During a recession: the unemployment rate increases true V the inflation rate increases [Choose the growth...

Question

Question

Answer 1

Answer #1

During recession, economic activity will decrease. At this company will phase some losses. So at this time output of company will fall. So , unemployment rate will decrease . The statement is true.
During recession, bank offen cut interest rates to encourage borrowing and investing an attempt to stimulating economy. So, interest rate will fall. In question above statement is false.
During recession, economic activity will decrease. So, growth rate of real GDP will fall. So, above statement is true.

Answer 2

Similar Homework Help Questions

During the Great Depression, the economy experienced inflation disinflation deflation hyper-inflation During the Great Depression, output...

During the Great Depression, the economy experienced inflation disinflation deflation hyper-inflation During the Great Depression, output growth increased at a slower than normal rate was negative for 4 quarters before turning positive was negative for 4 years before turning positive didn't decline as much as during the Great Recession While there is no "standard" for distinguishing an economic depression from a recession, in general economists would look at the magnitude of which of the following real GDP decline unemployment increase...
26. Suppose the GDP growth rate is 6 percent and inflation is 2 percent. If the...

26. Suppose the GDP growth rate is 6 percent and inflation is 2 percent. If the velocity of money remains constant, what is the change in real money balances? 27.It sometimes happens that during a severe recession the unemployment rate decreases a bit long before the economy recovers. Why does that happen?
If during 2011 the money supply increases by 3%, the inflation rate is 2%, and the...

If during 2011 the money supply increases by 3%, the inflation rate is 2%, and the growth of real GDP is 3%, what must have happened to the value of velocity during 2011? During 2011, the value of velocity increases by [%. (Enter your response as a whole number.)

a) Find the time series data (quarterly or monthly) on the unemployment rate, inflation rate and...

a) Find the time series data (quarterly or monthly) on the unemployment rate, inflation rate and real GDP growth in the U.S. from 1980 to 2005, and discuss whether the Okun’s Law is valid or not. Then, discuss whether the Phillips curve exists in the U.S. economy (you have to report your data source and or the website). b) Which recession is most severe in terms of its depth and the duration of unemployment? c) Why unemployment rises when the...
9. If during 2011 the money supply increases by 6%, the inflation rate is 5%, and...

9. If during 2011 the money supply increases by 6%, the inflation rate is 5%, and the growth of real GDP is 3%, what must have happened to the value of velocity during 2011? During 2011, the value of velocity increases by _____% (Enter your response as a whole number)
If an economy is operating at the natural rate of unemployment, it is OA) experiencing inflation....

If an economy is operating at the natural rate of unemployment, it is OA) experiencing inflation. B) in a recession. OC) producing at its full employment real GDP. D) in an expansion.

8. The Phillips curve is based on the observed negative relation between the rate of inflation and the unemployment rate. That is, decreases in the unemployment rate tend to be associated with in...

8. The Phillips curve is based on the observed negative relation between the rate of inflation and the unemployment rate. That is, decreases in the unemployment rate tend to be associated with increases in the rate of inflation a) Given what you know about the relation between the unemployment rate and the GDP gap, restate the Phillips curve in terms of inflation and the GDP gap. b) Based on the AD-IE model, and given your answer in (a), explain why...
Calculate GDP per capita growth rate. Is there a big difference between GDP growth rate and...

Calculate GDP per capita growth rate. Is there a big difference between GDP growth rate and GDP per capita growth rate? Can you offer some explanations why they stay approximately the same and why they change from the information you have? (hint: check the difference in terms of real GDP vs real GDP per capita) Identify whether the country has experienced business cycle changes in the past 10 years combined your information from GDP or GDP per capita growth rate,...
Economic growth is measured by the annual percentage increase in a nation's level of: inflation rate...

Economic growth is measured by the annual percentage increase in a nation's level of: inflation rate nominal GDP real GDP deflator real GDP unemployment rate

True or False: Demand-pull inflation exists when an economy experiences inflation and high unempl...

True or False: Demand-pull inflation exists when an economy experiences inflation and high unemployment simultaneously. True False Adjust the following graph to show demand-pull inflation. Aggregate Demand Aggregate Supply Aggregate Supply Aggregate Demand REAL GDP Demand-pull inflation results in ▼ price level, real GDP and ▼ employment. True or False: Demand-pull inflation exists when an economy experiences inflation and high unemployment simultaneously. True False Adjust the following graph to show demand-pull inflation. Aggregate Demand Aggregate Supply Aggregate Supply Aggregate Demand...