Which of the following is true about Long Run Equilibrium? a. the economy is experiencing Long Run Inflation b. the economy is operating under some Frictional and Structural employment. c. the economy is operating with zero frictional or structural unemployment d. the economy is experiencing high unemployment

Which of the following is true about Long Run Equilibrium? a. the economy is experiencing Long Run Inflation b. the economy is operating under some Frictional and Structural employment. c. the economy is operating with zero frictional or structural unemployment d. the economy is experiencing high unemployment

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 2WNG

See similar textbooks

Similar questions

Which of the following is most commonly used to monitor short-run changes in economic activity?a. the inflation rateb. real GDPc. aggregate demandd. aggregate supply
When an economy is operating in a negative output gap (Recessionary Gap) which of the following must be true? a. Unemployment is less than full employment b. Employment is greater than full employment c. Employment is equal to Natural rate of unemployment d. Unemployment is greather than the Natural rate of Unemployment.
Refer to Figure. If the economy starts at c and 1, then in the short run, where does a decrease in taxes move the economy? Price Level d and 2 e and 3 a and 3 b and 2 C Output Inflation Rate 2 3 Unemployment
Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers, then in the short run a. real GDP will rise and the price level might rise, fall, or stay the same. b. real GDP will fall and the price level might rise, fall, or stay the same. c. the price level will rise, and real GDP might rise, fall, or stay the same. d. the price level will fall, and real GDP might rise, fall, or stay the same.
What is the relationship between unemployment and the price level in the short run?
a decreasein the nominal wages will cause the aggregate supply curve to; a. become steeper b. become flatter c. shift outward d. shift inward
Assume that the economy is in a full employment equilibrium. There is an improvement in overall technology for all firms. The following combination of events are likely to occur Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. output rises, prices fall b output falls, prices rise . output rises, prices rise d output falls, prices fall
4Consider a baseline long run equilibrium where output is 22 trillion dollars, and the price level is 100. Note: In the Long Run Steady State Equilibrium, Price expectation is the same as price level & unemployment is 5% or lower. None of these are guaranteed in the short run. Usually, short run equilibrium is called an underemployment equilibrium.Starting from the baseline, suppose COVID 19 hits this economy. If this disease only makes workers sick (everything else remaining constant) A Keynesian Macroeconomist proposes the use of a massive expansionary fiscal policy. Step 1) What will be the shape of the Phillips Curve (Upward / Downward/ Vertical/Horizontal). I want you to think about what variable is measured on the horizontal axis of the Phillips Curve Graph and what variable is measured in the Phillips Curve Vertical axis. Then tell us what it means to say that Phillips Curve is upward or downward sloping or vertical or horizontal Step 2) why did this policy create a…
Suppose the economy is in long-run equilibrium. If there is a sharp increase in the minimum wage as well as an increase in taxes, then in the short run, real GDP will a. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected. b. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be unaffected. c. rise and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower. d. fall and the price level might rise, fall, or stay the same. In the long run, the price level might rise, fall, or stay the same but real GDP will be lower.
a. What is the theorized relationship between the unemployment rate and the minimum wage in the static model of the labour market? b. How should the unemployment rate respond to a constant minimum wage in the static model of the labour market?
Self-correcting mechanism reveals that Group of answer choicesreal wages will increase if there is an increase in price.nominal wages will increase if there is recessionary gap.nominal wages will fall if there is inflationary gap.in the long run economy will be in equilibrium at potential GDP.
Question 23 Macroeconomic equilibrium occurs when Othere is no inflation. real GDP is equal to nominal GDP the aggregate quantity demanded is equal to the aggregate quantity supplied O the unemployment rate is zero