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Can you help me to answer these question Briefly describe the situation in an economy during a recession. Briefly describe the two conclusions that can
Can you help me to answer these question
- Briefly describe the situation in an economy during a recession.
- Briefly describe the two conclusions that can be drawn from an overview of Say's Law with its emphasis on macroeconomic supply and Keynes' Law with its emphasis on macroeconomic demand.
- Briefly explain the purpose of an AS curve and describe the characteristics of a typical AS curve.
- Briefly explain what is meant by the term "potential GDP," and identify the alternative term that is synonymous with "potential GDP."
- Briefly explain what an aggregate demand curve shows and what it is comprised of. Describe the shape of the demand curve and briefly explain the reasons behind this shape.
- Briefly discuss the wealth effect.
- Briefly discuss the interest rate effect.
- Briefly discuss the foreign price effect in relation to the U.S. economy.
- Identify the most important factor shifting the AS curve in the long term. Briefly explain both how and why this factor shifts the aggregate supply curve.
- Briefly discuss what consumer and business confidence in the economy typically reflects and provide examples. Contrast the effects of high consumer and business confidence with low levels of the same. Briefly explain how a rise in confidence will be reflected in the aggregate supply-aggregate demand model.
- Contrast the actions a central bank would take to increase the quantity of money in the economy with the actions it would take to produce the opposite effect.
- Contrast the actions a central bank should take when an economy is in recession with production substantially below potential GDP and those needed when an economy is producing in overdrive above potential GDP.
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