Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 7.4, Problem 3ST
To determine
Explain the business cycle and real GDP growth.
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During 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.
How has real GDP growth performed recently? Does it suggest the economy is growing close to potential (or the steady state rate of growth)?
In the very long run, what are the major factors that are responsible for growth in potential output or GDP? Use the production function to support your answer.
Chapter 7 Solutions
Macroeconomics
Ch. 7.1 - Prob. 1STCh. 7.1 - Prob. 2STCh. 7.2 - Prob. 1STCh. 7.2 - Prob. 2STCh. 7.2 - Prob. 3STCh. 7.4 - Prob. 1STCh. 7.4 - Prob. 2STCh. 7.4 - Prob. 3STCh. 7 - Prob. 1QPCh. 7 - Prob. 2QP
Ch. 7 - Prob. 3QPCh. 7 - Prob. 4QPCh. 7 - Prob. 5QPCh. 7 - Prob. 6QPCh. 7 - Prob. 7QPCh. 7 - Prob. 8QPCh. 7 - Prob. 9QPCh. 7 - Prob. 10QPCh. 7 - Prob. 11QPCh. 7 - Prob. 12QPCh. 7 - Prob. 13QPCh. 7 - Prob. 14QPCh. 7 - Prob. 1WNGCh. 7 - Prob. 2WNGCh. 7 - Prob. 3WNGCh. 7 - Prob. 4WNGCh. 7 - Prob. 5WNGCh. 7 - Prob. 6WNGCh. 7 - Prob. 7WNGCh. 7 - Prob. 8WNGCh. 7 - Prob. 9WNGCh. 7 - Prob. 10WNGCh. 7 - Prob. 11WNG
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- A broader definition of macroeconomics and its relationship with the level of production, unemployment and inflation of a country.arrow_forwardIf output rises by 35 percent while hours of work increase by 40 percent, has productivity increased or decreased? By how much?arrow_forwardwhy is the economy not self-correcting? What can be done about it?arrow_forward
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- You must be thorough (not repetitive) in your answer. Fully explain your choice and why you made that choice. All answers must be placed in the space provided. On the basis of recent news reports and our class lessons and discussions: Your answer: What phase of the business cycle do you think the economy is in now? WHY? You must provide an answer based on terms or indicators discussed in class. What was the unemployment rate prior to the national shutdown in March 2019? What was the highest unemployment rate in Canada over the duration of the pandemic? What is the inflation or deflation rate now? If the economy is functioning at an unemployment rate under the natural rate what kind of output gap do you expect? If there is 7.5 percent cyclical unemployment, how much do you expect GDP to fall below its potential?arrow_forwardExplain macroeconomics and its impact on our daily life?arrow_forwardWhy do you think most western countries GDP has not grown as fast as China's GDP over the last 10 years? If you were in charge of trying to make a country like Spain's economy grow faster what would you do?arrow_forward
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