Question: Question 7 ( 1 . 2 5 points ) Suppose the economy is in long - run equilibrium and consumer / business confidence decreases. In

Question 7(1.25 points)
Suppose the economy is in long-run equilibrium and consumer/business confidence
decreases. In the long-run, real GDP will and the unemployment rate will
relative to their initial level.
increase; increase
increase; decrease
not change; not change
not change; decrease
Question 7(1.25 points) Suppose the economy is in long-run equilibrium and

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

In the Fisher model, we showed that current consumption depends on the present discounted value (PV) of lifetime income. This implies that an increase in the interest rate R t will decrease the PV of...

Q:

Suppose economy is in long run equilibrium. [Only one diagram is required for this question, draw and label clearly to show all relevant points and moves, if more than one diagrams are drawn for this...

Q:

QUESTION 5 -=[25 marks] - Chapter 14 Suppose economy is in long run equilibrium. [Only one diagram is required for this question, draw and label clearly to show all relevant points and moves]....

Q:

part a Suppose the Federal Reserve conducts $10 billion in open market bond purchases and that banks target a reserve ratio of 5 percent. What will happen to money supply once banks have time to make...

Q:

Review Figure 10-7 in your textbook (on page 273 and copied above). The economy begins at long run equilibrium E3. Then there is a shift in Aggregate Demand to the left which brings the economy to...

Q:

Suppose economy is in long run equilibrium. [Only one diagram is required for this question, draw and label clearly to show all relevant points and moves] [4 marks] Use the model of aggregate demand...

Q:

Let us assume the following LM curve, where the Fed can set the real interest rate, R, through monetary policy: LM curve: R = F+ c where R is the real interest rate; r is taken to be the marginal...

Q:

(1) The Coase theorem suggests that private remedies can effectively address problems of externalities so long as: (a) no party benefits from the externality. (b) no party is a monopoly. (c) all...

Q:

SECTION C: SHORT ANSWER QUESTIONS [30 marks) Answer ALL the questions from this section. Each question is worth 10 marks. Note: Answers that utilise graphs, where appropriate, are likely to score...

Q:

1.Tectonic plates are large segments of the earth's crust that move slowly. Suppose one such plate has an average speed of3.0 cm per year. (a) What distance does it move in4 seconds at this speed?...

Q:

The expected return on Palantir is 12%. The standard deviation of Palantir is 35%. If the risk free rate is 2.5%, what is Palantir's Sharpe Ratio?

Q:

Differentiate among the terms strategic management, strategic thinking, strategic planning, and managing strategic momentum.

Q:

POP BX POP CX POP DX POP WORD [ SUM ] INT 3 SECTION DATA: DATA 1 DW 5 , 9 , 1 0 , 1 1 , 1 2 SECTION BSS: SUM DW 3 Demonstrate the following: a . Run the program by pressing the ADDR and GO button. It...

Q:

1) Why is Conflict Management an important skill for managers to have? What is the difference between functional and dysfunctional conflict? 2) What are some structural factors that lead to conflict...

Q:

What are negative messages? (Objective 1)

Q:

Welcome. You are the president of the Tri-City Industrial Foundation.You have been successful in getting Little Toy Machines, a toy manufacturer, to relocate to your community. This factory will...

Q:

What are two important advantages of using the indirect plan for bad news messages? (Objectives 2 and 3)