Refer to the figure above. All of the following events can cause a movement from Point E to Point D EXCEPT an increase in nominal aggregate output. a decrease in the interest rate. an increase in real output and income.
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- Cosider the following data on U.S GDP:a.What was the growth rate of nominal GDP between 1994 to 2014?b.What was the growth rate of the GDPdeflator between 1994 to 2014?c.What was the real GDP in 1994 measured in 2009 prices?d.What was the real GDP in 2014measured in 2009 prices?e.What was the growth rate of the GDP between 1994 to 2014?f.Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP?Explain.Economics How are aggregate output and the real interest rate determined in compettive egulbum? OA The aggregate oulput can be found by multiplying current employment by current real wage at the intesection of the current labour supply and demand curves, given the raal inderest rate. and ssubtracting the level of investment in the economy OB. Cument aggregata output and the real interest rate are determined by the intersection of the output supoly and demand ouves OC. Cunent aggregate output can be found by finding current employment from the intersection of the current labour supply and domand ourves given the real interest rate and aocounting tor total tactor productivity OD. The real interest rate is determined by the slope of the output supply curve at a given level of aggregate outputIn early 2017, policymakers at the Federal Reserve forecast that real GDP during 2017 would increase faster than potential GDP and that the inflation rate for the year would be about 1.9 percent. Source: Federal Open Market Committee, "Advance Release of Table 1 of the Summary of Economic Projections to be Released with the FOMC Minutes," March15, 2017. Fill in the missing values in the table with estimates that are consistent with these forecasts. Assume that the growth rate for real GDP between 2016 and 2017 is 0.32 percentage points higher than the percentage change in potential output between those years (rounded to two decimal places). 2016 2017 Real GDP $16.7 trillion $nothing trillion Potential GDP $16.9 trillion $17.1 trillion GDP Deflator 111.5 nothing (Enter your responses rounded to one decimal place.)
- An economic recession means that _______. a. GDP is critically high b. Output and employment is down c. Employment is increasing d. Output is increasing1. Key facts about economic fluctuations The following graph approximates business cycles in the United States from the first quarter of 1953 to the third quarter of 1957. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDPP). 2700 200 2000 W 2400 2300 1950 1954 1965 1956 1957 YEAR Source: "Current dollar and Real GDP" Bureau of Economics Analysis, last modihed May 1, 13, accessed May 15, 13, http://www.bea.gov/national/xds/gdplev.ds. Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1953, is known as True or False: Small ups and downs in real GDP follow a consistent, predictable pattern. O frue O False Which of the following probably occurred as the U.S. economy experienced declining real GDP in 19537 Check all that apply ORetail sales declined. O Home sales increased. O Industrial production increased. O Consumer…MACROECONOMICS Topic: Multiplier Investment ProblemCost of bldg.. =5MGross Revenue = 9.5 MOperating expense = 4MNominal interest rate = 12%Ongoing inflation rate = 8%a) Determine the real interest rateb) Determine the interest costc) How much will be added to the firm's profit?
- 1. Key facts about economic fluctuations The graph included below approximates United States business cycles between quarter one of 1947 and quarter three of 1951. The shaded region denotes periods of six or more consecutive months of declining real gross domestic product (real GDP). W 1048 1040 1000 YEAR REAL GDP (Billions of dollars) 2170 2070 1970 1870 1770 1047 1001 Source: "Current-dollar and Real GOR" Bureau of Economics Analysis. last modified May 1, 13. accessed May 15. 13. http://www.bea.gov/national/xl/gdplev.. Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to asWe would expect falling nominal GDP if net exports increased. Othere is disinflation. O production remains constant and prices decrease. O production remains constant and prices rise. O production costs rose.Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150 B SRAS shifts to the left (C) the price level is now less than 150 (D) SRAS shifts to the right
- Question 16 The economy is said to face a problem of "Infiation" when: O There is an increase in the prices of some goods and services. There is an increase in the consumer price index (CPI) in a particular year. O There is an increase in the consumer price index (CPI) in a successive number of years. There is an inorease in exchange rate of national currency against foreign currencies.Why is the GDP deflator not an accurate measure of inflation as it impacts a household?Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What Impact would that have on GDP, unemployment, and inflation?