Question : 11) A recessionary output gap implies that A) the demand : 1384406

Economics

11) A recessionary output gap implies that

A) the demand for all factor services will be relatively low.

B) the intersection of AD and AS occurs where real GDP exceeds potential output.

C) the economy’s resources are being used at more than their normal capacity.

D) there is upward pressure on wages.

E) there is excess demand for most factors of production.

12) An inflationary output gap would generate which of the following conditions in the economy?

A) Firms are making low profits.

B) Workers have a relatively large amount of bargaining power with employers.

C) There is an unusually small demand for labour.

D) There is downward pressure on wages.

E) There is much idle capacity.

13) An inflationary output gap is characterized by

A) falling prices.

B) constant prices.

C) real output that varies one-for-one with aggregate demand.

D) real GDP exceeding potential output.

E) real GDP falling below potential output.

14) A recessionary output gap is characterized by

A) rising prices.

B) constant prices.

C) real output that varies one-for-one with aggregate demand.

D) real GDP exceeding potential output.

E) real GDP falling below potential output.

15) Which of the following will occur as part of the automatic adjustment process in an economy with an inflationary gap?

A) falling prices

B) increasing investment

C) declining government purchases

D) rising wages

E) increasing tax rates

16) Which of the following would occur as part of the automatic adjustment process in an economy with a recessionary gap?

A) rising prices

B) decreasing investment

C) increasing government purchases

D) falling tax rates

E) decreasing wages

17) If the short-run macroeconomic equilibrium occurs with real GDP less than Y*, the economy is

A) at its full-employment level of output.

B) experiencing a recessionary gap.

C) experiencing an inflationary gap.

D) threatened with an acceleration of inflation.

E) operating at full capacity.

18) If the short-run macroeconomic equilibrium occurs with real GDP greater than potential output, the economy is

A) at its full-employment level of output.

B) experiencing a recessionary output gap.

C) experiencing an inflationary output gap.

D) threatened with a demand shock.

E) operating at full capacity.

19) If wages rise faster than increases in labour productivity, then unit labour costs will

A) fall and the AS curve will shift left.

B) fall and the AS curve will shift right.

C) rise and the AS curve will shift left.

D) rise and the AS curve will shift right.

E) not change because only total labour costs change.

20) A common assumption among macroeconomists is that when real GDP exceeds potential output, factor prices adjust and the

A) AS curve shifts to the left fairly rapidly.

B) AS curve shifts to the left only very slowly.

C) AS curve shifts to the right very rapidly.

D) AD curve shifts to the left rapidly.

E) none of the above— the AS curve remains unchanged.

Continue to order Get a quote

July 1, 2023

Distinguishing Inductive and Deductive Reasoning

Required Resources
Read/review the following resources for this activity:

· Textbook: Chapter 8, 9, 17 (Introduction)

· Lesson

· Minimum of 1 scholarly source (in addition to the textbook)

Click on the following tabs to review the concepts that will be addressed in this activity:

A valid structure is the way in which an argument is put together that assures it will pass the test of logical strength.

Deductive: In deductive arguments, the speaker asserts that her premises are true and, therefore, her conclusion must be accepted. Remember that in a deductive argument, logical strength does not depend on the literal truth of the premises. When we test for logical strength, we assume the premises are true. Once we determine that the argument is logically valid, we can then look at the actual – not presumed – truth of the premises.

Inductive: In inductive arguments, the speaker presents evidence that she claims support the probable truth of her conclusion – that her conclusion is the most likely true – and so you should accept it.

The Basic Structure of Deductive and Inductive Arguments
Argument examples:

Deductive Argument Example: “Tightening laws restricting the use and possession of firearms does not protect average law-abiding citizens; it only puts them at greater risk. Enforcing licensing restrictions, trigger locks, and waiting periods makes it more difficult for law-abiding citizens to defend themselves, and, as a result, encourages criminal activity. Only criminals benefit when ordinary citizens are deprived of their right to own a firearm and protect themselves, their homes, and their families" (Lott, 2000, p. 169)

Lott, J., (2000). More guns, less crime: Understanding crime and gun-control laws. University of Chicago Press.

The argument boils down to this:

· Laws that are obeyed by ordinary citizens and not obeyed by criminals are laws that put ordinary citizens at risk.

· Tight gun laws are laws that are obeyed only by ordinary citizens.

· Tight gun laws put ordinary citizens at risk.

However, the argument itself is composed of three intertwined syllogisms:

Only ordinary citizens are persons who respect tight gun laws.
Criminal persons are not ordinary citizens.
Therefore, criminals do not respect tight gun laws.

Tight gun laws restrict only ordinary citizens.
No criminal is an ordinary citizen.
No criminal is restricted by tight gun laws.

Laws that disfavor the good are laws that favor the bad.
Tight gun laws favor the bad.
Therefore, tight gun laws disfavor the good.

Notice that you cannot remove any of the “legs” and maintain the claim. Notice, also, that the reasons are closely connected and depend on or follow from each other. Notice, also, that the first premise (called the major premise) must be accepted as true, or the entire argument fails.

Inductive Argument: The United States is too dependent upon foreign oil. According to the U.S. Department of Energy, we rely on imported foreign oil for about 45% of our needs. Of the imported oil, most comes from Canada, but 22% comes from countries in the Middle East. Undeniably, this dependence shapes our foreign policy. We have vast oil reserves that could make us energy independent. Development of these resources would produce much-needed jobs, many of them in areas of the country suffering most from the recession. We should be developing an energy policy that makes us energy independent.

· Reason: We import 45% of our oil.

· Reason: Middle East oil imports shape our foreign policy.

· Reason: Our vast oil reserves could make us energy independent.

· Reason: Development of oil reserves could produce much needed jobs.

· Conclusion: For any or all of the above, independent reasons, we should become energy independent.

Notice that any one of these reasons, standing alone, could support the conclusions; they are not logically related to one another as they would be in a syllogism.

Initial Post Instructions
For the initial post, address the following:

· Find and post examples of deductive and inductive arguments. Do NOT use an argument example which clearly indicates it is an example of an inductive/deductive argument.

· For each example, evaluate its logical strength, using the concepts and ideas presented in the textbook readings, the lesson, and any other source you find that helps you to evaluate the validity (deductive) or strength (inductive) of the argument. You can use examples from the text, or you can find examples elsewhere.

oEditorials and opinion columns are a good source, as are letters to the editor. Blogs will also often be based on arguments.

oUse mapping and evaluative techniques to make sure it is an argument.

· Is it inductive or deductive? Explain why.

· Does it pass the tests of validity and strength? Explain.