In 2014, a devastating typhoon hit the Philippines, destroying roads and buildings, and killing thousands of people. How will this natural disaster impact the U.S. economy in the short run? Choose one: O A real GDP will decrease; price level will decrease; unemployment will decrease O B. real GDP will increase; price level will increase; unemployment will decrease OC. real GDP will decrease; price level will decrease; unemployment will increase O D. real GDP will increase; price level will increase; unemployment will increase

In 2014, a devastating typhoon hit the Philippines, destroying roads and buildings, and killing thousands of people. How will this natural disaster impact the U.S. economy in the short run? Choose one: O A real GDP will decrease; price level will decrease; unemployment will decrease O B. real GDP will increase; price level will increase; unemployment will decrease OC. real GDP will decrease; price level will decrease; unemployment will increase O D. real GDP will increase; price level will increase; unemployment will increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Price level (GDP price index, 2012 = 100) Potential Potential GDP, AS, GDP2 AS2 Real GDP (trillions of 2012 dollars)
16
Suppose that the economy is presently operating at full employment. If there is an increase in national income, which of the following will occur automatically? O A. An increase in tax rates. O B. An increase in unemployment compensation spending. O C. An increase in tax revenues. O D. A decrease in tax rates.
During the 2008–2009 recession, the Z-pop ratio O A. increased. O B. stayed the same. O C. decreased. D. all of the above. O E. none of the above.
QUESTION 1 In the neoclassical model, if the economy starts out on the LRAS (Long Run Aggregate Supply curve), with GDP equal to potential GDP, but then aggregate demand shifts to the left for any reason, what effect will this have in the long run? O a. Inflation O b. Higher real GDP Oc. Deflation and lower real GDP O d. Inflation and higher real GDP e. Deflation O f. Lower real GDP
Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for nominal GDP. O c. equal to the maximum amount of goods and services that can be produced at any given time. O d. the level of output produced when the economy is fully employed. O e. another name for real GDP.
This graph is for the Canadian economy. Price Level a Select one: O Y₁ Real GDP What could have caused the increase in aggregate demand from AD1 to AD2? AD1 O O AD2 a. A higher Canadian dollar exchange rate. b. A decrease in the number of American tourists in Canada. c. An economic expansion in the United States. d. Less American direct investment in Canada. than those in Canada.
Suppose the economy is such that the current GDP is great than potential GDP. If the government does not act, which of the following would we expect to occur? Select one or more: O a. Price levels will decrease Ob. GDP will increase O c. Price levels will increase O d. No effect of GDP e. GDP will decrease O f. No effect on price levels
Which of the following is incorrect about the outcome of the cost of expected inflation? Select one: O a. It results in unfair tax treatments. O b. It does not result in relative price distortions. O c. It increases menu costs. O d. It increases shoe leather cost. Which of the following statements best apply to the closed economy model? Select one: O a. An increase in labour results in an increase in output. O b. The interest rate adjusts to equilibrate demand and supply. O c. Reducing taxes is the best option for increasing income. O d. The government uses fiscal policy to regulate the economy. Complete the statement below. Classical dichotomy Select one: O a. distinguishes between money and inflation. O b. makes the distinction between money demand and money supply. O c. makes a distinction between real and nominal variables. O d. isolates the real interest rate and real GDP
Economists use the neoclassical growth model to explain fluctuations in the business cycle because can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. O cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O
Year 1991 1997 Nominal GDP 425 550 Real GDP O a. none of the choices O b. 125% O c. 0.77% O d. 29.4% O e. 1.294% 400 GDP Deflator (1981=100) 130 137.5 Using the table above, what is the growth rate of nominal GDP between 1991 and 1997?
Solve both of the subparts