Homework Answers
Which of the following is not correct ?
Answer - (C) The fed makes loans to any qualified business that requests one
Reason - The Fed approves loans only to other commercial banks, rather than any business.
Question 56
Answer - (C) An inflationary gap occurs when potential output exceeds actual output
Reason - It happens when actual GDP exceeds potential GDP.
Question 57
Answer - (C)Full employment simply means that there is no cyclical unemployment
Reason - Full employment is the case where there is no cyclical unemployment. Hence , there is enough demand for anyone who is seeking an employment to have a job.
Add Answer to:
Which of the following statements is not correct? A. The Fed was created in 1913 to...
When easy money policy is used persistently by the Fed, it eventually results in: reduced unemployment....
When easy money policy is used persistently by the Fed, it eventually results in: reduced unemployment. excessive savings. high inflation. the exhaustion of excess reserves. In 2016, Greece faced another set of hurdles in its ongoing saga of managing its debt. In order for Greece to maintain its obligations under the IMF and European Central Bank bailout packages, it must continue to cut government spending, particularly pensions that have put a strain on the budget. Greece's leaders, meanwhile, have argued...
Check my answers please ?? MULTIPLE CHOICE. Choose the one alternative that best completes the statement...
Check my answers please ??
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) The use of government taxes and spending to alter economic outcomes is known as A) Incomes policy Q) Monetary policy B) Foreign trade policy. D) Fiscal policy A- 2) 2) If full-employment output exceeds equilibrium output, greater deficit spending will result A) Smaller recessionary gap C) Smaller inflationary gap. B) Larger recessionary gap. D) None of the choices...
Fill in the blanks to make the following statements correct:(options are in the brackets) Beginning with...
Fill in the blanks to make the following statements correct:(options are in the brackets) Beginning with output equal to potential, suppose there is a drop in business confidence and investment falls. This is a____ (supply/demand) shock to the Canadian economy, which shifts the__ (AD/AS) curve to the___ (right/left) and creates ____ (a recessionary/ an inflationary) gap. Units costs will start to___(rise/fall) and the__ (AD/AS) curve will shift ____ (rightward/leftward) . Long-run equilibrium will (slowly) be restored at ___ (actual/potential)output and...
Unit 3: Aggregate Demand, Aggregate Supply, and Fiscal Policy AD, AS, and LRAS Short Run vs....
Unit 3: Aggregate Demand, Aggregate Supply, and Fiscal Policy AD, AS, and LRAS Short Run vs. Long Run Aggregate Supply Draw the economy at full employment 1. In the short run, wages and resource prices will as price levels increase 2. In the long run, wages and resource prices will as price levels increase Shifters of AD and AS Shifters of Aggregate Demand Shifters of Aggregate Supply imi Recessionary Gap Draw an economy in a recession Inflationary Gap Draw an...
2. The following table has aggregate demand and aggregate supply for a hypothetical economy. The MPC...
2. The following table has aggregate demand and aggregate supply for a hypothetical economy. The MPC is 0.8. Amount of real domestic output demanded (billions) Price level (price index) Amount of real domestic output supplied (in billions) $300 $300 $700 400 250 600 500 200 500 600 150 400 700 100 300 In the short run, what are the economic equilibrium price level and the equilibrium real output? If the GDP of this country is at a natural rate of...
24) Great Recession and Great Depression were similar except Stock Market crash High U...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans by banks Role of the Fed 25) The various kinds of automatic stabilizers are: Increased Defense spending All of them Expansionary Monetary Policy Taxes and Transfer payments 29) Internet Revolution in the 1990’s was an example of Negative Supply shock Positive demand shock Negative Demand shock Positive Supply shock 33) To close a recessionary gap, the Fed would increase the money supply increase interest...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans by banks Role of the Fed 25) The various kinds of automatic stabilizers are: Increased Defense spending All of them Expansionary Monetary Policy Taxes and Transfer payments 29) Internet Revolution in the 1990’s was an example of Negative Supply shock Positive demand shock Negative Demand shock Positive Supply shock 33) To close a recessionary gap, the Fed would increase the money supply increase interest...
Can Fed target jobless rate? Bernanke hints at new policy With little notice, Bernanke seemed to...
Can Fed target jobless rate? Bernanke hints at new policy With little notice, Bernanke seemed to buck conventional wisdom and suggest that the Fed can, and should, try to influence the long-term unemployment rate. Source: CNBC, October 10, 2011 Explain whether trying to influence the long-term unemployment rate is consistent with the Fed's monetary policy objectives. This description of the Fed's focus ______ consistent with its monetary policy objectives because ______. A. is not; focusing on the output gap leads...
6. (Problem 6) An economy is facing the inflationary gap shown in the accompanying diagram. Aggregate...
6. (Problem 6) An economy is facing the inflationary gap shown in the accompanying diagram. Aggregate price level LRAS SRAS Real GDP Potential —YpY output To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and the aggregate price level change as monetary policy closes the inflationary gap? The central bank can use contractionary monetary policy. The interest rate will rise, which would encourage a...
Question 19 (2.8 points) If GDP>LRAS, it is called which of the following? O natural rate...
Question 19 (2.8 points) If GDP>LRAS, it is called which of the following? O natural rate of unemployment full employment O recessionary gap expansionary gap Question 20 (2.8 points) The use of Government spending and taxes to affect the economy is called O classical economics O progressive income tax fiscal policy stagflation
Check my answers please ??
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) The use of government taxes and spending to alter economic outcomes is known as A) Incomes policy Q) Monetary policy B) Foreign trade policy. D) Fiscal policy A- 2) 2) If full-employment output exceeds equilibrium output, greater deficit spending will result A) Smaller recessionary gap C) Smaller inflationary gap. B) Larger recessionary gap. D) None of the choices...
Unit 3: Aggregate Demand, Aggregate Supply, and Fiscal Policy AD, AS, and LRAS Short Run vs. Long Run Aggregate Supply Draw the economy at full employment 1. In the short run, wages and resource prices will as price levels increase 2. In the long run, wages and resource prices will as price levels increase Shifters of AD and AS Shifters of Aggregate Demand Shifters of Aggregate Supply imi Recessionary Gap Draw an economy in a recession Inflationary Gap Draw an...
6. (Problem 6) An economy is facing the inflationary gap shown in the accompanying diagram. Aggregate price level LRAS SRAS Real GDP Potential —YpY output To eliminate the gap, should the central bank use expansionary or contractionary monetary policy? How will the interest rate, investment spending, consumer spending, real GDP, and the aggregate price level change as monetary policy closes the inflationary gap? The central bank can use contractionary monetary policy. The interest rate will rise, which would encourage a...
Question 19 (2.8 points) If GDP>LRAS, it is called which of the following? O natural rate of unemployment full employment O recessionary gap expansionary gap Question 20 (2.8 points) The use of Government spending and taxes to affect the economy is called O classical economics O progressive income tax fiscal policy stagflation
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