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Businesses hold inventories based on what they expect their sales to be. When aggregate________is greater than expected, inventories_______the targeted levels.
|a||supply; fall below|
|b||demand; fall below|
|c||supply; remain constant|
|d||demand; remain constant|
Economists do not agree on whether a_______business cycle exists in the United States.
Keynesian economics grew out of the_________, when inflation was no problem but output was_____.
The lesson of new classical economics for policymakers is that managing aggregate______has an effect on real_____only if change is unexpected.
Real GDP divided by the population.
|a||Per capita real GDP|
|b||Rule of 72|
|d||Per capita real GNP|
Option B. This is because when firms realize that economic agents are demanding more output, their inventories start depleting soon
Option B. There is uncertainty about the PBC theory in the US because of the political system prevailing in the nation
Option C. This is was the time of Great Depression when aggregate output started falling
Businesses hold inventories based on what they expect their sales to be. When aggregate________is greater than...
3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run? a.Real GDP will fall, the unemployment rate will rise, and the price level will rise. b.Real GDP will rise, the unemployment rate will fall, and the effect on the price level cannot be determined. c.Real GDP will rise, the unemployment rate will fall, and...
can I get help with these. I corrected 3. but want to make sure its D? as well as 5 and 6. REYNESIAN ECONOMICS b. The event that brought Keynesian economics to the forefront was the Civil War. supply shock resulting from OPEC. Great Depression collapse of communism. d. In The General Theory of Employment, Interest, and Money, Keynes disagreed with the Classical notion that: a market economy is self-regulating and always automatically moves to macroeconomic equilibrium at the full-cmployment...
VULCEA 1. When does the Keynesian theory of consumption NOT hold? a. In cross-sections. b. In the long run. c. In cyclical observations Other things being equal, the Neoclassical model of investment predicts that net investment will increase when 2. the: a. marginal product of capital falls. b. price of new capital goods rises. c. real interest rate rises. d. depreciation rate falls. 3. Which of the following is the weighted sum of the prices of a basket of domestically...
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
Question 1 Not yet answered Points out of 1.00 What is Say's Law? p Flag question Select one: O a. Y=C+S o b. 45 degree line c. Demand creates its own supply o d. Supply creates its own demand Question 2 Not yet answered Points out of 1.00 P Flag question What is the slope of the AE curve? Select one: O a. It's always 45 degrees o b. The sum of Consumption, Investment, Government Spending and Net Exports O...
1) The price of pepsi rises...what will happen to the demand for coke: a) the quantity demanded of coke will increase b) more coke will be sold at each price c) the demand curve for coke will shift to the right d) the demand curve for coke will shift to the left e) b and c 18) Which items are included in GDP?: a) sales of crack cocaine on a street corner next to Peet's coffee b) a prostitute's legal...
7. Equilibrium GDP on the demand side occurs when a. total spending equals total production, and inventories are zero. b. total spending equals total production, and inventories remain at desired levels. c. total spending exceeds total production, and inventories are rising. d. total spending is less than total production, and inventories are falling. For the next four questions refer to the following equations: C = 50+ 0.8 Y I= 100 8. The equilibrium level of GDP in this economy is:...
d. Ronald Reagan 15. We associate which of the following presidents with first advocacy of supply-side economics? a. John F. Kennedy b. Ronald Reagan c. Bill Clinton d. George W. Bush 16. During the 2008 - 2009 recession consumer confidence a. didn't fall a fell to a higher level than the low point in earlier recessions b. fell to about the same level as the low point in earlier recessions c. fell to a lower level than the low point...
Consult exhibit 2 then, answers the following questions: 1/ Using the IS-LM model, how does the spending hypothesis explain the great depression 2 2/ When relying on the IS-LM model, economists often reach the conclusion that the "Money hypothesis" is not so relevant to explain the great depression. Explain why. Exhibit 2: TABLE 11-2 What Happened During the Great Depression? Consumption Unemployment Rate (1) Real GNP 23 1930 2036 1835 1695 144.2 141.5 1396 130.4 126.1 1931 1932 1933 1934...
1. Structural unemployment is the result of A) short-term movement of workers between jobs. B) job search for first-time job seekers. C) technological change or permanent changes in industry demand. D) business cycle fluctuations. E) recurring changes in the hiring needs of certain industries. 2. The real interest rate equals A) the nominal interest rate minus the rate of unexpected inflation. B) the rate of expected inflation minus the nominal interest rate. C) the nominal interest rate minus the rate...