C Which of the Following Events Could Cause Stagflation

Equal increase in both imports and exports D. Wages fall due to increased foreign competition.

What Is Stagflation Definition Causes Effects Thestreet

D medium-term fluctuations of aggregate output around its long term trend.

. In the 1970s Keynesian economists had to reconsider their ideas as industrialized countries around the globe entered into a period of stagflation. Large decrease in wages. Stagflation in this view is caused by cost-push inflation.

Stagflation is the result of a decrease in the short-run aggregate supply curve. An increase in government spending increases interest rates causing investment to fall. Which one of the following describes when stagflation occurs a When there are.

D medium-term fluctuations of aggregate output around its long term trend. Following a positive demand shock that takes the economy from E0 to E1 the movement of the economy from E1 to E2 indicates that A a demand shock can keep real GDP above potential output permanently. A A leftward shift of the short-run aggregate supply curve only Which of the following events will most likely cause an increase in both the price level and real GDP.

Widespread outbreak of a serious infectious disease. A large increase in the net tax rate d. Decrease in aggregate demand E.

Stagflation is defined as slow economic growth. CSteel and other raw materials increase in price. In the basic ADAS macro model which of the following events would cause stagflation.

Depending on the size of the multiplier and crowding-out effects the rightward shift in aggregate demand from a tax cut could be larger or smaller than the tax cut. Question 5 2 2 pts When the Federal Reserve decreases the federal funds target rate the lower rate is achieved through sales of government bonds which reduces interest rates and causes people to hold. Leftward Phillips curve shifts.

4 The most common culprit is when the government prints currency. A large increase in the price of raw materials e. Government spending on infrastructure increases.

The common cause of stagflation is an increase in resource costs including steel oil and other inputs to production. In the 1970s stagflation was at least partially caused. Which of the following can be expected to cause an increase in gross domestic product in the short-run.

Increase in aggregate demand D. Equal increase in both taxes and government expenditures E. Business Economics QA Library In the basic ADAS model a could cause stagflation.

Which one of the following describes when stagflation. Stagflation could be caused by which of the following. E gyrations of share prices on the stock market.

Pages 46 This preview shows page 34 - 36 out of 46 pages. C an increase in the price level causes the AD curve to shift to the. An increase in long-run aggregate supply.

An increase in taxes increases interest rates causing investment to fall. Harsh regulation of markets goods and labor in an otherwise inflationary environment are cited as the possible cause of stagflation. In the absence of any government action stagflation might correct itself in time.

A falling money supply. Cost-push inflation occurs when some force or condition increases the costs of production. Increase in aggregate supply B.

Up to 20 cash back Which of the following contributes to stagflation. Large increase in labour productivity. Lowering marginal tax rates c.

Both increase the money supply and create inflation. It can also occur when a central banks monetary policies create credit. Decrease in aggregate supply C.

Any of these has an equal chance of creating stagflation 31. A large increase in business confidence c. An increase in the interest rate C.

A large decrease in wages b. Which of the following would cause stagflation. This could be caused by government policies such as taxes or from purely external factors such.

In the basic ADAS macro model which of the following events would cause stagflation. An increase in the tax rate B. Course Title ECON 500.

Which of the following would lead to stagflation. This causes the short-run equilibrium price level to increase and real GDP to decrease. Helped to create full employment Helped to re-elect Jimmy Carter in 1980 Part of the worldwide economy in the 20th century Was good for the economies of advanced nations A result of slow economic growth high unemployment.

A a large increase in labour productivity B a large increase in business confidence C a large increase in the price of raw materials D a large increase in the net tax rate E a large decrease in wages. Large decrease in the net tax rate. Discrimination which prevents the most productive employee from being hired d.

Stagflation occurs when the government or central banks expand the money supply at the same time they constrain supply. Equal decreases in both investment and government expenditure. A large increase in labour productivity.

B an increase in the price level causes the AS curve to shift to the left. Which of the following was true about stagflation. Large increase in business confidence.

C long run trends upward or downward in employment. Which of the following events could cause stagflation. AThe Federal Reserve increases interest rates.

A decrease in short-run aggregate supply. Job-training programs that train workers to perform economically useful jobs Rightward AS shifts will cause a.

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