a) true as beyond the potential GDP the economy is in the inflationary gap, increasing the demand by reducing the taxes will not have much effect on increasing the demand in the market.
b) False, the prices, wages and other factor are equally sticky in there way up and down. it will take the same time.
true/ false/ unceirtan questions (3) If current real GDP is above potential real GDP, a reduction in income taxes...
(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...
If the Bank of Canada were to miscalculate the NAIRU (non-accelerating inflation rate of unemployment) as being 10% when in fact it was 12%, it might cause O A. consumers to spend more than they intended, because the Bank of Canada misled them about the unemployment rate. O B. a reduction in the natural rate of unemployment, because it would be allowing inflation to occur. O c. a one-time reduction in unemployment, because of a one-time increase in the money...
1. Equilibrium GDP can operate at, below, or above full employment GDP. True/False 2. Imports have the same effect on the current size of GDP as A) exports B) investment C) consumption D) savings 3. With an MPC of 0.75, a $10 billion decrease in taxes will decrease equilibrium GDP by $30 billion. True/False 4. If equilibrium GDP exceeds full employment GDP, a recessionary gap exists. True/False 5. The economy below would be characterized as a domestic output AE, closed...
Questions 1-5 Beta's National Accounts in 2019 1. Net Domestic Product 2. Exports 3. Personal income taxes 4. Government expenditures 5. Consumption expenditures 6. Gross investment 7. Imports 8. Corporate profits before taxes 9. Personal disposable Income 10. Net Investment 11. Capital stock on January 1, 2019 Billions of $ 2250 100 300 600 1400 250 75 350 1900 225 30000 1. GDP was a) $2175 billion b) $2275 C) $2300 d) $2325. Depreciation was a) So billion b) $25...
1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph. What is the current actual u - rate for the US economy as of Sep 2019 Data for 2019 ? Is this unemploymen t rate bel ow or above or equal to u - rate at full employment (usually called natural rate of unemployment or NAIRU)? 2) A) Why would you expect the inflation...
Tell me wether each statement is true or false: 1.Factors that cause the rivalry among competing sellers to be weak include low buyer switching costs and rival sellers that are relatively equal is size and capability. 2.High labor productivity (especially if the production process has high labor content) is a good example of a manufacturing-related key success factor. 3.Whether the company’s sales are growing faster, slower, or about the same pace as the industry as a whole, thus resulting in...
Question 50 (1 point) A(n) _____ in oil prices and a(n) _____ in taxes will shift short-run aggregate supply to the left. Question 50 options: a) decrease; increase b) decrease; decrease c) increase; decrease d) increase; increase Question 51 (1 point) Which of the following events will shift the aggregate demand curve to the right? Question 51 options: a) an increase in household debt b) a catastrophic hurricane hitting the northeastern United States c) a decrease in taxes d) a...
Read this article and write a 2-3 page summary of what you learned on GDP US economic growth slowed to 0.7% in 4Q of 2015 WASHINGTON >> The U.S. economy’s growth slowed sharply in the final three months of 2015 to a 0.7 percent annual rate. Consumers reduced spending, businesses cut back on investment and global problems trimmed exports. The slowdown could renew doubts about the durability of the 6½-year-old economic expansion, though most economists expect growth to rebound in...
All of these are True or False question, please find full correct and precise answers with Gregory and Stuart, Comparing Economic System in the Twenty-First Century, 7th edition. 46. Japan’s Ministry of international trade and industry was the pioneer of Asian industrial policy, which tends to be much more comprehensive than in the U.S. 47. The administrative-command economy was the mechanism for resource allocation in the former USSR between 1929 and the word war 2, but was abandoned in 1946....
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SPECIAL ARTICLES tole of Monetary Policy C Rangarajan What should be the objectives of monetary policy? Does the objective of price stability conflict with the goal of achieving...