Homework Answers
This is shown by a leftward shift of the AS curve. This raises the price level while decreases the real GDP. This happens because when there is a decreased production, perhaps because of decreased productivity or an increased wage rate, there is an adverse supply shock which shifts the short run AS leftwards. Consequently the price level rises between year 1 and 2 while real GDP declines
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15. The price level in year 1 is lower than the price level in year 2:...
27. A) Both the price level and Real GDP increased between year 1 and year 5....
27. A) Both the price level and Real GDP increased between year 1 and year 5. Explain and diagrammatically represent two things that could have happened to cause this state of affairs? B) Changes in Y in the classical model originate on the supply-side of the economy. Do you agree or disagree? Explain and diagrammatically represent your answer.
1. The increase in government spending shifts which curve in which direction? (1 point) 2. Because...
1. The increase in government spending shifts which curve in which direction? (1 point) 2. Because the way the curve in question 1 shifted, the economy moves to a short run macro equilibrium with a) a higher or lower price level? b) a higher or lower real GDP? and c) a higher or lower unemployment rate? Be sure that you answer all 3 parts. (1 point) 3. From where the economy is in question 2, what will be the sequence...
Relative price Relative price (1) Nominal output (2) Real output Price level Price level (3) Nominal...
Relative price Relative price (1) Nominal output (2) Real output Price level Price level (3) Nominal output Real output Which of the graphs correctly labels the axes of the AS-AD model? A) Graph (1) B) Graph (2) C) Graph (3) D) Graph (4) Question 60 (2 points) If a nation's annual real GDP growth rate is 2.5% we can expect real GDP to double in about -----years. Enter your answer as a whole number (answers ending in 0.5 or higher...
1. Assuming the price level decreased, and real gross domestic product (GDP) is greater than nominal...
1. Assuming the price level decreased, and real gross domestic product (GDP) is greater than nominal GDP. Is the current year before or after the base year? 2. Official GDP may understate the actual output of an economy. Give one possible reason to explain this.
1. Assuming the price level decreased, and real gross domestic product (GDP) is greater than nominal...
1. Assuming the price level decreased, and real gross domestic product (GDP) is greater than nominal GDP. Is the current year before or after the base year? 2. Official GDP may understate the actual output of an economy. Give one possible reason to explain this.
Please help answer this graph Price level In the year 2000, the country of Economika was...
Please help answer this graph
Price level In the year 2000, the country of Economika was in long-run macroeconomic equilibrium, as shown in the graph below. The full-employment level of GDP in 2000 was $5 billion LRAS, SRAS In 2001, the following events occurred (1) Growth in factors of production and technology caused potential GDP to rise to $6 billion (2) Consumers became more pessimistic about the future, and thus aggregate demand growth was not large. (3) There was a...
Price Level (CPI) The hypothetical information in the following table shows what the situation will be...
Price Level (CPI) The hypothetical information in the following table shows what the situation will be in 2015 if the government does not use fiscal policy. 115 Potential Real Year GDP Real GDP Price Level 2014 2015 $1.52 trillion $1.57 trillion $1.52 trillion $1.52 trillion 106.0 108.3 a. If Parliament wants to keep real GDP at its potential level in 2015, it should use policy government purchases and/or The government should be taxes. 106 b. Parliament is successful in keeping...
1. Explain what will happen to the price level real GDP and the unemployment rate in...
1. Explain what will happen to the price level real GDP and the unemployment rate in the following cases: a. AD falls by the same amount that SRAS rises b. AD falls by less than SRAS rises c. AD falls by more than SRAS falls d. AD falls by the same amount that SRAS falls e. AD falls by less than SRAS falls 2. Explain how expectations about future sales will affect investment. 3. How will a change in the...
Question 6 2 pts The nominal GDP can be lower for a given year than the...
Question 6 2 pts The nominal GDP can be lower for a given year than the real GDP. For example, if the real GDP in 2019 for a country is $50,000,000, we know the nominal GDP in 2019 for that country can be something below $50,000,000 True False
The table shows this year's nominal GDP and the price level. If nominal GDP goes up...
The table shows this year's nominal GDP and the price level. If nominal GDP goes up by 4 percent, and the price level goes up 2 percent next year, calculate next year's nominal GDP, price level, and Real GDP. Nominal GDP (in millions) Price Level Real GDP (in millions) This year $2,200.0 100 2200.0 Next year __. __. __ With the answer can you explain how you get nominal and real GDP? Thank you!
27. A) Both the price level and Real GDP increased between year 1 and year 5. Explain and diagrammatically represent two things that could have happened to cause this state of affairs? B) Changes in Y in the classical model originate on the supply-side of the economy. Do you agree or disagree? Explain and diagrammatically represent your answer.
1. The increase in government spending shifts which curve in which direction? (1 point) 2. Because the way the curve in question 1 shifted, the economy moves to a short run macro equilibrium with a) a higher or lower price level? b) a higher or lower real GDP? and c) a higher or lower unemployment rate? Be sure that you answer all 3 parts. (1 point) 3. From where the economy is in question 2, what will be the sequence...
Relative price Relative price (1) Nominal output (2) Real output Price level Price level (3) Nominal output Real output Which of the graphs correctly labels the axes of the AS-AD model? A) Graph (1) B) Graph (2) C) Graph (3) D) Graph (4) Question 60 (2 points) If a nation's annual real GDP growth rate is 2.5% we can expect real GDP to double in about -----years. Enter your answer as a whole number (answers ending in 0.5 or higher...
Please help answer this graph
Price level In the year 2000, the country of Economika was in long-run macroeconomic equilibrium, as shown in the graph below. The full-employment level of GDP in 2000 was $5 billion LRAS, SRAS In 2001, the following events occurred (1) Growth in factors of production and technology caused potential GDP to rise to $6 billion (2) Consumers became more pessimistic about the future, and thus aggregate demand growth was not large. (3) There was a...
Price Level (CPI) The hypothetical information in the following table shows what the situation will be in 2015 if the government does not use fiscal policy. 115 Potential Real Year GDP Real GDP Price Level 2014 2015 $1.52 trillion $1.57 trillion $1.52 trillion $1.52 trillion 106.0 108.3 a. If Parliament wants to keep real GDP at its potential level in 2015, it should use policy government purchases and/or The government should be taxes. 106 b. Parliament is successful in keeping...
Question 6 2 pts The nominal GDP can be lower for a given year than the real GDP. For example, if the real GDP in 2019 for a country is $50,000,000, we know the nominal GDP in 2019 for that country can be something below $50,000,000 True False
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