Question

In: Economics

1) Which of the following are arguments for why the coronavirus is unlikely to have a...

1) Which of the following are arguments for why the coronavirus is unlikely to have a significant long-run negative impact on economic growth?

In the long run output is determined by technology, labor, capital, human capital, and natural resources.

Even America’s worst economic downturn (the Great Depression) did not have a significant long-run negative impact on economic growth.

Both A and B are incorrect.

Both A and B are correct.

2) The coronavirus will likely have the smallest unemployment effects on which segment of the labor force?

Workers with less than a high school degree.

Workers with only a high school degree. Workers with a bachelor’s degree or higher.

Across all education levels, there will likely be equal unemployment effects.

The coronavirus shock can be modeled as a ___________ and a ___________.

decrease in aggregate demand; decrease in short-run aggregate supply

decrease in aggregate demand; increase in short-run aggregate supply

increase in aggregate demand; decrease in short-run aggregate supply

increase in aggregate demand; increase in short-run aggregate supply

4)  With the 1957-58 recession __________.

there was the largest decline in real GDP in post WWII history

unemployment was more severe than during the Great Depression

policymakers did nothing to aid an economic recovery

all of the above are correct

Solutions

Expert Solution

1) Which of the following are arguments for why the coronavirus is unlikely to have a significant long-run negative impact on economic growth?

In the long run output is determined by technology, labor, capital, human capital, and natural resources.

Even America’s worst economic downturn (the Great Depression) did not have a significant long-run negative impact on economic growth.

Both A and B are incorrect.

Both A and B are correct. this is the right answer

2) The coronavirus will likely have the smallest unemployment effects on which segment of the labor force?

Workers with less than a high school degree.

Workers with only a high school degree.

Workers with a bachelor’s degree or higher. This is the right answer as these can still work from home.

Across all education levels, there will likely be equal unemployment effects.

3) The coronavirus shock can be modeled as a ___________ and a ___________.

decrease in aggregate demand; decrease in short-run aggregate supply. This is the right answer since both demand and supply have been hit due to the virus.

decrease in aggregate demand; increase in short-run aggregate supply

increase in aggregate demand; decrease in short-run aggregate supply

increase in aggregate demand; increase in short-run aggregate supply

4)  With the 1957-58 recession __________.

there was the largest decline in real GDP in post WWII history

unemployment was more severe than during the Great Depression

policymakers did nothing to aid an economic recovery

all of the above are correct. This is the right answer.


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