What are the important mechanisms that reverse the effects of a recession in a modern economy? (Check all that apply.) A. Labor supply increases due to an increase in real wages. B. The multipliers on wages and employment return to normal. C. Labor demand increases due to expansionary government policies. D. Labor demand increases due to market forces. What market forces might cause the labor demand curve to shift back to the right? (Check all that apply.)
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- 30. What is the difference between a recession and a depression? A. A depression is the opposite of a recession. B. A depression occurs at the peak of the business cycle, while a recession occurs during a contraction. C. A depression is a particularly severe and long-lasting form of recession. D. A depression is caused by government inaction, while a recession is a natural feature of the business cycle.The housing market has weakened during every recession except which of the following? a. The Recession of 1974 b. The Recession of 1991 c. The Recession of 2001 d. The Recession of 2008How can shipping delays and shortages of intermediate goods cause a recession? Why may these issues lead to a reduction in consumer spending? Consider how consumers change the timing of their purchases to reflect the market.
- (b) Assume that the household in an economy spend 75% of their extra income. Calculate the change of aggregate demand if government increase their spending by $150,000. (c) If prices keep rising, a nightmare scenario for the US economy is a real possibility New York (CNN Business) There's no denying it: Inflation is here. Consumer prices surged 7% over the past year. Housing prices have continued to soar, too. But the question on the minds of many economists and Wall Street strategists is whether something even worse could be in the cards: prices rising as the economy slows. Source: CNN Business, 12" January 2022. Examine the cause of stagflation, and how it affects the output and price level. (d) Based on part (c), what will happen to the output and price level if the US policymakers accommodate the shift in aggregate supply? State only one fiscal policy tool that the policymakers may use.“Households tend to increase their spending during a recession because they realize that more spending will cause firms to hire more workers and the problem of unemployment will be solved.” Do you agree or disagree? Explain.What makes the 2007-2009 recession special? 1. because of the length of the recession 2. because of period required for the economy to recover from the recession and why
- A number of macroeconomic variables decline during recessions. One of these variables is the GDP. 1. What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in these economic variables which are to be expected. 2. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles?Wine Bread 1) See above. An economy operated at a full employment. Then the economy went into recession. This change is portrayed in the movement from: A. C to B B. F to C C. B to E D. C to FSuppose the economy is experiencing a recessionary gap. In the long run, if there is no government intervention, the nominal wages will ______, unemployment will _____, and the price level will _______. A.fall; rise; fall B.fall; fall; fall C.rise; fall; rise D.rise; rise; rise
- Economics QuestionResearch past recessions in the US economy. Analyze why the recessions occurred, the societal and economic impact of the recessions, and what policies were implemented due to recessions.42)Which one of the following is TRUE? Select one: a. 1929 to 1933 was the Great Depression b. 1979 was the first oil shock c. December 2007 to June 2008 was the Great Recession d. 1994 to 2000 was a recession in the U.S. e. 2008 was a recession in the U.S. caused by Paul Volcker increasing the interest rate