What is the classical economics position with respect to (a) wages, (b) prices, and (c) interest...
What is the classical economics position with respect to (a) wages, (b) prices, and (c) interest rates?
What does it mean to say that the economy is in a recessionary gap? In an inflationary gap? In long-run equilibrium?
What is the state of the labor market in (a) a recessionary gap, (b) an inflationary gap, (c) long-run equilibrium?
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What is the
classical economics position with respect to (a)
wages, (b) prices, and (c) interest...
9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates?...
9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates? What are the three states of the economy in relating the real GDP to natural real GDP? In a recessionary gap, is there a surplus or a shortage of production? What does that imply about the labor market and how wages may change? Understand the differences between a recessionary gap, inflationary gap, and long run equilibrium. How is the physical production possibilities frontier (PPF)...
A)Classical theory at its crux is the one belief that prices, wages and interest-rates are at equilibrium in the long ru...
A)Classical theory at its crux is the one belief that prices, wages and interest-rates are at equilibrium in the long run, all on their own. How come they’re all lumped together in this way? Answer: B) Explain which philosophy is supply-sided, and which one is demand-sided. Answer:
Which of the following is consistent with the classical position on wages and prices? a. Wages...
Which of the following is consistent with the classical position on wages and prices? a. Wages and prices are inflexible in the downward direction, but not in the upward direction. b. Prices are inflexible in the downward direction, but wages are flexible. c. Wages and prices are flexible. d. Wages are inflexible in the downward direction, but prices are flexible.
According to the Classical model, what happens when there is a recessionary GDP gap? (check all...
According to the Classical model, what happens when there is a recessionary GDP gap? (check all that apply) a.The economy self-adjusts back to potential GDP b.The economy stays in recession unless the government acts to increase aggregate demand c.An excess supply of labor causes wage rates to fall d.The price level rises e.An excess demand for labor causes wage rates to rise What are the implications of wages being "sticky downward"? (check all that apply) a.Employers will lay off workers...
[8] In Keynesian economics the most important factor determining whether the level of economic activity is...
[8] In Keynesian economics the most important factor determining whether the level of economic activity is growing or shrinking is: A) the multiplier effect. B) government expenditure and tax policies. C) the behavior of nonincome-determined spending. D) the relationship between leakages from and injections into the spending stream. [9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is: A) less than the equilibrium level of output, and will increase....
6. Demonstrate the decrease in wealth using the closed AD-AS model, ceteris paribus, in both the...
6. Demonstrate the decrease in wealth using the closed AD-AS model, ceteris paribus, in both the short-run and long-run. Assumptions: (1) start in long-run equilibrium; (2) prices are sticky; (3) nominal wages are fixed in the short-run. [Note: this is the self-correcting version.] [Sub-questions 6-10 are connected.] In the short-run, _______ shifts _______. A. the aggregate demand curve; leftward B. the aggregate demand curve; rightward C. the short-run aggregate supply curve; leftward D. the short-run aggregate supply curve; rightward E....
Econ hw please help thank you! NAN Print Last Name, First Name 6. In a self-regulating...
Econ hw please help thank you!
NAN Print Last Name, First Name 6. In a self-regulating economy, inflationary gaps are automatically eliminated in the le run by: a. decreases in wage rates that cause short-run aggregate supply to shift rightwo decreases in wage rates that cause short-run aggregate supply to shift left word increases in wage rates that cause short-run aggregate supply to shift rightward increases in wage rates that cause short-run aggregate supply to shift leftward Assume the economy...
a) Prices and output increase. b) Prices and output decrease. c) Prices increase and output decreases....
a) Prices and output increase. b) Prices and output decrease. c) Prices increase and output decreases. d) Prices decrease and output increases 18. Assume that the Canadian economy is experiencing a deflationary (recessionary) gap and neither the Government nor the Bank of Canada are not planning corrective measures (policies). What will happen to Canadian prices and output (real GDP) as the economy slowly regains macroeconomic equilibrium? a) Prices and output will increase. b) Prices and output will decrease. c) Prices...
6. When the Federal Reserve Bank changes the money supply and interest erve Bank changes the money supply and inter...
6. When the Federal Reserve Bank changes the money supply and interest erve Bank changes the money supply and interest rates to affect the economy, this is called and it's a policy. a fiscal policy, Keynesian b. growth policy: Classical c. monetary policy: Classical d. monetary policy, Keynesian 7. An example of a long run Classical policy to increase potential GDP is a. the Federal Reserve implementing monetary policy to get the economy out of recession b. the government subsidizing...
7 Consider a typical aggregate demand and supply curve of an economy operating at its long-run...
7 Consider a typical aggregate demand and supply curve of an economy operating at its long-run equilibrium. Express the condition for long-run equilibrium and graphically show the long- run equilibrium of this economy in an AD-AS diagram. Explain and graphically show how a positive AD shock affects the short-run equilibrium of this economy. How do the price level and rGDP change in the short term as a result? a. b. Does the positive AD shock result in a recessionary gap...
Econ hw please help thank you!
NAN Print Last Name, First Name 6. In a self-regulating economy, inflationary gaps are automatically eliminated in the le run by: a. decreases in wage rates that cause short-run aggregate supply to shift rightwo decreases in wage rates that cause short-run aggregate supply to shift left word increases in wage rates that cause short-run aggregate supply to shift rightward increases in wage rates that cause short-run aggregate supply to shift leftward Assume the economy...
a) Prices and output increase. b) Prices and output decrease. c) Prices increase and output decreases. d) Prices decrease and output increases 18. Assume that the Canadian economy is experiencing a deflationary (recessionary) gap and neither the Government nor the Bank of Canada are not planning corrective measures (policies). What will happen to Canadian prices and output (real GDP) as the economy slowly regains macroeconomic equilibrium? a) Prices and output will increase. b) Prices and output will decrease. c) Prices...
6. When the Federal Reserve Bank changes the money supply and interest erve Bank changes the money supply and interest rates to affect the economy, this is called and it's a policy. a fiscal policy, Keynesian b. growth policy: Classical c. monetary policy: Classical d. monetary policy, Keynesian 7. An example of a long run Classical policy to increase potential GDP is a. the Federal Reserve implementing monetary policy to get the economy out of recession b. the government subsidizing...
7 Consider a typical aggregate demand and supply curve of an economy operating at its long-run equilibrium. Express the condition for long-run equilibrium and graphically show the long- run equilibrium of this economy in an AD-AS diagram. Explain and graphically show how a positive AD shock affects the short-run equilibrium of this economy. How do the price level and rGDP change in the short term as a result? a. b. Does the positive AD shock result in a recessionary gap...
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