What happens when firms and workers underestimate future prices in the economy. On what would happen to actual output as opposed to the expected potential output.
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- describe what happens when firms and workers underestimate future prices in the economy. what would happen to actual output as opposed to the expected potential output.Describe what happens when firms and workers underestimate future prices in the economy. Focus your answer on what would happen to actual output as opposed to the expected potential output.In your own words, describe what happens when firms and workers underestimate future prices in the economy. Focus your answer on what would happen to actual output as opposed to the expected potential output.
- If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins an economy?What happens when firms and workers underestimate future prices in the economy? Focus your answer on what would happen to actual output as opposed to the expected potential output. (Course is macroeconomics).A recession in the United States is likely to raise the growth of real GDP in Europe. Do you agree or disagree? Why?
- What are some of the steps economies take to recover the market after the crash?Potential output is the most that can be produced in an economy at a particular point in time. Select one: True FalseWhat global forces are affecting the U.S. economy?What consequences are they having? How might theyaffect your own life?
- Suppose that an economy wants to boost available labor hours in order to increase aggregate supply. What is the best way to accomplish this?The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments to increase in value. People feel very good about the future, that they will keep their jobs, get regular pay raises and life will be good. With this positive feeling, people feel better about making purchases that perhaps they had been delaying earlier. They now use their new-found sense of wealth to buy many things that they had been hesitant to purchase in the past. What kind of economic gap will start to occur (inflationary or recessionary)? What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)? What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)? What…The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now stock market prices begin significant increases, causing peoples’ investments, such as their retirement accounts and other investments to increase in value. People feel very good about the future, that they will keep their jobs, get regular pay raises and life will be good. With this positive feeling, people feel better about making purchases that perhaps they had been delaying earlier. They now use their new-found sense of wealth to buy many things that they had been hesitant to purchase in the past. Given this scenario, insert your answers below each of the following questions. What kind of economic gap will start to occur (inflationary or recessionary)? Which of these graphs, Figure 1 or Figure 2, depicts this economic gap? What part of the Federal Reserve’s congressional mandate does this scenario trigger (price…