The business cycle may hamper economic growth because it creates additional ________ for business owners. options: A) inflation B) risks C) unemployment D) stability
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The business cycle may hamper
options: A) inflation B) risks C)
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- The steady occurs when the economy is in equilibrium. Specifically, the steady state refers to the situation where K/N and Y/N are constant. K/N will not change when investment per worker equals depreciation per worker. During the adjustment process, the growth rates of Y, Y/N, and K/N will all be negative. Once the steady state is reached, these variables are constant and the growth rates will be zero. True FalseAssuming that the booming economy is currently at an inflation rate such that unemployment is below the natural level. (а) How does the economy return to the natural rate of unemployment if this inflation rate persists? (b) the government wants to bring the output back to the natural level by changing the tax rate, how should it respond?Van manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the______________ of inflation
- Which of the following is LEAST likely to be a cause of long-term secular slowness in increases in U.S. labor productivity? (a) transition of the economy increasingly toward services and away from manufacturing; (b) falling levels of the capital to labor ratio; (c) globalization and the shift of production from places within the U.S. to places outside the U.S.; (d) tighter labor markets and the infusion of more and more workers with below-average skills.Q. COVID-19 all around the world has restricted the economic activity. To stop the spread of the virus Pakistan like many other countries adopted the policy of smart lockdown. Shutting down of the industry has created an adverse supply shock in the economy. While the slowdown in business and economic activities the country is in the recessionary phase of the business cycle as the GDP growth for the FY 2020-21 is expected to be -0.2 accompanied by high unemployment and poverty rate. 1.Using AD-AS model reflect how it might have affected the economy. Explain the impact on price and output. 2.If the policymakers decide to take no action, reflect the impact it is going to create using AD-AS model in the long run. Also, explain the impact on price and output. 3.If the central back opts for increasing money supply, reflect the adjustments using AD-AS in the SR and LR and explain the impact on price and output. (DRAW SEPERATE GRAPH FOR EACH PART)Please no written by hand In the United States, the number of professional workers with college degrees is expected to Blank______ in the coming years. steadily decline increase significantly remain stable
- Question One. Answer the following pertaining to the growth theories. a) Derive the elasticity of the balanced-growth-path level of output with respect to savings rate. b) The Romer growth model assumed that growth rates if capital and knowledge are endogenously determined. Derive the growth rates of capital and knowledge. I want a answer in 15 minSuppose you are the governor of Country A and you have observed some changes in your country. Identify the likely impact on Country A with the economic concepts we have discussed in this course. i. Establishment of more labour unions in many industries in the country ii. A widespread of global pandemiciii. An abolishment of minimum wage lawiv. Much more educated workers than a decade before How would the unemployment rate be affected in each of the above cases? Identify the specific type of unemployment (frictional, structural or cyclical unemployment) affected in each case. i. An earthquake destroying many factories and roads in the country ii. A removal of restrictions on foreign workers working in the country iii. Reaching a trade agreement with many other countriesiv. An occurrence of hyperinflation in the country How would the long run economic growth of the country be affected in each of the above cases? Briefly explain your answers.It is understandable that productivity is rising faster in the service sector because service businesses have more and newer technologies than the manufacturing sector and fewer laborers. True or False True False
- In a high inflationary environment, explain why investing in forest products and forests may be an advantage compared to other investments.11) Neoclassical growth theory regards globalization as a process of harmonious convergence. Depict this argument in a graphical treatment of the movement of per capita output as a function of the capital/labor ratio. What are the key assumptions that you need for achieving convergence towards a long run equilibrium? Discuss clearly.If real GDP growth is -10% then according to Okun’s law, the unemployment rate should be a) increasing by 13 percentage points b) decreasing by 13 percentage points c) increasing by 6.5 percentage points d) decreasing by 6.5 percentage points please show steps