A large increase in oil prices, such as the ones occurring in 1973 and 1979, will...
A large increase in oil prices, such as the ones occurring in 1973 and 1979, will cause
Group of answer choices
inflation and expansion
recession and disinflation
inflation and recession
expansion and deflation
Homework Answers
When oil price increases sharply like that happened in 1973 and 1979, it will cause a sharp increase in the general price level which will cause inflation and also there will be recession. Hence the answer will be:
inflation and recession
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A large increase in oil prices, such as the ones occurring in
1973 and 1979, will...
Which of the following recessionary periods was not caused by an AD shock Great Depression 1973-75...
Which of the following recessionary periods was not caused by an AD shock Great Depression 1973-75 recession 1981-82 recession Great Recession 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...
Between 1973 and the early 1990s, consumers responded to: Select one: a. low oil prices by...
Between 1973 and the early 1990s, consumers responded to: Select one: a. low oil prices by buying large cars, trucks, and SUVs that were not fuel-efficient. b. high oil prices by agreeing to cap-and-trade policies to limit the use of oil. c. low oil prices by using other types of energy. d. high oil prices by buying small, fuel-efficient cars.
Assume that an economy begins in macroeconomic equilibrium. Then, taxes are significantly decreased. As a result...
Assume that an economy begins in macroeconomic equilibrium. Then, taxes are significantly decreased. As a result of this change: Group of answer choices there is recession and deflation in the US there is expansion and deflation in the US there is stagflation in the US there is expansion and inflation in the US
In the real business cycle model, where prices are fully flexible (No SRAS curve), the decline...
In the real business cycle model, where prices are fully flexible (No SRAS curve), the decline in oil prices in the late 1980s caused Group of answer choices real growth to increase and inflation to decrease both real growth and inflation to increase real growth to decrease and inflation to increase real growth to increase and inflation to fluctuate
During the 1970s the US experienced “stagflation” as a result of an increase in energy prices...
During the 1970s the US experienced “stagflation” as a result of an increase in energy prices when OPEC decided to limit oil production and raise prices. Show and explain what this did to the AS AD scenario/equilibrium. (Note: stagflation refers to a recession and inflation at the same time so that both inflation and unemployment are abnormally high at the same time. The economy is “stagnant” in terms of growth but inflation is also high)
Earlier we used inflation, deflation, and disinflation and we will be explaining all of them with...
Earlier we used inflation, deflation, and disinflation and we will be explaining all of them with AD and SRAS. Which one or ones of the following is an example of deflation? Group of answer choices real GDP goes from $17 trillion to $17.8 trillion to $18 trillion the CPI goes from 260 to 266 to 268 nominal GDP goes from $18 trillion to $17 trillion to $17.5 trillion GDP deflator goes from 133 to 132 to 130 the labor force...
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in...
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar. 2. Inflation: a. reduces the cost-of-living of the typical worker. b. is measured by changes in the cost of a typical market basket of goods between time periods. c. causes the...
und Jay 3 LAW II the AD/AS mo Question 3 A simultaneous increase in AD and decrease in AS will cause Select the cor...
und Jay 3 LAW II the AD/AS mo Question 3 A simultaneous increase in AD and decrease in AS will cause Select the correct answer below: O economic recession O economic boom inflation O deflation ck on X
Suppose that oil prices increase. This has two effects: (a) firms’ costsjump up and (b) because...
Suppose that oil prices increase. This has two effects: (a) firms’ costsjump up and (b) because more of consumers’ income goes to pay for oil imports, there is lessto spend on U.S. goods. [We emphasized (a) but ignore (b) in this chapter.] Assume the Fedholds the real interest rate constant. Show what happens to the AE (AD) and Phillips curveand to output and inflation.
Please complete the statements. An ideal economic situation for a central bank would be one of...
Please complete the statements. An ideal economic situation for a central bank would be one of rates of unemployment, suggesting that output is high, coupled with rates of inflation, giving central banks more leeway to help mitigate recessions. However, due to real shocks which increase input prices, central banks must sometimes choose between low rates of growth, resulting in rates of unemployment, or equally unwanted rates of inflation. If the Federal Reserve increases the money supply too much, might become...
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar. 2. Inflation: a. reduces the cost-of-living of the typical worker. b. is measured by changes in the cost of a typical market basket of goods between time periods. c. causes the...
und Jay 3 LAW II the AD/AS mo Question 3 A simultaneous increase in AD and decrease in AS will cause Select the correct answer below: O economic recession O economic boom inflation O deflation ck on X
Please complete the statements. An ideal economic situation for a central bank would be one of rates of unemployment, suggesting that output is high, coupled with rates of inflation, giving central banks more leeway to help mitigate recessions. However, due to real shocks which increase input prices, central banks must sometimes choose between low rates of growth, resulting in rates of unemployment, or equally unwanted rates of inflation. If the Federal Reserve increases the money supply too much, might become...
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