MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
10th Edition
ISBN: 9781319467203
Author: Mankiw
Publisher: MAC HIGHER
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Chapter 10, Problem 2QQ
To determine
Indicators of recession.
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Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year. Which data do you look at? How does the economy behave at the onset of a recession? Explain how unemployment changes over the business cycle. Why do these changes occur?
What happens when firms and workers underestimate future prices in the economy. On what would happen to actual output as opposed to the expected potential output.
For the following video please answer these questions.
Business Cycle. http://www.youtube.com/watch?v=TXrOpjG4dUs
1. Refer to your text book and draw and label the Business Cycle. Be able to identify andexplain the four stages of the cycle.
2. State the characteristics of recession and expansion.3. What stage of the business cycle are we in at this time? What facts or data do youknow that support this.4. How does the business cycle influence an individual country’s economy and the actionstaken by its government?
Chapter 10 Solutions
MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- What is short-term momentum? What are long-term reversals?arrow_forwardYou are a fresh graduate who is being interviewed by an investment bank for a position of analyst. In order to assess your capabilities, the bank has asked you to conduct a macroeconomic analysis. The analysis should lead to a recommendation where you recommend a country for stock market investment. More specifically, you are required to do the choosing Brasil and Argentina 1. Identify at least ten macroeconomic variables. a. Chose the variables in a way that they help you in making good recommendation. 2. Compare the chosen macroeconomic variables over the last five years. a. It is really important for you to utilize charts to show the behavior of chosen variables. b. It is probably better to put both countries on the same chart so that the reader can see how the two countries are doing against each other.arrow_forwardStock market crashes are often followed by economic downturns. Using a 450 -line diagram, explain how a stock market crash has the potential to lead to a recession in an economyarrow_forward
- There are two theories regarding the cause of recessions. Between the two, which one contributes more to it? Explain thoroughly. Provide examples when necessary.arrow_forwardDuring a certain period of time, the economic growth of a country is reflected through some phases of the economic cycle. What is a business cycle? Explain. What are the four phases of the business cycle? Explain each one. Do the four phases have a certain order? Explain your answer. Does an economic cycle have a specific period of months or years? Explain your answer.arrow_forwardWhich of the following keywords is most relevant for analyzing upswings in the stock market using Google Trends? A. Bullish B. Unemployment insurance C. Stocks to sell D. Bearish The data on the number of cellular phone subscribers is an an example of O A. interval data B. ratio data O C. ordinal data D. nominal dataarrow_forward
- Why do economists and managers pay attention to the measurements of macroeconomic activity?arrow_forwardWhat were the causes and consequences of the Great Recession?arrow_forwardEconomics please provide answer for question 2 and 3. Thanks Discuss the following questions in 3-5 paragraphs overall: (1) Why/how has Covid-19 led to a global economic recession? (2) While the originating place of Covid-19 was China, why do you think Western countries have experienced a sharper economic recession than China? (3) As per the definition(s) of recession that we discussed in Chapter 13, do you think Afghanistan is currently in a recession?arrow_forward
- The government of Prime Minister Shinzo Abe said it would offer some $15 billion in financing for businesses hit by the novel coronavirus and spend about $4 billion directly to prop up the economy.“As the top priority for the time being, we have to put all our effort into keeping businesses alive,” Mr. Abe said.Still, in a $5 trillion economy, the measures may not be big enough to dig the country out of a big hole. SMBC Nikko Securities economist Junichi Makino said he expected the Japanese economy to shrink at an annualized pace of 5.8% in the January-to-March period following a 7.1% contraction in the last quarter of 2019.Japan is set to offer emergency no-interest loans of about $1,900 to newly jobless people and others in trouble, and the borrowers may not have to pay the money back if they can’t find work. Businesses at risk from the virus can access financing or loan guarantees from the government QUESTIONS: 1. How would the financing plan designed to supports businesses impact the…arrow_forwardEconomists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators. Which of the following variables are measured as part of this index? Check all that apply. Supplier deliveries The ratio of elderly to nonelderly workers New orders for consumer goods Stock prices The money supply True or False: Businesses and government care only about long-run economic forecasts, because they cannot adapt policy or output to accommodate short-run fluctuations. False True Suppose the most recent data show that the average initial weekly claims for unemployment insurance have recently decreased. This change suggests ____ period in the coming months.arrow_forwardWhy do some economists believe that better inventory control software may help to reduce the frequency and severity of recessions? Could differences in technology explain why recessions appear to be more frequent and more severe in poorer countries?arrow_forward
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