An inflationary gap is the amount by which aggregate expenditures ____ the amount required to achieve...
An inflationary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP.
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exceed |
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equal |
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fall short of |
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are greater than |
Homework Answers
Correct option is (1).
When aggregate demand is higher than full-employment GDP, there is an inflationary gap, and
Inflationary gap = Aggregate expenditure - Full-employment GDP
Add Answer to:
An inflationary gap is the amount by which aggregate
expenditures ____ the amount required to achieve...
Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as...
Answer the following questions, which relate to the aggregate
expenditures model:
Instructions: Enter your answer as a whole
number.
a. Given the following: Ca = $120,
Ig = $60, Xn = − $10, and
G= $30, what is the economy’s equilibrium
GDP?
b. If real GDP in an economy is currently $230, will the
economy’s real GDP rise, fall, or stay the same?
(Click to select) Real GDP will
rise. Real GDP will fall. Real
GDP stay the same.
c. Suppose that full-employment...
When equilibrium GDP falls short of full-employment GDP: an inflationary GDP gap emerges. taxes...
When equilibrium GDP falls short of full-employment GDP: an inflationary GDP gap emerges. taxes will increase. taxes will decrease. a recessionary GDP gap emerges.
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420 Real Domestic Output, Possible Levels of Employment, Millions 70 90 110 130 150 Billions 400 450 460 500 540 580 600 a. If full employment in this economy is 150 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in...
If the aggregate demand (AD) curve and the aggregate supply (AS)
If the aggregate demand (AD) curve and the aggregate supply (AS) curve intersects at the level of real GDP less than potential GDP, there is a recessionary gap an above full-employment equilibrium an inflationary gap a falling real GDP
Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om...
Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om 0 1 2 3 4 5 6 7 8 9 10 Real disposable income (trillions of dollars per year) 23. In Exhibit 8-8, what is the households' marginal propensity to consume (MPC)? 20.5. c. 0.8. b. 0.75 d. 1. 24. Using the Keynesian aggregate expenditures model, which of the following is true? a Macro equilibrium may occur at levels of real GDP other than...
6. (Problem 6) An economy is facing the inflationary gap shown in the accompanying diagram. Aggregate...
6. (Problem 6) An economy is facing the inflationary gap shown in the accompanying diagram. Aggregate price level LRAS SRAS Real GDP Potential —YpY output To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and the aggregate price level change as monetary policy closes the inflationary gap? The central bank can use contractionary monetary policy. The interest rate will rise, which would encourage a...
please answer In the aggregate expenditures model, the equilibrium GDP is 2 Multiple Choice 03:53:37 always...
please answer
In the aggregate expenditures model, the equilibrium GDP is 2 Multiple Choice 03:53:37 always less than the full-employment GDP level. not necessarily equal to the full-employment GDP. assumed to be equal to the potential GDP level. always above the potential GDP level.
Answer the following questions, which relate to the aggregate expenditures model: a. Given the following: Ca...
Answer the following questions, which relate to the aggregate expenditures model: a. Given the following: Ca = $120, Ig = $60, Xn = − $10, and G = $40, What is the economy’s equilibrium GDP? Instructions: Enter your answer as a whole number. Equilibrium GDP = $ . b. If real GDP in an economy is currently $240, will the economy’s real GDP rise, fall, or stay the same? (Click to select) Real GDP will fall Real GDP will rise Real GDP will...
Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of...
Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of GDP is Band aggregate expenditures are at AE3, the Multiple Choice inflationary expenditure gap is BC. recessionary expenditure gap is BC Loo oo recessionary expenditure gap is ed. * 0 inflationary expenditure gap is ed. Consumption (8 01:51:33 0 Disposable Income eBook Suppose an economy's consumption schedule shifts from a to C2, as shown in the diagram. We can say that its Multiple Choice...
Starting with the graphs below identify which is the inflationary gap and which is the recessionary...
Starting with the graphs below identify which is the inflationary gap and which is the recessionary gap. Then show and explain how the equilibrium will move back to the point where actual equal potential GDP without any government action.. As AS AD o Real GOP 1 Real GDP
Answer the following questions, which relate to the aggregate
expenditures model:
Instructions: Enter your answer as a whole
number.
a. Given the following: Ca = $120,
Ig = $60, Xn = − $10, and
G= $30, what is the economy’s equilibrium
GDP?
b. If real GDP in an economy is currently $230, will the
economy’s real GDP rise, fall, or stay the same?
(Click to select) Real GDP will
rise. Real GDP will fall. Real
GDP stay the same.
c. Suppose that full-employment...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420 Real Domestic Output, Possible Levels of Employment, Millions 70 90 110 130 150 Billions 400 450 460 500 540 580 600 a. If full employment in this economy is 150 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in...
Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om 0 1 2 3 4 5 6 7 8 9 10 Real disposable income (trillions of dollars per year) 23. In Exhibit 8-8, what is the households' marginal propensity to consume (MPC)? 20.5. c. 0.8. b. 0.75 d. 1. 24. Using the Keynesian aggregate expenditures model, which of the following is true? a Macro equilibrium may occur at levels of real GDP other than...
6. (Problem 6) An economy is facing the inflationary gap shown in the accompanying diagram. Aggregate price level LRAS SRAS Real GDP Potential —YpY output To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and the aggregate price level change as monetary policy closes the inflationary gap? The central bank can use contractionary monetary policy. The interest rate will rise, which would encourage a...
please answer
In the aggregate expenditures model, the equilibrium GDP is 2 Multiple Choice 03:53:37 always less than the full-employment GDP level. not necessarily equal to the full-employment GDP. assumed to be equal to the potential GDP level. always above the potential GDP level.
Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of GDP is Band aggregate expenditures are at AE3, the Multiple Choice inflationary expenditure gap is BC. recessionary expenditure gap is BC Loo oo recessionary expenditure gap is ed. * 0 inflationary expenditure gap is ed. Consumption (8 01:51:33 0 Disposable Income eBook Suppose an economy's consumption schedule shifts from a to C2, as shown in the diagram. We can say that its Multiple Choice...
Starting with the graphs below identify which is the inflationary gap and which is the recessionary gap. Then show and explain how the equilibrium will move back to the point where actual equal potential GDP without any government action.. As AS AD o Real GOP 1 Real GDP
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