The 2020 recession: was both unusually deep and unusually short. was made worse by an increase in deficit spending. started with a financial crisis. O is now referred to as the Great Recession.
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- 47. What is the difference between a recession and a depression? A depression is a particularly severe and long-lasting form of recession. A depression occurs at the peak of the business cycle, while a recession occurs during a contraction. A depression is caused by government inaction, while a recession is a natural feature of the business cycle. A depression is the opposite of a recession.Read Eye on Booms and Busts. Explain why the NBER reported that the 2008 recession began before real GDP had fallen for two successive quarters. The NBER Committee OA. anticipated the recession was going to happen because real GDP clearly peaked in 2007 OB. based its decision on peaks in the data on real personal income, real manufacturing, wholesale and retail sales, industrial production, and employment, which all peaked between November 2007 and June 2008 OC. made an error because a recession cannot occur unless real GDP falls for two successive quarters O D. saw that the business cycle trough occurred in the second quarter of 2009, so it was obvious that the recession began in 2008What is the Australian Government's monetary and fiscal policy stance in the current phase of the business cycle? Explain the rationale for this stance of macroeconomic policy. What are the implications for output and employment growth of the stance of monetary and fiscal policies? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
- What is the Australian Government's monetary and fiscal policy stance in the current phase of the business cycle? Explain the rationale for this stance of macroeconomic policy. What are the implications for output and employment growth of the stance of monetary and fiscal policies? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Topic 2. Discuss characteristics of an economy that helps itself correct from a recessionary gap.During a recession: potential GDP declines potential GDP increases real GDP declines O real GDP increases
- Explain business response towards recessionary pressures in the economy.The determinants of aggregate demand explain shifts in the aggregate demand curve. How does a change in investment spending affect aggregate demand? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The US Government is facing major budget deficit deciding between implementing fiscal and monetary policy to boost output back to potential output. In the presence of expectations, using the IS-LM model graph the effects on the US economy from a contractionary fiscal policy? What would happen if this change is perceived as permanent by investors? Graph and explain. What would happen if the government was perceived as wasteful? Graph and explain.
- How does the aggregate demand and supply model reflect a decrease in taxes? Select one: a. Consumption increases, so aggregate demand shifts right. b. Consumption increases, so aggregate supply shifts right. c. Consumption decreases, so aggregate supply shifts left. d. Consumption decreases, so aggregate demand shifts left. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The economy of Morin is shown in the figure below. Price Level 170 150 130 110 90 The Economy of Morin 70 460 480 500 520 540 560 580 600 Real GDP AD AS a. If potential GDP (LAS) is $565, and the economy is presently in equilibrium, then there is a(n) recessionary gap of $ billion. b. In order to close this gap aggregate demand must increase by $ c. If every $1 change in government spending leads to a $4 change in aggregate demand, government spending must increase by $ billion. billion. d. Suppose that initially government had a balanced budget. If government increases its spending as in part (c) and tax revenues are 0.2 of real GDP, what will be the government's real budget surplus/deficit at full-employment equilibrium? The government budget would have a deficit ◆ of $ 115 billion.I. Taiwan has an income tax rate, t1, of 28% and a Marginal Propensity to Save (MPS) of 0.4. It is in Eqm but is currently suffering from an "inflationary gap" of $350 m. (that is, Eqm Y>Y full employment, FE, aka Yn). Make the necessary calculations for the to policy that should be instituted. Provide the full name of this policy. II. Most economists believe that tariffs are not the best way to reduce the US trade-balance deficit -- the fact that US IM>US X. (Macro problems should be fixed with macro tools and tariffs are a micro tool.) Derive the identity for Y from the expenditure approach for an open economy to discuss what it means when a country is running a trade-balance deficit and whether it is an economic "good" or "bad." Then derive the twin-deficit identity and use it to explain why the US runs trade-balance deficits and what can be done, if anything, to reduce them. Make all your assumptions clear.
