502 Final Project Part II Milestone-Overview and Macroeconomic Variables

Austria is one of the largest exporters of oil.  At the end of 2019, the global price of oil fell substantially.  For this question, treat oil as a final good, not an input into production.  Begin at long-run equilibrium.1. As a result of the fall in the price of oil, Austria's AD (increased,decreased,remained the same,changed ambiguously), SRAS (increased,decreased,remained the same,changed ambiguously), and LRAS (increased,decreased,remained the same,changed ambiguously).  GDP (increased,decreased,remained the same,changed ambiguously), unemployment (increased,decreased,remained the same,changed ambiguously), and the price level (increased,decreased,remained the same,changed ambiguously).2. Assume that the government intervened to resolve the output gap.  As a result of the government intervention, AD  (increased,decreased,remained the same,changed ambiguously), SRAS (increased,decreased,remained the same,changed ambiguously), and LRAS (increased,decreased,remained the same,changed…

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A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. Suppose the sushi bar’s revenue from the first year is $120,000. What is the chef’s economics profit? 14,000 -14,000 66,000 68,000

Firm​ X, a leading manufacturer of rubber tires in country​ A, caters to almost​ one-third of the domestic tire market. The country was hit by a recession last year that caused the national output growth to be negative. Simon​ Reeds, the CEO of firm​ X, feels that these fluctuations in the business environment are​ short-lived and expects the economy to recover very soon. In spite of the​ recession, Simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. The​ firm's marketing​ head, Sandra​ Jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making​ large-scale investments in the present climate.   Which of the​ following, if​ true, would support the marketing​ head's claim?     A. In the previous​ recession, a leading player in the hospitality sector had expanded its facilities but was unable…

Firm​ X, a leading manufacturer of rubber tires in country​ A, caters to almost​ one-third of the domestic tire market. The country was hit by a recession last year that caused the national output growth to be negative. Simon​ Reeds, the CEO of firm​ X, feels that these fluctuations in the business environment are​ short-lived and expects the economy to recover very soon. In spite of the​ recession, Simon feels that the firm can actually invest in expanding its facilities as it has sufficient cash flows to continue its operation during the crisis period. The​ firm's marketing​ head, Sandra​ Jones, counters this by saying that the firm is already losing sales due to the recession and they should not increase costs further by making​ large-scale investments in the present climate.   Which of the​ following, if​ true, would support the​ CEO's claim?     A. The government recently announced a plan to offer incentives to buyers in the car and household appliances market.   B.…

Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. 2020 Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Price Quantity in Basket (Dollars) 1 64 150 2 10 8 40 Suppose this price index uses 2020 as the base year. 80 2 3 Cost (Dollars) 64 300 800 16 120 1,300 100 Price (Dollars) 104 2 85 2 4 2021 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. 2022 %. Between 2021 and 2022, the UPI increased by Price Cost (Dollars) (Dollars) 134 2 105 4 5 Between 2020 and 2021, the UPI increased by […

Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Suppose this price index uses 2020 as the base year. Price (Dollars) 64 Between 2020 and 2021, the UPI increased by 2020 2 80 2 3 Cost (Dollars) 64 300 800 16 120 1,300 100 Price (Dollars) 104 2 85 2 4 2021 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. % Between 2021 and 2022, the UPI increased by Price (Dollars) 134 2 105 4 5 % 2022 Cost (Dollars)

Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket's total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Streaming services Iced coffees Textbooks Notebooks Energy drinks Total cost Price index Quantity in Basket 1 150 10 8 40 Price (Dollars) 64 2 80 Suppose this price index uses 2020 as the base year. W N 2020 3 Cost (Dollars) 64 300 800 16 120 1,300 100 2021 Price (Dollars) 104 2 85 2 4 Cost (Dollars) In the last row of the table, calculate and enter the value of the UPI for the remaining years. Between 2020 and 2021, the UPI increased by %. Between 2021 and 2022, the UPI increased by Price (Dollars) 134 2 105 4 5 2022 % Cost (Dollars)…

Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket’s total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table.   Quantity in Basket 2020 2021 2022 Price Cost Price Cost Price Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Streaming services 1 64 64 104   134   Iced coffees 150 2 300 2   2   Textbooks 10 80 800 85   105   Notebooks 8 2 16 2   4   Energy drinks 40 3 120 4   5   Total cost     1,300         Price index     100           Suppose this price index uses 2020 as the base year. In the last row of the table, calculate and…

The weighted average TT/US dollar selling rate depreciated marginally by 0.05 percent to US$1 = TT$6.7838 in August 2021 from US$1 = TT$6.7802 in October 2020.” Create a supply and demand graph with the above information.

