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Umeployement increase when real GDP increases or real GDP decreases or output increases?
Unemployment causes GDP to decrease. GDP means gross domestic product. If there are no employees to create a product, the GDP goes down.
What term is used for a sustained decrease in real GDP for a consecutive 6 months?
Depression.
Concern about an international crisis has caused consumers to save their money and postpone big purchases what is the effect on aggregate demand and supply?
aggregate demand will decrease, lowering both real GDP and the price level
What will happen to the equilibrium price level and real GDP if aggregate demand and aggregate supply both decrease?
Keynesian model- where AS is upward sloping, GDP will decrease and inflation will either increase or decrease, this depends on which decrease is larger.. Neo classical- GDP will remain the same and price level decreases. The first answer is the one you would use in a class. Try drawing them out and seeing what happens, shift both curves to the left, put Y(GDP) on the x axis and Inflation(Price level) on the y axis.
What impact will a negative demand shock have on the main measures of economic performance?
REal GDP will increase , inflation will increase, and unemployment will decrease
Umeployement increase when real GDP increases or real GDP decreases or output increases?
Unemployment causes GDP to decrease. GDP means gross domestic product. If there are no employees to create a product, the GDP goes down.
What term is used for a sustained decrease in real GDP for a consecutive 6 months?
Depression.
Concern about an international crisis has caused consumers to save their money and postpone big purchases what is the effect on aggregate demand and supply?
aggregate demand will decrease, lowering both real GDP and the price level
What will happen to the equilibrium price level and real GDP if aggregate demand and aggregate supply both decrease?
Keynesian model- where AS is upward sloping, GDP will decrease and inflation will either increase or decrease, this depends on which decrease is larger.. Neo classical- GDP will remain the same and price level decreases. The first answer is the one you would use in a class. Try drawing them out and seeing what happens, shift both curves to the left, put Y(GDP) on the x axis and Inflation(Price level) on the y axis.
What impact will a negative demand shock have on the main measures of economic performance?
REal GDP will increase , inflation will increase, and unemployment will decrease
Nominal GDP differs from real GDP because?
Real GDP is adjusted for changes in the price level.
Explain real GDP vs potential GDP?
Potential GDP is the total numerical value of GDP before inflation is counted in. Real GDP is nominal GDP adjusted for inflation
If the us cracked down on illegal immigrants and returned millions of workers to their countries what would happen in the us to a potential GDP b employment and c the real wage rate?
a. U.S. potential GDP. It would decrease a lot. b. U.S. employment- It would increase unemployment. c. The U.S. real wage rate. It would decrease
Is a nations standard of living measured by GDP or real GDP?
It is measured by Real GDP, the reason is because you cant just say GDP. GDP consists of nominal and real GDP, nominal GDP does not include prices at different constants in other words it just uses one base price for all the different times, whereas real GDP consists of varying price levels at different times. Real GDP
What Real GDP divided by the total population is?
the real GDP per capita
What change is definitely predicted to lower Real GDP in the short run?
A decrease in aggregate demand, an increase in the reserve requirement, an increase in the discount rate, increase in interest rates, a decrease in government spending.
Why has the nominal GDP increased faster than real GDP in the US over time?
The real GDP is influenced by inflation.
