Increase in real gross domestic product demanded

Reference no: EM13697560

1. The interest rate effect tells us that a reduction in the price level causes people to convert cash for interest bearing assets. This behaviour causes a increase in the interest rate, which subsequently causes an increase in real gross domestic product demanded.

True or False

2. The negative movement from peak to trough of a business cycle is called an economic contraction because over this segment of the business cycle real GDP is larger than the previous period.

True or False

Reference no: EM13697560

Questions Cloud

Reproductive barrier between such a species : Can a single biological species arise more than once (i.e., polyphyletically)? How might this possibility depend on the nature of the reproductive barrier between such a species and its closest relative?

Research kholbergs stages of moral development : Every corporation has a culture. This culture is influenced by individual and groups of different moral suasions. Research Kholberg's Stages of Moral Development

Suppose the economy is in a deflationary gap : Suppose the economy is in a deflationary gap. Which of the following public policies would help bring the economy towards potential GDP?

Economy in a deflationary gap : Assume the economy is currently at potential real GDP. Which of the following would put the economy in a deflationary gap?

Increase in real gross domestic product demanded : The interest rate effect tells us that a reduction in the price level causes people to convert cash for interest bearing assets. This behaviour causes a increase in the interest rate, which subsequently causes an increase in real gross domestic produ..

Why is this double disruptive and harmful to the economy : When the economy is operating at full employment, why is an increase in aggregate demand not helpful to the economy? When the economy is hit with a supply shock, such as oil prices rising from $25 a barrel to $75 a barrel, why is this double disrupti..

The town of podunk has decided to provide security services : The town of Podunk has decided to provide security services to its resident by hiring workers (L) and guard gogs (D).security services (S) are produced according to the production function S=squr LD

Competitive firms demand for a factor of production : Consider a competitive firm's demand for a factor of production as a function of the factor price when prices of other factors are given. let us consider two case-The quantity of output is fixed, The price of the product is fixed. the elasticity of d..

Calculate deadweight loss associated with existence : How does the co-insurance policy affect the quantity of doctor visits consumed? Calculate the deadweight loss associated with the existence of insurance.

User Account

All Pages