which are discussed in subsequent chapters. For now, we…

Q: What is inflationary scenario?

A: Inflation is the rise in the aggregate price level and the inflation rate is the percentage change…

Q: What is the GDP gap

A: The Gross Domestic Product or the GDP is the summation of money value of all the final goods and…

Q: Give any two example of the capital expenditure??

A: According to the given question Capital expenditure is basically defined as an expenditure which led…