Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or inflationary gap in each case below. Price index 400 300 250 N 200 150 350 100 50 200 400 AS Real GDP AD 600 800 1000 1200 1400 a. Potential GDP (LAS) is $650 then there is a(n) (Click to select) gap of $ b. Potential GDP (LAS) is $900 then there is a(n) (Click to select) ✓ gap of $ c. Potential GDP (LAS) is $950 then there is a(n)| (Click to select) gap of $[ Activ Go to Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or inflationary gap in each case below. Price index 400 300 250 N 200 150 350 100 50 200 400 AS Real GDP AD 600 800 1000 1200 1400 a. Potential GDP (LAS) is $650 then there is a(n) (Click to select) gap of $ b. Potential GDP (LAS) is $900 then there is a(n) (Click to select) ✓ gap of $ c. Potential GDP (LAS) is $950 then there is a(n)| (Click to select) gap of $[ Activ Go to
Expert Answer:
Answer rating: 100% (QA)
a Potential GDP is 650 and Real GDP is 800 So there wil... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
For the 1½ Ã 3 - 13 centrifugal pump performance curve shown in Fig. 13.34, determine the capacity that can be expected from a pump with a 12-in impeller operating against a system head...
-
Your line manager has provided you with the following information: Two different clients are facing regular monthly problems with matching the cash balance of the bank statement with the cash balance...
-
The plasma beta-carotene level (concentration of beta-carotene in the blood), in ng/ml, was measured for a sample of n = 315 individuals, and the results are shown in the histogram in Figure 2.15....
-
A long, slender bar in the shape of a right circular cone with length L and base diameter d hangs vertically under the action of its own weight (see figure). The weight of the cone is W and the...
-
Deviations from the Ideal-Gas Equation For carbon dioxide gas (CO2), the constants in the van der Waals equation are a = 0.364 j m3/mol2 and b = 4.27 X 10-5 m3/mol (a) If 1.00 mol of CO2 gas at 350 K...
-
Using the data in Table 12.5, do the following: (a) Determine the flexural strength for nonporous MgO assuming a value of 3.75 for n in Equation 12.10. (b) Compute the volume fraction porosity at...
-
Five hundred null hypotheses are tested at the = 0.05 level, and 40 of them are rejected. Assume the tests are independent, a. Assuming that all 500 null hypotheses are true, what is the probability...
-
1. Search for information about software outsourcing generally, using the search techniques described in Part D of the Systems Analysts Toolkit. 2. Visit the Bureau of Labor Statistics site at...
-
1. Lachi Company manufactures a product in 3 departments. Information related to the 2 nd department are: Work in process, beginning(75% conversion cost) - 1,400 u Units received from Department 1 -...
-
As the newest BFM in the program office, you notice a disbursement for the X-86 Aircraft landing tail hook in the accounting system. You then notice that the disbursement is not matched to an...
-
Evaluate the double integral. 8y2 dA, D is the triangular region with vertices (0, 1), (1, 2), (4, 1)
-
Explain put-call parity.
-
Explain how you can use put options to create portfolio insurance. How can you create portfolio insurance using call options?
-
How does an understanding of the accounting equation facilitate the preparation of financial reports?
-
John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also...
-
Explain how debt can be viewed as an option portfolio.
-
Evaluate the integral using any appropriate algebraic method or trigonometric identity. S dx (x+2)x+4x-12
-
What tools are available to help shoppers compare prices, features, and values and check other shoppers opinions?
-
If government purchases increased by $20 billion, other things being equal, what would be the resulting change in aggregate demand, and how much of that change would be a change in consumption, if...
-
a. What happens to the loanable funds supply and demand curves if business expectations and disposable income both increase? b. What happens to the loanable funds supply and demand curves if...
-
The Cowtown Hotel is the only first-class hotel in Fort Worth. The hotel owners hired economics advisors for advice about improving the hotels profitability. They suggested the hotel could increase...
-
The pendulum has a mass of \(7.5 \mathrm{~kg}\) with center of mass at \(G\) and has a radius of gyration about the pivot \(O\) of \(295 \mathrm{~mm}\). If the pendulum is released from rest at...
-
A metal hoop with a radius \(r=6\) in. is released from rest on the \(20^{\circ}\) incline. If the coefficients of static and kinetic friction are \(\mu_{s}=0.15\) and \(\mu_{k}=0.12\), determine the...
-
The \(\operatorname{drum} A\) is given a constant angular acceleration \(\alpha_{0}\) of \(3 \mathrm{rad} / \mathrm{s}^{2}\) and causes the 70-kg spool \(B\) to roll on the horizontal surface by...
Study smarter with the SolutionInn App