Which of the following events is likely to increase unemployment and drive the price level down? Select one: a. The U.S. government lowering income and corporate taxes b. Strong economic growth in Mexico, one of our largest trade partners c. The Fed reducing the supply of money through an open market operations d. An increase in the price of fuel due to rising demand from India and China e. A rise in minimum wage

Which of the following events is likely to increase unemployment and drive the price level down? Select one: a. The U.S. government lowering income and corporate taxes b. Strong economic growth in Mexico, one of our largest trade partners c. The Fed reducing the supply of money through an open market operations d. An increase in the price of fuel due to rising demand from India and China e. A rise in minimum wage

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Expectations Theory And The Economy

Section: Chapter Questions

Problem 7QP

See similar textbooks

Similar questions

Economics Which of the following will reduce the price level and real output in the short run? a. an decrease in oil prices b. technical progress c. an increase in government purchases. d. a decrease in the money supply
When current output is less than potential output, the economy must have which of the following? ( Pick 1 Answer) A. Trade deficit B. Rise in inflationary expectations C. Increasing wages D. Cyclical unemployment
SHORT ANSWER Workers on the manufacturing floor are being replaced by robots. For the U.S. economy this is good and bad. The good - Automation allows companies compete with cheap labor from other countries. The bad - Automation eliminates jobs. In your opinion: Where is this trend heading and how will it impact the U.S. economy long term? What policies or legislation would you propose to make the situation better going forward?
2. Describe how economic policies (of the UK and the US) were changed to reflect Adam Smith and NeoClassical Economics, Keynesian Economics and Neo-Liberal Economics from the mid 19th century till the present. What economic principles are Alexandria Ocasio Cortez's Green New Deal founded on. (750 to 1500 words)
Reza says "inflation is being caused by excessive demand." Iman states that "inflation is being caused by supply chain problems." We can conclude that Multiple Choice Both statements are normative Reza's statement is positive, and iman's is positive Iman's statement is positive, but Reza's is normative Reza' statement is positive, but Iman's is normative.
1. What are some of the ways globalization has not worked out? What are the principle causes? 2. Consider the ethical implications on individuals, firms, and governments. What ethical actions can be taken to address globalization? 3. What role does a stable financial system play in maintaining globalization? Provide an example of an unstable financial event and how it affected global activity.
Which of the following might cause the LRAS to shift to the right? A. An increase in the money supply B. An improvement in technology C. A destructive war D. Lower taxes
The economy experiences an increase in the price level and a decrease in real domestic output. What is a likely explanation? Select one: a. government expenditures decreased b. resource prices have increased c. productivity has increased d. business taxes have decreased
16. Which of the following is NOT a goal of Klaus Schwab's Great Reset program? (A) National sovereignty. (B) Green technology. (C) Stakeholder capitalism. (D) A digital passport. 17. Which of the following is NOT a likely reason for supply shortages in 2021? (A) COVID-19 lockdowns and restrictions. (B) Transport legislation. (C) Government handouts (like CERB). (D) Stock market disruptions. 18. Why does Employment Insurance cause unemployment? (A) It increases the price of labour by mandating a minimum. (B) It incentivizes the unemployed to remain so. (C) It reduces the demand for labour. (D) It releases currency into the economy. 19. Which of the following policies does NOT increase structural unemployment? (A) Shutting down job-matching centres. (B) Vaccine mandates at workplaces. (C) Replacing human professors with online AI teachers. (D) Minimum wages. 20. Which of the following assets is the most liquid? (A) Stocks. (B) Residential real estate. (C) Gold. (D) Yachts.
a. Define the gravity model. Specify the variables utilised. b. Apply the gravity model to India and China. Why has it taken so long for India and China to become serious trading partners? Think of 18th century trade patterns, importation of raw materials back to the UK from their colonies. c. Apply the gravity model to the UK in the year 2021. What countries are most important to the UK’s trade relationships?
In 2020, the Venezuelan economy posted that their country’s GDP increased but the level of final products produced is unchanged. There were no new industries there and the same level of output is produced compared to 2019. What can be the explanation for this? a. An increase in import b. An increase in price level c. A decrease in the price level d. And increase in employment
What would be the likely consequences for local employment if a large multinational corporation were to close its manufacturing plant in a small town? A. Local employment rates would increase due to the emergence of new businesses. B. Local employment rates would likely decrease due to the loss of jobs and associated spending. C. The closure would have no significant impact on local employment rates. D. The closure would increase the diversity of job opportunities in the small town.