Adjustment of the economy back to potential gdp

Assignment Help Business Economics
Reference no: EM131395825

Explain why an increase in export expenditure might temporarily result in the economy operating above potential GDP. Explain why this is temporary. If the government considers that the level of inflation associated with the adjustment of the economy back to potential GDP is too high, how might it act to moderate the outcome?

Reference no: EM131395825

Questions Cloud

Solve the problem using excel present value : Show all steps to solve the problem, then solve the problem using excel present value (PV) calculations showing the changes over all 8 years
Enumerative definitions or definitions by genus : Determine whether the following are demonstrative definitions, enumerative definitions, or definitions by subclass.- "Insect" means something such as a fly, an ant, a wasp, or a caterpillar.
Create the tables and relationships from the database design : Create the tables and relationships from the database design discussed in Lab 2. Add at least five records into each table (Note: You must determine the field values).
Determine if integer is odd or even : Your output should stand alone, like The value 4 is an even number. Hint: See the remainder (modulo) operator in §3.4.
Adjustment of the economy back to potential gdp : Explain why an increase in export expenditure might temporarily result in the economy operating above potential GDP. Explain why this is temporary. If the government considers that the level of inflation associated with the adjustment of the econo..
Enumerative definitions or synonymous definitions : Determine whether the following are demonstrative definitions, enumerative definitions, definitions by subclass or synonymous definitions.- A substance is "translucent" if and only if when held up to a strong light some of the light comes through.
What do you believe about your own health : you will draft a formal paper expressing your personal philosophy of nursing paper. In this paper, you will provide a framework for your personal practice of nursing and reflect on why you chose nursing as a profession. Your paper will define how ..
Change in supply or quantity supplied : If the government imposes a tax of $.25 on each papaya produced, will this cause a change in supply or quantity supplied?
Income attending plays and movies : 1. Kristina, a former actress, spends all her income attending plays and movies. She likes plays exactly three times as much as she likes movies. She earns $120/month.

Reviews

Write a Review

Business Economics Questions & Answers

  Circular flow relates to current economic situations

Explain a way that your family interactsin factor market and a way that it interactsin products market. Discuss how circular flow relates to current economic situations.

  How many days per year must the firm operate to break even

A seasonal bus tour firm has 5 buses with a capacity of 60 people each. Each customer pays $25 for a 1-day tour. The firm has an expense of $5/customer and a fixed annual cost of $360,000. If occupancy on the buses average 80% each day, how many days..

  The absolute value of the elasticity of the demand

Now suppose that the city doubles the fee from $8 to $16. Let's determine what effect this will have on revenue for the city. To be conservative, let's assume that the absolute value of the elasticity of the demand for car trips in central London is ..

  Compare and contrast neoclassical vs behavioral economics

Choose one essay below and write at minimum a 5 paragraph essay (WITH EXAMPLES) APA style Minimum 2 sources excluding the text book. Make a case that either the government works or the government doesn’t work. What is the relationship between fixed c..

  Restrictions on the parameters

What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.

  Suppose the council of economic advisors

Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high.

  Resulted in near term reduction in profits

Texas Instruments the early period of the industry decided to price its semiconductors below production costs the decision increased sales but resulted in near- term reduction in profits. Why did TI make the decision. What were the long term implicat..

  The two products arc partial substitutes

Consider two manufacturers. Each makes a product. The two products arc partial substitutes. Priced at P_t. product i receives a demand q_1 = 15 - 2 9_1 + p_2 and q_2 = 15 - 2 p_2 + p_1. It costs $5 to produce a unit of product I and $10 to produce a ..

  How many workers to use can vary week to week

karens performance pizza is a small restraunt in ny that sells gluten free pizzas karens very tiny kitchen barely has enoug room for the three ovens in which her workers bake the pizzas karen signed a lease obligating her to pay the rent for the t..

  What is the banks current reserve ratio

Spartan Town Bank is the only bank in town when it comes to borrowing or depositing. You may also assume it’s the only bank in the economy. Initially, it holds $4000 worth of checking (or demand) deposits, $1000 of reserves, and $3000 of loans. Const..

  Equal increases in government spending and taxes

According to the Keynesian model, equal increases in government spending and taxes will result in which of the following?

  In a perfectly competitive market for electricity

In a perfectly competitive market for electricity, consumers’ benefit (in dollars) from consuming electricity is given by B(Q)= -Q2+1000 Q, where Q is the unit of electricity consumed. Derive the demand for electricity in this market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd