Principles of Macroeconomics Business Cycle and the ADAS Questions

Principles of Macroeconomics Business Cycle and the ADAS Questions

Instructions/Descriptions

Principles of Macroeconomics Business Cycle and the ADAS Questions

[Order Now]

Can you help me understand this Economics question?

While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 12 quarters. Once you’ve looked at the data, can you draw conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in recession during the last few years? Why? Use the AD-AS model to illustrate this graphically.  Which curve do you think caused the change? Explain your reasoning.

Principles of Macroeconomics Questionnaire

I’m working on an Economics exercise and need support.

2.When interest rates rise, the transactions demand for money usually

A.

decreases.

B.

increases.

C.

decreases initially and then increases to the original position.

D.

does not change.

3.When the dollar appreciates,

A.

foreign residents demand fewer of our goods, and U.S. residents desire to purchase fewer foreign goods.

B.

foreign residents demand more of our goods, and U.S. residents desire to purchase fewer foreign goods.

C.

foreign residents demand fewer of our goods, and U.S. residents desire to purchase more foreign goods.

D.

foreign residents demand more of our goods, and U.S. residents desire to purchase more foreign goods.

4.According to the quantity theory of money, the price level decreases in equal proportion to

A.

an increase in the real interest rate.

B.

a decrease in the money supply.

C.

a decrease in the nominal interest rate.

D.

an increase in the income velocity of money

5.。。Which of the following is a factor influencing the demand for money?

A.

Asset demand

B.

Precautionary demand

C.

Transactions demand

D.

All of the above are correct

6.。The price of bonds and the interest rate are

A.

unrelated.

B.

related, but we are not sure how.

C.

positively related.

D.

inversely related.

7.。A contractionary monetary policy causes

A.

higher interest rates, which increases the foreign demand for U.S. financial instruments, which causes interest rates to decrease. There is no effect on net exports.

B.

lower interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports.

C.

higher interest rates, which increases the international price of the dollar and decreases net exports.

D.

higher interest rates, which decreases the foreign demand for U.S. financial instruments, raising the international price of the dollar and increasing net exports.

8.。。An excess quantity of money demanded will lead to a rise in

A.

bond prices.

B.

investment.

C.

income.

D.

the interest rate.

9.According to the equation of exchange, if M = $400, P = 8, and Y = $200, then V equals

A.

100.

B.

160.

C.

4.

D.

8.

Principles of Macroeconomics Business Cycle and the ADAS Questions

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!