Characteristics of short-term economic fluctuations

Assignment Help Microeconomics

Reference no: EM13691168

All of the following are characteristics of short-term economic fluctuations EXCEPT:

a. expansions and recessions are felt throughout the economy.

b. expansions and recessions are irregular in length and severity

c. unemployment rises during recessions

d. durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries

Reference no: EM13691168

Questions Cloud

Assume a consumer who has current-period income : Assume a consumer who has current-period income y=200, future period income y’=150, current taxes t = 40, and future taxes t’= 50, and faces a market interest rate of r=5 percent or .05. The consumer would like to consume such that c’=c*(1+r) if poss..

The expenditure multiplier for the economy : At the equilibrium level of output, the aggregate consumption level is: At the equilibrium level of output, the aggregate savings level is: The MPC and MPS for the economy is respectively: The expenditure multiplier for the economy is:

What annual irr is in prospect : A silver mine can be purchased for $1,500,000. On the basis of estimated production, an annual net income of $389,000 is foreseen for the next 15 years. After 15 years, the mine will probably be worthless. What annual IRR is in prospect?

Is it doomed to such a large cost disparity : It is estimated that a firm contemplating entering the breakfast cereal market would need to invest $ 100 million to build a minimum efficient scale production plant (or about $ 10 million annually on an amortized basis). Such a plant could produce a..

Characteristics of short-term economic fluctuations : All of the following are characteristics of short-term economic fluctuations EXCEPT:

Draw the indifference curve for this utility function : The following utility function is equal to the maximum of the amount of good x or four time the amount of good y: Draw the indifference curve for this utility function.

Stimulus package to produce the kind of gdp bump : In addition to the failure of the $830 billion "stimulus package" to produce the kind of "GDP bump" promised by proponents of the program, it also failed to deliver on the claim that it would ensure that the US unemployment rate would not reach 8%, a..

Profit maximising perfectly competitive firm : Examine the following statement to see whether it is true or false. If it is true, explain why it is true. If it is false, explain why it is false and then write the statement correctly.

Explain why the marginal revenue of a monopolist : Explain why the marginal revenue of a monopolist is below her demand curve. Please also indicate on the diagram below where the price elasticity of demand is elastic, unitary elastic and inelastic. Briefly explain why this is the case

User Account

All Pages