Question

Economy is presently operating at full employment. If decrease in national income, what will occur automatically?

Economy is presently operating at full employment. If decrease in national income, what will occur automatically?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
assume that the united states economy is operating below full employment a) define full employment -...
assume that the united states economy is operating below full employment a) define full employment - hint this is what economist call the natural rate of unemployment
in a small open economy with full employment, consumption depends only on disposable income. National saving...
in a small open economy with full employment, consumption depends only on disposable income. National saving is 300, investment is given by I = 400 ā€“ 20r, where r is the real interest rate measured in percentage, and the world real interest rate is 10 percent. Compute the investment, trade balance, and net capital outflow.
Consider an economy operating at full employment. Suppose the growth rate of labor productivity remains constant,...
Consider an economy operating at full employment. Suppose the growth rate of labor productivity remains constant, but there is a decrease in aggregate demand (AD). 1) The decrease in aggregate demand will result in 2) an expansion and a decrease in the price level. 3) an expansion and an increase in the price level. 4) a recession and an increase in the price level. a recession and a decrease in the price level. Deviations from full employment that are the...
Suppose the economy is operating below its full employment level. The Fed can A. move the...
Suppose the economy is operating below its full employment level. The Fed can A. move the economy toward the full employment level by expanding the money supply to increase aggregate supply. B.can move the economy toward the full employment level by expanding the money supply to increase aggregate demand and to hold prices constant. C.can move the economy toward the full employment level by expanding the money supply to increase aggregate demand through both its direct and its indirect effects....
4. The classical economists believed that our economy was always at full employment or tending toward...
4. The classical economists believed that our economy was always at full employment or tending toward full employment. If our economy were operating below full employment, what would happen, according to the classical, to move the economy back toward full employment?
If the U.S. economy is operating near full employment and the exchange rate increases (the dollar...
If the U.S. economy is operating near full employment and the exchange rate increases (the dollar appreciates), explain why the Federal Reserve will be less inclined to raise interest rates?
If an economy at full employment experiences a fall in aggregate demand, what can the government...
If an economy at full employment experiences a fall in aggregate demand, what can the government do to help the situation? increase government spending decrease government spending increase taxes on individuals and businesses reduce taxes on individuals and businesses
If the Federal Reserve estimates that the economy is operating at an employment level above full...
If the Federal Reserve estimates that the economy is operating at an employment level above full employment. It would be concerned about which of the following: inflation falling below 2% unemployment being to high inflation increasing above 2% it would not be concerned - the situation is consistent with it's dual mandate Monetary policy is made by _______________ and its decisions change __________________. the Treasury Department, prime interest rate the Treasury Department, federal funds interest rate the FOMC, federal funds...
Assume the economy is at a full-employment equilibrium. Now, if due to the pandemic, shortages in...
Assume the economy is at a full-employment equilibrium. Now, if due to the pandemic, shortages in the supply chain results in higher resource prices, would this, ceteris paribus, be reflected as a change in aggregate demand or a change in aggregate supply? Explain. Be sure to clearly identify a textbook factor of AD or AS that is causing this change. Would this change be an increase or decrease? Explain. Would this change result in the economy moving to a short-run...
Assume the economy is at a full-employment equilibrium. Now, if due to the pandemic, government increases...
Assume the economy is at a full-employment equilibrium. Now, if due to the pandemic, government increases spending to fight the virus, would this, ceteris paribus, be reflected as a change in aggregate demand or a change in aggregate supply? Explain. Be sure to clearly identify a textbook factor of AD or AS that is causing this change. Would this change be an increase or decrease? Explain.  Would this change result in the economy moving to a short-run below, or above, full-employment...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT