Macroeconomic instability.

Question

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Answer 1

Question

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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d. A decrease in aggregate demand. e. An increase in aggregate demand that exceeds an increase in aggrega supply.

Answer 2

Question

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

Answer 6

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

Answer 7

Chapter 19, Problem 1DQ

To determine

Macroeconomic instability.

Answer 8

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.