Events that cause temporary changes in the economy affect _____________ and events that cause permanent changes affect _____________.
Question 5 options:
only the short-run; only the long-run |
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only the short-run; both the long-run and the short-run |
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both the long-run and the short-run; only the long-run |
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both the long-run and the short-run; both the long-run and the short-run |
Events that cause temporary changes in the economy affect only the short run (because the results of these temporary events can be solved in the long run) and events that cause permanent changes affect only the long run (permanent changes shift the long run aggregate supply curve).
Answer: option A
Events that cause temporary changes in the economy affect _____________ and events that cause permanent changes...
describe temporary and permanent income changes
Permanent income tax cuts tend to have a greater impact on current consumption than temporary tax cuts because permanent tax cuts affect---------- than temporary tax cuts 1. expectations about unemployment rates more 2. the government's debt positions less 3. expectations about long-run income prospects more 4. market liquidity ( money supply) less
and 9. Changes in aggregate demand can cause fluctuations in in the long run. in the short run, and only
5. What are some examples of changes in the economy that would cause the labor supply curve to shift? What might shift the labor demand curve? How do these changes affect the wage rate and the employment-population ratio?
Which is true if a nation is currently experiencing full employment? The rate of cyclical unemployment is 0%. Every person who wants a job is able to find a job. Only structural unemployment exists. 。5% of the population is without a job. Changes to both the money supply and the velocity of money induce changes in aggregate demand. However, the long-run impacts of changes in these variables are different. How are the effects of an increase in the velocity of...
2. In a closed economy, how would each of the following events affect bond price and market interest rate? Use the figures of both bond market and market of loanable funds to illustrate the changes to the interest rates. a. The economy experiences a business cycle expansion. b. The government proposes a new tax on consumption (spending on goods and services).
In a closed economy, how would each of the following events affect bond price and market interest rate? Use the figures of both bond market and market of loanable funds to illustrate the changes to the interest rates. The expected rate of inflation decreases. The federal government runs a budget deficit.
An economy is initially at potential output, in the long run, expansionary monetary policy is expected: a) not to affect output in the long run b) not to affect output in either the short run or the long run c) to affect output, but only in the long run d) to affect output in both the short run and the long run Which of the following monetary policies likely decreases aggregate demand and, in the short run, output? a) A...
Adverse experiences during early childhood and infancy can ... a) cause only physical changes in the brain b) cause both physical and chemical changes to the brain c) cause only chemical changes in the brain d) cause temporary changes to the brain, that typically do not impact later health
How do endocrine hormones affect their target cells? They cause changes in cell metabolism only. They stimulate the synthesis of glycogen. They increase the permeability of the target cell. They cause changes in cell metabolism and/or gene transcription. They affect gene transcription only.