Number macroeconomic variables decline during recessions

Assignment Help Business Economics

Reference no: EM13740988

A number macroeconomic variables decline during recessions. One of these variables is the GDP.

a) What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in these economic variables which are to be expected.

b) Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles?

Reference no: EM13740988

Questions Cloud

Write an essay on the world civilization : World Civilization. Choose any building made before 1500 CE which either remains standing or whose construction and design are well understood--preferably in one of the civilizations we have considered in this course.

Research and understand various motivational methods : ithin your organization, upper management has decided that your department must be downsized, and it is up to each manager to begin preparing his or her team for the changes. One of the changes to be addressed involves motivational techniques. As ..

An irrigation return flow drain has sampling equipment : An irrigation return flow drain has sampling equipment that can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $14,000 to install and will have a useful life of 10 years. Annua..

What is customer relationship management : What is customer relationship management? What steps are involved? Describe an experience as a consumer, either positive or negative, and how the experience either supported or contradicted the steps involved in the customer relationship managemen..

Number macroeconomic variables decline during recessions : A number macroeconomic variables decline during recessions. One of these variables is the GDP. What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in the..

What is your single greatest supply chain threat : What is your single greatest supply chain threat. How is disaster planning coordinated for your organization.What steps do you take for local sourcing

What is a message theme : What is a message theme? What role does a message theme play in an advertising campaign? Provide an example from your personal experiences of a theme that particularly impressed you.

Explain the ethical importance of privacy : She asks that you construct a PowerPoint presentation that you will present to the board of directors with 10-12 slides that explain the ethical importance of privacy, confidentiality, and disclosure and how the HIPAA Privacy and Security Rules pr..

Compare both economies to the golden rule : Suppose two countries, A and B, with the same production function Y = K? L1?? . The value of is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Show that with price-taking firms the share of labor must be 1? Compare both e..

User Account

All Pages