Homework Answers
C. Because when unemployment rate falls below the natural rate it increases the pressure on inflation.
Add Answer to:
Full employment is typically associated with
Question 7 Full employment is typically associated with: relatively high...
Question 26 With a vertical long run AS curve, any attempt by the government to reduce...
Question 26 With a vertical long run AS curve, any attempt by the government to reduce GDP through decrease in aggregate demand will lead to Select the correct answer below decrease in GDP with no corresponding deflation in the long run decrease in both GDP and the price level in the long run decrease in the price level with no effect on GDP in the long run decrease in the price level with no corresponding decrease in GDP in the...
Monetarists and classical economists: a. assume that the economy operates at full employment and stimulative monetary...
Monetarists and classical economists: a. assume that the economy operates at full employment and stimulative monetary policy will increase both aggregate supply and aggregate demand. b. assume the economy operates at full employment and stimulative monetary policy will only cause the price level to rise. c. assume that stimulative monetary policy will create high levels of GDP without inflation. d. assume that stimulative monetary policy will create high levels of GDP and slightly high prices.
1. If the economy is at full employment, increases in government spending: A) have a multiplier...
1. If the economy is at full employment, increases in government spending: A) have a multiplier effect on equilibrium output. B) have no effect on the aggregate price level. C) are primarily absorbed by price increases. D) reduce aggregate output. 2. Which of the following measures is NOT an example of discretionary fiscal policy? A) The unemployment compensation program pays out more money as unemployment rates rise. B) Tax rates are increased in the hope of slowing down the rate...
Price Level AD Real GDP Figure 9.6 In Figure 9.6, if full employment occurs at Qc...
Price Level AD Real GDP Figure 9.6 In Figure 9.6, if full employment occurs at Qc then aggregate demand is Too small, causing demand-pull inflation. Too small, causing cyclical unemployment Just right Too great, causing cyclical unemployment.
1. Consider an economy at full employment. If consumers and firms become less optimistic about the...
1. Consider an economy at full employment. If consumers and firms become less optimistic about the future economy then a) price levels will rise. b) output will rise. c) unemployment will rise. 2. A ________ in an AD/AS diagram could explain a decrease in cyclical unemployment. a) shift in AS to the left b) shift in AD to the right c) shift in AS to the right 3. An AD/AS model showing equilibrium in the steep section of the aggregate...
#6 Consider an economy that is operating at the full-employment level of real GDP with MPC=0.7...
#6 Consider an economy that is operating at the full-employment level of real GDP with MPC=0.7 MPC=0.7 . The short-run effect on equilibrium real GDP of a $50 billion increase in government spending ( G G ), balanced by a $50 billion increase in taxes, is...…………. abillion (Increase or Decrease) in real GDP. #7 Suppose that the MPC in a country is 0.9. Complete the following table by calculating the change in GDP predicted by the multiplier process given each...
on 7 According to the AD/AS model, a sudden decrease in business confidence would cause what...
on 7 According to the AD/AS model, a sudden decrease in business confidence would cause what to happen in the short run? et red Select one: out of 2.0 a. the real growth rate to increase and the inflation rate to rise b. the real growth rate to decrease and the inflation rate to fall on C the real growth rate to increase and the inflation rate to fall d. the real growth rate to decrease and the inflation rate...
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...
1.Say an economy is producing on its production possibilities frontier (PPF) with a combination of 0...
1.Say an economy is producing on its production possibilities frontier (PPF) with a combination of 0 units of clothing and 100 units of food. This combination is an example of Select one: Neither productive efficiency or allocative efficiency Productive efficiency but probably not allocative efficiency Allocative efficiency but probably not productive efficiency Both productive efficiency and allocative efficiency 2. Consider a perfectly competitive firm with an average total cost (ATC) of $26 and an average variable cost (AVC) of $18....
Question 20 (6 points) Suppose full employment real GDP is $1,000 billion and the money supply...
Question 20 (6 points) Suppose full employment real GDP is $1,000 billion and the money supply is $800 billion. Suppose also that the monetary velocity is constant and equal to 5. What is the price level? _.00 Now suppose the Fed increases the money supply by 4% and potential real GDP rises by 3%. In the long run, the inflation rate would be _.00% A/
Question 26 With a vertical long run AS curve, any attempt by the government to reduce GDP through decrease in aggregate demand will lead to Select the correct answer below decrease in GDP with no corresponding deflation in the long run decrease in both GDP and the price level in the long run decrease in the price level with no effect on GDP in the long run decrease in the price level with no corresponding decrease in GDP in the...
1. If the economy is at full employment, increases in government spending: A) have a multiplier effect on equilibrium output. B) have no effect on the aggregate price level. C) are primarily absorbed by price increases. D) reduce aggregate output. 2. Which of the following measures is NOT an example of discretionary fiscal policy? A) The unemployment compensation program pays out more money as unemployment rates rise. B) Tax rates are increased in the hope of slowing down the rate...
Price Level AD Real GDP Figure 9.6 In Figure 9.6, if full employment occurs at Qc then aggregate demand is Too small, causing demand-pull inflation. Too small, causing cyclical unemployment Just right Too great, causing cyclical unemployment.
on 7 According to the AD/AS model, a sudden decrease in business confidence would cause what to happen in the short run? et red Select one: out of 2.0 a. the real growth rate to increase and the inflation rate to rise b. the real growth rate to decrease and the inflation rate to fall on C the real growth rate to increase and the inflation rate to fall d. the real growth rate to decrease and the inflation rate...
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...
Question 20 (6 points) Suppose full employment real GDP is $1,000 billion and the money supply is $800 billion. Suppose also that the monetary velocity is constant and equal to 5. What is the price level? _.00 Now suppose the Fed increases the money supply by 4% and potential real GDP rises by 3%. In the long run, the inflation rate would be _.00% A/
Most questions answered within 3 hours.
-
Intensity level is given by b = 10 log(I/I0) with I0 = 10−12
W/m2. The usual...
asked 17 seconds ago -
For each of the following product pairs, what would you guess
about their cross price elasticity...
asked 3 minutes ago -
GreyCo collected $17,200 of customer deposits on cans and
bottles. As of the end of the...
asked 6 minutes ago -
Please, I am evaluating an error term y = 5^(n+1)*(n+1)
and wish to find the number...
asked 15 minutes ago -
calculate the ph of the sodium after the addition of following
amounts of 0.0663M HNO3 to...
asked 19 minutes ago -
What is the path of a carbon atom during photosynthesis , light
dependent and non dependent,...
asked 22 minutes ago -
The balanced equation for the combustion of butane,
C4H10, is
2 C4H10(g) + 13
O2(g) →...
asked 23 minutes ago -
Q1 At depths of 2000 m in the sea, the pressure is about 200
times atmospheric...
asked 38 minutes ago -
A value commonly taken for the perception reaction time of
motorists is delta t equals 1.5...
asked 30 minutes ago -
For
a test of independent groups, a t test can still be conducted even
when assumptions...
asked 51 minutes ago -
What assumption are we making about ratings e.g., that ratings
are important in motivating poor performers...
asked 58 minutes ago -
You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 11 percent,...
asked 1 hour ago