Recessionary gap - Study guides, Class notes & Summaries

Principles of Macroeconomics Question & Answers A budget constraint can be written as a - ANSWER: line: Budget = (Good1$ x QuantityOfGood1) + (Good2$ x QuantityOfGood2) a country's currency is overvalued if - ANSWER: the exchange rate is above equilibrium A decrease in government spending will have what effect in the short term? - ANSWER: Decreasing nominal interest rates. A decrease in what could cause a decrease in real per capita income? - ANSWER: Output per unit of input A rise in a...

the differences between the recessionary gap and the inflationary gap, what to do when solving how to close each of the gaps. Evaluating equations and determining what it does to the graphs when we adjust the gaps

Principles of Macroeconomics Final Exam Question & Answers -4. - ANSWER: If the MPC is .80, what is the value of the tax multiplier? 3. -3. 4. -4. $100 billion. - ANSWER: Suppose the economy is in equilibrium at 9.5 trillion dollars of GDP per year and a price (CPI) level of 125 and MPC is .80. If full employment GDP is at 10 trillion, according to Keynesian economics, how much should government spending increase? $100 billion. $200 billion. $500 billion. $1 trillion. $200 billion. - ANSWE...

1. The largest source of revenue for the federal government is a. sales tax receipts b. individual income tax receipts c. corporate income tax receipts d. Social Security tax receipts 2. If the government enacts a tax on Uber corporate profits, which of the following is likely to occur? a. Uber riders will pay the tax in the form of higher fares. b. Uber drivers will pay the tax in the form of lower wages c. Uber shareholders will pay the tax in the form of reduced profit d. the tax w...

This document contains macroeconomics Homework (SSE 104 Homework 6) questions and answers. It was administered to students of LaGuardia Community College in New York.

c. Government spending d. Net exports e. Price level 2. List the determinants of short-run aggregate supply in the textbox below. (Check lesson 3.02 for help.) Answer – Determinants of aggregate supply are- a. Money supply b. Price level c. Production resources d. Technology e. Input prices 3. For the question below, write an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the ...

Official unemployment rate statistics may: A) Understate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment. B) Understate the amount of unemployment by excluding part-time workers in the calculations. C) Overstate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment. D) Overstate the amount of unemployment by including part-time workers in the calculations. A)...

Democratic Government - Rule by the people, whether directly or through representatives Monarchial Government - Rule by one undivided, sovereignty, or rule of a single person (Mono); The term applies to states ruled by a Monarch, an individual ruler who functions as the head of state and who achieves this position through heredity Theocratic Government - Rule by a Deity (Theo), whether directly or through religious representatives Oligarchic Government - A form of government in which al...

This document provides a general example of the components of the aggregate supply and demand graph. It also shows an example of a recessionary and inflationary gap and how these can be fixed by using the classical approach, Keynesian economics, or supply-side economics. Each example also explains what will happen to the short-run aggregate supply and how that affects unemployment and GDP.