Homework Answers
Option 'C' is correct. Real wages will fall, SRAS will shift rightward, and the economy will produce Natural Real GDP.
Recessionary gap is a situation when the economy is operating at a level below the full employment level and real GDP is lower than the full employment level.
In self regulating economy policymakers do not intervene and Real wages fall in long run and surplus exists in market.The wage falls and SRAS curve moves right until it passes through long run equilibrium point and the economy start producing Natural Real GDP.
Therefore option 'c' is correct.
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Suppose the economy is self-regulating and characterized by a recessionary gap. In the long run: Real...
Suppose the economy is self regulating and is characterized by a recessionary gap. In the long...
Suppose the economy is self regulating and is characterized by a recessionary gap. In the long run the the price level will ----- and Real GDP will ----- Α . rise, fall rise, rise fall, rise Your answer fall, fall
1) If the economy exhibits a recessionary gap in the short run, the real wage rate...
1) If the economy exhibits a recessionary gap in the short run, the real wage rate will __________________ (fall, rise), and short-run aggregate supply curve will shift __________________ (leftward, rightward). 2) If the economy exhibits an expansionary gap in the short run, the real wage rate will __________________ (fall, rise), and short-run aggregate supply curve will shift __________________ (leftward, rightward).
Suppose the economy is self regulating and the economy is characterized by a recessionary gap. Check...
Suppose the economy is self regulating and the economy is characterized by a recessionary gap. Check all that apply. Select all that apply The quantity supplied of labor is less than the quantity demanded. The real wage rate is too high. Your answer The real wage rate is at an equilibrium. There is a surplus of labor in the labor market. Your answer
Econ hw please help thank you! NAN Print Last Name, First Name 6. In a self-regulating...
Econ hw please help thank you!
NAN Print Last Name, First Name 6. In a self-regulating economy, inflationary gaps are automatically eliminated in the le run by: a. decreases in wage rates that cause short-run aggregate supply to shift rightwo decreases in wage rates that cause short-run aggregate supply to shift left word increases in wage rates that cause short-run aggregate supply to shift rightward increases in wage rates that cause short-run aggregate supply to shift leftward Assume the economy...
if the economy is in a recessionary gap a. real gdp is greater than natural real...
if the economy is in a recessionary gap a. real gdp is greater than natural real gdp b. real gdp is equal to natural real gdp c. real gdp is less than natural real gdp d. the (actual)unemployment rate is less than the natural unemployment rate. d. a and d
6. Demonstrate the decrease in wealth using the closed AD-AS model, ceteris paribus, in both the...
6. Demonstrate the decrease in wealth using the closed AD-AS model, ceteris paribus, in both the short-run and long-run. Assumptions: (1) start in long-run equilibrium; (2) prices are sticky; (3) nominal wages are fixed in the short-run. [Note: this is the self-correcting version.] [Sub-questions 6-10 are connected.] In the short-run, _______ shifts _______. A. the aggregate demand curve; leftward B. the aggregate demand curve; rightward C. the short-run aggregate supply curve; leftward D. the short-run aggregate supply curve; rightward E....
Question 28 (3 points) Suppose the economy currently is in a recessionary gap. The Fed engages...
Question 28 (3 points) Suppose the economy currently is in a recessionary gap. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to increase short-run aggregate supply, decrease prices, and increase real GDP increase aggregate demand, increase prices, and increase real GDP increase aggregate demand, increase prices, and decrease real GDP increase short-run aggregate supply, decrease in prices, and decrease in real GDP
Question 2 (3 points) Suppose the economy currently is in a recessionary gap. The Fed engages...
Question 2 (3 points) Suppose the economy currently is in a recessionary gap. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to increase aggregate demand, increase prices, and increase real GDP - increase aggregate demand, increase prices, and decrease real GDP increase short-run aggregate supply, decrease in prices, and decrease in real GDP o increase short-run aggregate supply, decrease prices, and increase real GDP Page 2 of 30 Previous Page Next Page
1.Suppose home prices and stock prices plummet, while bank failures dramatically inhibit planned investment spending. Use...
1.Suppose home prices and stock prices plummet, while bank failures dramatically inhibit planned investment spending. Use the AD/SRAS diagram to predict the impact on the equilibrium price level and the level of real GDP. 1.The Price level and GDP both fall. 2The Price level and GDP both rise 3.The Price level falls and GDP stays the same. 4.The Price level rises and GDP stays the falls. 2. An inflationary output gap exists when... 1.Actual GDP is below potential GDP and...
According to the Classical model, what happens when there is a recessionary GDP gap? (check all...
According to the Classical model, what happens when there is a recessionary GDP gap? (check all that apply) a.The economy self-adjusts back to potential GDP b.The economy stays in recession unless the government acts to increase aggregate demand c.An excess supply of labor causes wage rates to fall d.The price level rises e.An excess demand for labor causes wage rates to rise What are the implications of wages being "sticky downward"? (check all that apply) a.Employers will lay off workers...
Suppose the economy is self regulating and is characterized by a recessionary gap. In the long run the the price level will ----- and Real GDP will ----- Α . rise, fall rise, rise fall, rise Your answer fall, fall
Suppose the economy is self regulating and the economy is characterized by a recessionary gap. Check all that apply. Select all that apply The quantity supplied of labor is less than the quantity demanded. The real wage rate is too high. Your answer The real wage rate is at an equilibrium. There is a surplus of labor in the labor market. Your answer
Econ hw please help thank you!
NAN Print Last Name, First Name 6. In a self-regulating economy, inflationary gaps are automatically eliminated in the le run by: a. decreases in wage rates that cause short-run aggregate supply to shift rightwo decreases in wage rates that cause short-run aggregate supply to shift left word increases in wage rates that cause short-run aggregate supply to shift rightward increases in wage rates that cause short-run aggregate supply to shift leftward Assume the economy...
Question 28 (3 points) Suppose the economy currently is in a recessionary gap. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to increase short-run aggregate supply, decrease prices, and increase real GDP increase aggregate demand, increase prices, and increase real GDP increase aggregate demand, increase prices, and decrease real GDP increase short-run aggregate supply, decrease in prices, and decrease in real GDP
Question 2 (3 points) Suppose the economy currently is in a recessionary gap. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to increase aggregate demand, increase prices, and increase real GDP - increase aggregate demand, increase prices, and decrease real GDP increase short-run aggregate supply, decrease in prices, and decrease in real GDP o increase short-run aggregate supply, decrease prices, and increase real GDP Page 2 of 30 Previous Page Next Page
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