Homework Answers
at the natural rate of unemployment.
The Potential output of an economy is the level of output produced when the economy is operating at natural rate of unemployment.
Add Answer to:
1 pts The potential output of an economy is the level of output produced when the...
The full employment output level is the maximum amount of output that the economy can produce...
The full employment output level is the maximum amount of output that the economy can produce when all its resources are fully employed, or its potential output level. The intersection of AD = AS and the vertical line are the same. This intersection of all three curves is the potential real GDP and the natural rate of unemployment. True False An inflationary gap exists when the macro economy is in equilibrium at more than the potential output of the economy...
A recessionary gap exists when the macro economy is in equilibrium at less than the potential...
A recessionary gap exists when the macro economy is in equilibrium at less than the potential output of the the economy because aggregate demand is insufficient to fully employ all of society's resources. In other words, the equilibrium (AD = AS) occurs to the left of the vertical long-run supply curve. At this point, potential output is reached (full employment) and if any unemployment occurs, then it is due to structural or frictional, that is, the economy is at its...
The rate of unemployment when the economy is at its potential output is called the: Multiple...
The rate of unemployment when the economy is at its potential output is called the: Multiple Choice frictional rate of unemployment. natural rate of unemployment. structural rate of unemployment. non-recessionary rate of unemployment.
2. According to chapter 10 of the lectures, every society or economy has a potential output...
2. According to chapter 10 of the lectures, every society or economy has a potential output also called natural rate of output or full-employment rate of output or long-run aggregate supply. What factors determine the size of an economy’s potential output? 3. Societies don’t always produce their potential output level in the short run. Sometimes they might have an expansionary gap and sometimes a recessionary gap. a. What is an expansionary gap? b. What is a recessionary gap?
QUESTION 7 When a recessionary gap occurs C a. real output exceeds the natural level of...
QUESTION 7 When a recessionary gap occurs C a. real output exceeds the natural level of output, and unemployment exceeds its natural rate b, real output exceeds the natural level, and unemployment is less than its natural rate C c.real output is less than the natural level of output, and unemployment exceeds it natural rate C d. real output is less than the natural level of output, and unemployment is less tha its natural rate QUESTION 8 What is a...
Unemployment rate: natural rate of unemployment-0.5 x (output gap) 1. Use Okun's Law to estimate the...
Unemployment rate: natural rate of unemployment-0.5 x (output gap) 1. Use Okun's Law to estimate the following: a) The current US unemployment rate is around 10%, and level of inflation is close to 0%. If the natural rate of unemployment is 6%, what can we say about the output gap (or at what production capacity is the economy is operating relative to the potential capacity is the économy is operating relative to the potential output?)? The current US unemployment rate...
Suppose the economy is operating below potential output. Inflation is 2% and expected inflation is 3%....
Suppose the economy is operating below potential output. Inflation is 2% and expected inflation is 3%. The unemployment rate is 8% and the natural unemployment rate is 4%. 54. iv. Draw a long-run Phillips curve and a short-run Phillips curve consistent with these conditions w. The government implements expansionary monetary policy. As a result, unemployment decreases to 6% and inflation increases to 2.5%. Expectations however. do not change. Show where the economy is on the graph you drew for (a)...
If unemployment is above the natural level of unemployment, which one of these statements MUST be...
If unemployment is above the natural level of unemployment, which one of these statements MUST be true? Select one: O a. Employment must be below full employment O b. Cyclical unemployment must be negative o c. Real GDP must be above potential GDP d. The economy must be in an expansion e. The economy is experience a strong demand-pulled inflation
A Explain briefly why actual unemployment is never zero even when the economy is considered to...
A Explain briefly why actual unemployment is never zero even when the economy is considered to be in a state of full employment. B why do economists and business investors expect inflation to accelerate when actual unemployment falls below the natural rate of unemployment (NAIRU)? C What is the current actual unemployment rate for the US economy? Do you think the current unemployment rate is less than, equal to or above NAIRU?Explain your answer.
Question 18 (5 points) When the economy is producing its potential GDP: a) There is only...
Question 18 (5 points) When the economy is producing its potential GDP: a) There is only seasonal unemployment. Ob) There is only the structural rate of unemployment. O c) There is only the frictional rate of unemployment. Od) There is no unemployment. Oe) There is only the natural rate of unemployment.
A recessionary gap exists when the macro economy is in equilibrium at less than the potential output of the the economy because aggregate demand is insufficient to fully employ all of society's resources. In other words, the equilibrium (AD = AS) occurs to the left of the vertical long-run supply curve. At this point, potential output is reached (full employment) and if any unemployment occurs, then it is due to structural or frictional, that is, the economy is at its...
The rate of unemployment when the economy is at its potential output is called the: Multiple Choice frictional rate of unemployment. natural rate of unemployment. structural rate of unemployment. non-recessionary rate of unemployment.
QUESTION 7 When a recessionary gap occurs C a. real output exceeds the natural level of output, and unemployment exceeds its natural rate b, real output exceeds the natural level, and unemployment is less than its natural rate C c.real output is less than the natural level of output, and unemployment exceeds it natural rate C d. real output is less than the natural level of output, and unemployment is less tha its natural rate QUESTION 8 What is a...
Unemployment rate: natural rate of unemployment-0.5 x (output gap) 1. Use Okun's Law to estimate the following: a) The current US unemployment rate is around 10%, and level of inflation is close to 0%. If the natural rate of unemployment is 6%, what can we say about the output gap (or at what production capacity is the economy is operating relative to the potential capacity is the économy is operating relative to the potential output?)? The current US unemployment rate...
Suppose the economy is operating below potential output. Inflation is 2% and expected inflation is 3%. The unemployment rate is 8% and the natural unemployment rate is 4%. 54. iv. Draw a long-run Phillips curve and a short-run Phillips curve consistent with these conditions w. The government implements expansionary monetary policy. As a result, unemployment decreases to 6% and inflation increases to 2.5%. Expectations however. do not change. Show where the economy is on the graph you drew for (a)...
If unemployment is above the natural level of unemployment, which one of these statements MUST be true? Select one: O a. Employment must be below full employment O b. Cyclical unemployment must be negative o c. Real GDP must be above potential GDP d. The economy must be in an expansion e. The economy is experience a strong demand-pulled inflation
A Explain briefly why actual unemployment is never zero even when the economy is considered to be in a state of full employment. B why do economists and business investors expect inflation to accelerate when actual unemployment falls below the natural rate of unemployment (NAIRU)? C What is the current actual unemployment rate for the US economy? Do you think the current unemployment rate is less than, equal to or above NAIRU?Explain your answer.
Question 18 (5 points) When the economy is producing its potential GDP: a) There is only seasonal unemployment. Ob) There is only the structural rate of unemployment. O c) There is only the frictional rate of unemployment. Od) There is no unemployment. Oe) There is only the natural rate of unemployment.
Most questions answered within 3 hours.
-
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 41 seconds ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 4 minutes ago -
3. American and Japanese workers can each produce 4 cars a
year. An American worker can...
asked 7 minutes ago -
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 19 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 24 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 25 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 24 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 39 minutes ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 46 minutes ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 48 minutes ago -
36. The basic difference between government bureaus and market
firms is that bureaus:
a. can...
asked 48 minutes ago -
java
- A recursive method findR() to search for a number in list
(ArrayList)
- A...
asked 1 hour ago