Question
Hello! Please explain these questions to me. Thank you! Question 1: Use the graph to answer the question that follows. The graph shows a horizontal
Hello! Please explain these questions to me. Thank you!
Question 1:
Use the graph to answer the question that follows.
The graph shows a horizontal axis labeled Time and a vertical axis labeled Real GDP. A line rises from left to right labeled Potential. A curve labeled Actual starts at the bottom left of the curve, goes up and to the right to intersect the dashed line at point D, the curve then continues to go up and to the right to reach the high point E. The curve then goes down and to the right to reach point F. The curve continues to go down intersecting the dashed line and then curve goes up and to the right. Three vertical lines are drawn perpendicular to the horizontal axis that terminates at the point D, E, and F respectively. Three horizontal lines with label 2.5 trillion dollars, 2.9 trillion dollars, and 3 trillion dollars are drawn from the point D, F, and E respectively to the vertical axis.
(This information is for the graph^)
At what output is the economy operating at the natural rate of unemployment?
$2.5 trillion $2.9 trillion $3 trillion Both at $2.5 trillion and $2.9 trillion Both at $3 trillion and $2.9 trillion
Question 2:
For country XYZ, a study shows that the nominal GDP was $2,400 billion, whereas the real GDP was less than the nominal GDP because of the GDP deflator that was standing at 120. Considering this, what was the value of real GDP?
$4,800 billion
$3,600 billion
$1,200 billion
$2,000 billion
$2,400 billion
Question 3:
The GDP is a measure of the ________ of a country but does not take into account the ________.
productivity; cost of environmental pollution
standard of living; compensation given to employees
purchasing power; non-market transactions in the country
life expectancy; private consumption by households
government spending; contribution of household members in childcare
Question 4:
At the current equilibrium real GDP, there is a recessionary output gap. Which of the following must be true?
There is no cyclical unemployment.
The economy is expanding.
The economy is at full employment.
The actual unemployment rate is higher than the natural rate.
There is inflation that is higher than expected.
Question 5:
Michaela was recently fired from her factory job because her company's inventories have sharply increased for six consecutive months. Michaela is most likely
a marginally attached worker
a discouraged worker
frictionally unemployed
structurally unemployed
cyclically unemployed
Question 6:
The consumer price index tends to ________ the substitution of lower-priced goods, which has the effect of ________ inflation.
underrepresent; overstating
underrepresent; understating
overrepresent; overstating
overrepresent; understating
ignore; understating
Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started