What is the simple definition of "productive resources" in economics? What are the main factors of production that are known by economics? How can we define "production" in economics? What is total output in economics? What is the economic model that brings about economic growth faster ...
Jon has taught Economics and Finance and has an MBA in Finance Cite this lesson The contractionary gap is when an economy operates below its long-run potential. Learn the definition of a contractionary gap, an illustration of the full employment level of output, and an illustration of...
According to Keynesian economists, what is the explanation of why an economy may not be able to remove itself from a recessionary gap? How does a fiscal policy affect the AS-AD curve? Lets say for example have an equilibrium output of 1600 and full employment level ...
What Is Macroeconomics WhatIsMacroeconomics?•Macroeconomicsisthestudyofthebehavioroftheeconomyasawholeandthepolicymeasuresthatthegovernmentusestoinfluenceit •Utilizesmeasuresincludingtotaloutput,ratesofunemploymentandinflation,andexchangerates •Examinestheeconomyintheshortandlongrun •Shortrun:movementsinthe...
Refer to the table above. What is the value of M1? a) $860 billion b) $900 billion c) $1,360 billion d) $2,560 billion M1 money In macroeconomics, M1 money supply includes the most liquid form of money that includes the cash, coins, checkin...
What is the definition of inflationary gap?An inflationary gap is always related to a business-cycle expansion and arises when theequilibrium levelof an economy’s aggregate output is greater than the output that could be produced at full employment. ...
Other explanations are ruled out, with one exception (the output gap mismeasurement hypothesis), which supplements the monetary policy neglect hypothesis. This conclusion is based on a study of the Great Inflation in both the U.K. and the U.S., and draws on both quantitative and archival ...
In economic terms, what actually causes retail inflation? What is the relationship between economics and scarcity and what are their differences? What is the main trade off in macroeconomics, with reference to inflation and unemployment? a. What is the relationship between t...
In macroeconomics, recession can be described as a visible decline in the economic activities of a specific region or the country which causes a significant impact on the economic health of an economy. A recession represents a period in which the economic and business activities face huge declines...
Because the output gap relies on the gross domestic product in its calculation, it helps provide a picture of how the economy is doing. More specifically, it can be used as a way to determine whether the economy is underperforming or is growing too quickly. That's because this gap can hel...