For each of the following, diagnose which type of economic ahock has hit the economy: a....

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For each of the following, diagnose which type of economic ahock has hit the economy: a. On your drive to campus you hear a radio report describing how the recession appears to have ended and while output remains less than potential, the output gap has risen from -7% to -5%. The host is interviewing an economist who states, "The change in GDP isn't terribly surprising, as the Federal Reserve continues to cut the real interest rate." This scenario illustrates a shock. b. The latest inflation report indicates an uncxpected uptick in inflation, even though output remains below potential. This scenario illustrates a shock. c. The real interest rate has been stable over the past few quarters, yet output has grown rapidly, leading to a more positive shock. output gap. This scenario illustrates a Question 7 ot 17 The Fed Model-End of Chapter Problem For each of the following, diagnose which type of economic shock has hit the economy: a. On your drive to campus you hear a radio report describing how the recession appears to have ended and while output remains less than potential, the output gap has risen from -7% to -5%. The host is interviewing an cconomist who states, "The change in GDP isn't terribly surprising, as the Federal Reserve continues to cut the real interest rate" This scenario illustrates a shock. supply spending b. The latest financial indicates an unexpected uptick in inflation, even though output remains below potential. This scenario illustraies a shock. financial supply spending le over the past few quarters, yet output has grown rapidly, leading to a more positive c. The real interest ra output gap. This scenario usrases a shock financial spending supply For each of the following, diagnose which type of economic ahock has hit the economy: a. On your drive to campus you hear a radio report describing how the recession appears to have ended and while output remains less than potential, the output gap has risen from -7% to -5%. The host is interviewing an economist who states, "The change in GDP isn't terribly surprising, as the Federal Reserve continues to cut the real interest rate." This scenario illustrates a shock. b. The latest inflation report indicates an uncxpected uptick in inflation, even though output remains below potential. This scenario illustrates a shock. c. The real interest rate has been stable over the past few quarters, yet output has grown rapidly, leading to a more positive shock. output gap. This scenario illustrates a Question 7 ot 17 The Fed Model-End of Chapter Problem For each of the following, diagnose which type of economic shock has hit the economy: a. On your drive to campus you hear a radio report describing how the recession appears to have ended and while output remains less than potential, the output gap has risen from -7% to -5%. The host is interviewing an cconomist who states, "The change in GDP isn't terribly surprising, as the Federal Reserve continues to cut the real interest rate" This scenario illustrates a shock. supply spending b. The latest financial indicates an unexpected uptick in inflation, even though output remains below potential. This scenario illustraies a shock. financial supply spending le over the past few quarters, yet output has grown rapidly, leading to a more positive c. The real interest ra output gap. This scenario usrases a shock financial spending supply

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a Option A is a financial shock here the demand in ... View the full answer