Reference no: EM131386235
1-A recessionary gap occurs when
A. All of these are true.
B. actual real GDP is above potential real GDP.
C. the long run equilibrium is less than the short run equilibrium.
D. the current output level is below the full employment level of production.
2-Crowding out refers to the
A.possibility that investment and consumption may decrease if government borrowing causes an increase in interest rates.
B.higher rate of unemployment caused by a minimum wage.
C.decrease in production of capital goods required if a productively efficient economy wants more consumption goods.
D.All of these.
3-In the aggregate supply and demand? model, short run equilibrium is
A.at the intersection between long run aggregate supply and aggregate demand.
B.when actual real GDP equals potential real GDP.
C.at the intersection between short run aggregate supply and aggregate demand.
D.when potential real GDP equals the full employment level of output.
|
Non-accelerating inflation rate of unemployment
: Explain and discuss the difference between the original Phillips curve and the expectations- augmented Philips curve. Why did the original Phillips curve relation break down in the early 1970s? What are the policy implications of the non-accelerating..
|
|
The market will transition to long run equilibrium
: If there is an inflationary? gap, the market will transition to long run equilibrium by. If the price level rises and the money wage rate remains? constant, the quantity of real GDP supplied? ______ and there is a movement up along the? ______ aggreg..
|
|
Shift the aggregate demand curve to the left
: Which would NOT shift the aggregate demand curve to the? left If there is an inflationary gap, the market will transition to long run equilibrium by. If the price level rises and the money wage rate remains constant, the quantity of real GDP supplied..
|
|
Explain why china has been so successful so far
: Describe state capitalism in China and explain what policies China uses for its economy. Explain why China has been so successful so far. Explain what the potential challenges for continued success in China might be.
|
|
Recessionary gap occurs when
: A recessionary gap occurs when. Crowding out refers to the. In the aggregate supply and demand? model, short run equilibrium is
|
|
Economic growth is shown in aggregate supply
: The business cycle can be shown in the aggregate supply? / aggregate demand model by. Problems related to fiscal policy may include. Economic growth is shown in the aggregate supply? / aggregate demand model by
|
|
Currency from checking accounts affect money stock
: How does the withdrawal of currency from checking accounts affect the money stock? How does it affect a bank’s reserves? How does this affect the bank’s ability to make loans? What effect might this withdrawal consequently have on the money stock?
|
|
Expansionary monetary policy would consist
: Expansionary monetary policy would consist of. Which would shift the short run aggregate supply curve to the? left? Which would NOT shift the long run aggregate supply curve? outwards? In the aggregate supply and demand? model, in long run equilibriu..
|
|
The aggregate supply and aggregate demand model
: Which is true in the aggregate supply / aggregate demand model? Contractionary fiscal policy would consist of. An inflationary gap occurs when.
|