Question 1 refers to the following statistics for an unnamed country. 1 year ago $750 billion...
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Question 1 refers to the following statistics for an unnamed country. 1 year ago $750 billion $50,000 GDP GDP per capita Unemployment rate Labor force participation rate Inflation rate CPI 6.2% 73% 0% 100 Now $700 billion $45,000 7.3% 62% -5% 95 a. Is this economy in better shape or worse shape now than it was one year ago? (That is, is this economy in an expansion or in a recession?) Justify your answer carefully and completely, being sure to incorporate each of the six pieces of information into your assessment. If you perform a calculation as part of your answer, you must show all the steps in that calculation. b. Use Aggregate Demand-Aggregate Supply analysis to explain how the economy moved from its position one year ago to its position now. That is, what shift in Aggregate Demand or Aggregate Supply would have caused the changes in GDP, unemployment, and the price level shown in the table above? Question 1 refers to the following statistics for an unnamed country. 1 year ago $750 billion $50,000 GDP GDP per capita Unemployment rate Labor force participation rate Inflation rate CPI 6.2% 73% 0% 100 Now $700 billion $45,000 7.3% 62% -5% 95 a. Is this economy in better shape or worse shape now than it was one year ago? (That is, is this economy in an expansion or in a recession?) Justify your answer carefully and completely, being sure to incorporate each of the six pieces of information into your assessment. If you perform a calculation as part of your answer, you must show all the steps in that calculation. b. Use Aggregate Demand-Aggregate Supply analysis to explain how the economy moved from its position one year ago to its position now. That is, what shift in Aggregate Demand or Aggregate Supply would have caused the changes in GDP, unemployment, and the price level shown in the table above?
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a The economy is currently in worse shape than it was one year ago Heres a breakdown of the 6 pieces of information and how they contribute to this as... View the full answer
Related Book For
Modeling the Dynamics of Life Calculus and Probability for Life Scientists
ISBN: 978-0840064189
3rd edition
Authors: Frederick R. Adler
Posted Date:
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