Which of the following is an example of a positive feedback loop?Group of answer choices a....
Which of the following is an example of a positive feedback loop?Group of answer choices
a. When consumption spending decreases, firms increase investment spending to keep GDP from falling.
b. The Government increases its spending when the economy is in a recession.
c Real GDP growth reaches its peak in the business cycle and "animal spirits" cause growth rates to decrease.
d.Firms decrease investment when real GDP growth is negative.
Homework Answers
An example of a positive feedback loop among the given choices is
b. The government increases its spending when the economy is in recession.
Because during recession period, when the economy needs a boost the government increases its expenditures or reduces taxes so that the aggregate demand increases and hence there is also an increase in production and employment level. Therefore, this is an example of positive feedback loop.
The rest of the options don’t fit for the example of positive feedback loop as because in
(a) If consumption spending will decrease then the GDP will fall. GDP is a composition of Consumption, Investment, Govt. Expenditure and (Export-Import).
(c) Is not an example of positive feedback loop. Because it is not a positive effect that the “animal spirits”lead to
(d) Decrease in investment too can’t be an example of positive feedback loop. Because this is leading to a negative GDP growth.
Add Answer to:
Which of the following is an example of a positive feedback
loop?Group of answer choices
a....
If the government increases income taxes, Group of answer choices government spending declines and real output...
If the government increases income taxes, Group of answer choices government spending declines and real output increases consumption increases and real output increases real output remains the same consumption decreases and real output increases Economic expansions in Europe and China would cause Group of answer choices the U.S. price level and real GDP to remain unchanged. the U.S. price level and real GDP to rise. the U.S. price level to fall and real GDP to rise. the U.S. price level...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer...
(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer choices An increase in domestic prices relative to foreign prices A decrease in the interest rate A decrease in real wealth An increase in income taxes A decrease in government purchases of goods and services (2) If the current unemployment rate is 5 percent and the natural unemployment rate is 6 percent, then the economy is Group of answer choices producing a level of...
Which of the following statements is positive? Group of answer choices When the Federal Reserve increases...
Which of the following statements is positive? Group of answer choices When the Federal Reserve increases the money supply, interest rates decrease. Large budget deficits should be avoided. A tax cut that benefits low-income households is acceptable. Higher taxes are needed to support education. The standard of living in an economy is best measured by: Group of answer choices output per person. average labor productivity. total output. the inflation rate. If average labor productivity increases while population and the number...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases real GDP by $20 million. Group of answer choices 0.20 0.25 2 5 4 (2) A major benefit of automatic stabilizers is that they: Group of answer choices guarantee a balanced budget over the course of the business cycle. have a tendency to reduce the national debt. moderate the effect of fluctuations in the business cycle. require legislative review by Congress before they can...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the short-run nor long-run aggregate supply changes. short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes. the equilibrium level of real GDP is greater than potential GDP. the equilibrium level of real GDP is less than potential GDP. 2. Which of the following shifts the aggregate demand curve rightward? Group of answer choices a decrease in consumption an increase in investment...
10.) Which of the following is an example of an automatic stabilizer? A. The reduction in...
10.) Which of the following is an example of an automatic stabilizer? A. The reduction in the money supply that occurs as banks become less willing to make loans during a recession B. The reduction in real wages that occurs as the economy goes into a recession C. The increase in government spending that occurs as the result of new spending bills passed by Congress D. The rise in tax revenue that occurs as a result of growth in real...
EXERCISE 1:TRUE OR FALSE 1. If the dollar appreciates relative to foreign currencies, we would expect...
EXERCISE 1:TRUE OR FALSE 1. If the dollar appreciates relative to foreign currencies, we would expect a country's net exports to fall. If government decreases its purchases by $20 billion and the MPC is 0.8, equilibrium GDP will decrease by $100 billion. When a private closed economy is at equilibrium, then (GDP-C) is equal to planned investment. If planned investment is larger than saving, then real GDP will increase as the economy adjusts toward equilibrium. 5. Positive net exports increase...
1.The purchasing power of the $20 bill increases over time due to inflation. Group of answer...
1.The purchasing power of the $20 bill increases over time due to inflation. Group of answer choices True False 2.The consumer price index increased from 120 to 132. If you received a raise equal to 10% during this time period then your real income has decreased. Group of answer choices True False 3.Productivity is measured by calculating the growth rate of real GDP. Group of answer choices True False 4.The labor force is made up of all people who are...
Question 13 (Ch21&22) An increase in (i) tax benefits for saving; (ii) the desire of households...
Question 13 (Ch21&22) An increase in (i) tax benefits for saving; (ii) the desire of households to consume today; (iii) corporate taxes; (iv) expected future profits; and (v) the government's budget deficit will cause effects shown in the following graphs respectively. SS SS a. b. A) b, a, b, c, and a B) c, a, d, c, and a C) b, a, d, d, and a D) b, a, d, c, and a Question 14 (Ch21&22) What kind of situations...
U PLS (SLO/EO: 11a) If the U.S. dollar depreciates relative to currencies in other countries, then...
U PLS (SLO/EO: 11a) If the U.S. dollar depreciates relative to currencies in other countries, then U.S. imports will and exports will increase; increase decrease, decrease decrease; increase increase; decrease Question 30 3 pts (SLO/EO: 6,12) Long recessions often follow banking crises because: banking crises may cause a surplus of credit, so that interest rates fall to levels so low that investors earn very little in interest income. the vicious cycle of deleveraging that follows leads to overpriced assets. consumer...
EXERCISE 1:TRUE OR FALSE 1. If the dollar appreciates relative to foreign currencies, we would expect a country's net exports to fall. If government decreases its purchases by $20 billion and the MPC is 0.8, equilibrium GDP will decrease by $100 billion. When a private closed economy is at equilibrium, then (GDP-C) is equal to planned investment. If planned investment is larger than saving, then real GDP will increase as the economy adjusts toward equilibrium. 5. Positive net exports increase...
Question 13 (Ch21&22) An increase in (i) tax benefits for saving; (ii) the desire of households to consume today; (iii) corporate taxes; (iv) expected future profits; and (v) the government's budget deficit will cause effects shown in the following graphs respectively. SS SS a. b. A) b, a, b, c, and a B) c, a, d, c, and a C) b, a, d, d, and a D) b, a, d, c, and a Question 14 (Ch21&22) What kind of situations...
U PLS (SLO/EO: 11a) If the U.S. dollar depreciates relative to currencies in other countries, then U.S. imports will and exports will increase; increase decrease, decrease decrease; increase increase; decrease Question 30 3 pts (SLO/EO: 6,12) Long recessions often follow banking crises because: banking crises may cause a surplus of credit, so that interest rates fall to levels so low that investors earn very little in interest income. the vicious cycle of deleveraging that follows leads to overpriced assets. consumer...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago