Question

In: Economics

Macroeconomics 2 True or False? Please explain shortly and make sure of the answer. Thanks. 17....

Macroeconomics 2 True or False? Please explain shortly and make sure of the answer. Thanks.

17. A recession results in decrease of welfare program.

18. A recession and the tax are not related.

19. The unemployment and inflation are in inverse relation.

20. The unemployment and inflation relation are related to aggregate demand.

26. The trade deficit increases net capital inflow.

27. The export increases consumer surplus.

Expert Solution

17. A recession results in decrease of welfare program.

Answer: False statement: welfare programs increase during a recession. welfare programs increase aggregate demand.

18. A recession and the tax are not related.

Answer: False statement: government reduces the taxes during economic recession. it moderates the impacts of recession.

19. The unemployment and inflation are in inverse relation.

Answer: True statement: it is also called Phillips curve. Economy has to bear the high inflation if it wants to reduce the unemployment rate.

20. The unemployment and inflation relation are related to aggregate demand.

Answer: True statement: Change in demand affects the unemployment and inflation.

26. The trade deficit increases net capital inflow.

answer: True statement:

27. The export increases consumer surplus.

Answer: False statement. it reduces availability of output and price rises, so CS falls.

Rahul Sunny answered 1 year ago

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