Inflationary gap - Study guides, Class notes & Summaries

Ivy Software MBA Prepworks Fundamentals of Economics / Ivy Software MBA Prepworks Fundamentals of Economics questions with correct answers Assume that the economy is currently at potential real GDP. Which of the following would put the economy in an inflationary gap? A) Temporary increase in wages B) greater stock market wealth C) higher business taxes D) decrease in income abroad - ANSWER-greater stock market wealth If an economy is producing below its potential real GDP, then it i...

Which of the following problems of timing may arise in connection with fiscal policy correct answers Operational lags; administrative lags, recognition lags What provides the information needed to assess discretionary policy and determine whether it is expansionary, contractionary, or neutral? correct answers Cyclically adjusted budgets The crowding-out effect is a potential flaw or result of expansionary ___ policy. correct answers fiscal List in order the steps for government to follo...

Ivy Software MBA Prepworks Fundamentals of Economics / Ivy Software MBA Prepworks Fundamentals of Economics questions with correct answers Assume that the economy is currently at potential real GDP. Which of the following would put the economy in an inflationary gap? A) Temporary increase in wages B) greater stock market wealth C) higher business taxes D) decrease in income abroad - ANSWER-greater stock market wealth If an economy is producing below its potential real GDP, then it i...

Ivy Software MBA Prepworks Fundamentals of Economics / Ivy Software MBA Prepworks Fundamentals of Economics questions with correct answers Assume that the economy is currently at potential real GDP. Which of the following would put the economy in an inflationary gap? A) Temporary increase in wages B) greater stock market wealth C) higher business taxes D) decrease in income abroad - ANSWER-greater stock market wealth If an economy is producing below its potential real GDP, the...

When consumer confidence falls in an economy, _____ will decrease which is going to be _____ by the spending multiplier. correct answers spending; magnified What does the "paradox of thrift" say? correct answers An economy that saves too much can end up with lower savings. How does the spending multiplier compare between a $1,000 increase in government spending and a $1,000 decrease in taxes collected? correct answers An increase in government spending has a greater multiplier than an eq...

AP WORLD HISTORY _ Unit 5: International Trade and Foreign Exchange Problem Set #5 1. ( ____/30) Define the term and explain a situation that demonstrates the ‘real world’ application of each of the following. Make sure your example clearly demonstrates your understanding of each concept. a. Trade Deficit and Trade Surplus ( ____/10) b. Current Account and Financial Account ( ____/10) c. Appreciation and Depreciation ( ____/10) 2. ( ____/50) The Balance of Payments (BOP) measures all interna...

GVPT 200 final MC questions and answers with certified solutions 1. International norms are __________. A) effective because they become irregular over time B) most effective when different states hold different expectations of what is normal C) not effective in shaping state behavior D) sometimes institutionalized through intergovernmental organizations D) sometimes institutionalized through intergovernmental organizations 2. The UN's peacekeeping forces are __________. A) a standing arm...

2.7 Vocabulary & Notes | AP Macroeconomics Questions And Answers Positive Output Gap/Inflationary Gap occurs when actual output is more than fullcapacity output; demand is very high and, to meet that demand, factories and workers operate far above their most efficient capacity A _________ is a consecutive 6 month period of decline in real GDP. recession Recessions that are very intense and/or last for a year or longer are called a ___________. depression During the peak... ...unemplo...

Principles of Economics Exam Questions and Answers What is frictional unemployment? - ANSWER-Between jobs, moving towards a better job. (Module 7) What is structural unempoyment? - ANSWER-Job eliminated, accumulated experience is no longer valued in the labor market. What is cyclical unemployment? - ANSWER-Laid off due to a recession How do you calculate the unemployment rate? - ANSWER-(# of unemployed/labor force) x 100 How do you calculate the labor force participation rate? - ANSWER-(...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...