5.

In 2019, Chinese online retail sales were $1.5 trillion, representing a quarter of China's total retail sales volume, and more than the retail sales of the ten next largest markets in the world combined. Explain why online retail shopping thrived in China over the last two decades

“The oil Price run-up of 2007-08 was caused by strong demand confronting stagnating world production.  Although the causes were different, the consequences for the economy appear to have been very similar to those observed in earlier episodes, with significant effects on overall consumption spending and purchases of domestic automobiles in particular. The experience of 2007-08 should thus be added to the list of recessions to which oil prices appear to have made a material contribution.”                                                                                                Source:   Hamilton, J.D., 2009. Causes and Consequences of the Oil Shock of 2007-08 (No. w15002). National Bureau of Economic Research.   a) Oil price shocks have an evident impact on the short run aggregate supply curve. With the help of a graph demonstrate how rising oil prices affect the SRAS and explain what other factors can cause this shift.                                          b) Different theories…

In 2020 Pakistan Automobile Market falls by 33.6 % as the pandemic and lockdowns affect sales. In the same year, Ministry of Industries has announced its new auto policy to reduce taxes which would bring down car prices and provide relief the consumers. Moreover, the government has also approved the Electric Vehicle (EV) policy. Considering the above scenario, do you think that government is diligently working to uplift the economy and has the recognition that the automobile sector can be the biggest contributor in it?

Find the value of aggregate supply with the consumption expenditure is given as $2000 and the saving is given as $400

Real estate has been a lucrative investment for many years. Real estate provides greater diversification properties as compared to equity or fixed-income investments. Two important benefits to investing in real estate are the abilities to leverage investments and to decrease tax liability. Consider Beth’s case: In 2011, Beth has an adjusted gross income from one job of $50,000 (not including any deductions from real estate loss). In addition, Beth owns an apartment building that she rents out throughout the year. The revenues she received from her apartment building amounted to $150,000 in rent payments for the year. The operating expenses (maintenance, mortgage interest, and so forth) amounted to $90,000 for the year. Her income (before subtracting depreciation expenses) for the apartment building is therefore    (her rental income minus her expenses).   Her accountant has informed her that the apartment building can be depreciated upto $67,500 for tax purposes in 2011;…

Variables typically included in a multivariate supply function (other than the price and quantity of the item the supply function represents) are prices of other goods that use similar input resources for production, expectations, the number of suppliers, techniques of production, taxes and subsidies, and prices of input resources, weather.  Please answer the following questions about the affect changes in other variables might have on the supply of the item.  These changes will either cause supply to increase (shift right) or decrease (shift left).  Use either word as applicable, for the short answer.   If there is an increase in the number of producers of the item being considered, then the supply of it is likely to:     A tariff is a form of trade restriction (that behaves much like a tax).  Suppose the United States removes a high tariff on imported broccoli that had been in effect for a long time.  How should this affect the supply of imported broccoli?     A decrease in a…

Austria is one of the largest exporters of oil.  At the end of 2019, the global price of oil fell substantially.  For this question, treat oil as a final good, not an input into production.  Begin at long-run equilibrium. this is all one question please answer everything!   Now assume that the government did not intervene and instead allowed the economy to self-correct.  As a result of the self-correction, AD ( increased,decreased,remained the same,changed ambiguously) SRAS ( increased,decreased,remained the same,changed ambiguously) LRAS ( increased,decreased,remained the same,changed ambiguously) GDP ( increased,decreased,remained the same,changed ambiguously)relative to before the crisis, unemployment  relative to before the crisis, and the price level ( increased,decreased,remained the same,changed ambiguously)relative to before the crisis.( increased,decreased,remained the same,changed ambiguously)

389. The economy is in a recession. And consumer spending for large appliances (such as refrigerators) has fallen. At the factories that produce these large appliances, we expect the demand for workers to and wages for these workers to (A) Decrease; increase (B) Decrease; decrease (C) Increase; increase (D) Remain unchanged; remain unchanged (E) Increase; decrease

Bureau of Economic Analysis—July 30, 2021 The US economy continued its robust recovery during the second quarter in 2021, allaying fears the coronavirus pandemic had permanently plunged the economy into recession. The second-quarter surge in economic activity was driven by consumer spending, which showed 24.6% increase. In addition to the increase in personal consumption, business investment rose by 9%, with subcomponents in structures and equipment each growing. Government spending rose a modest 2.7%, in large measure due to stimulus spending under President Biden and the Democratic Congress to help suffering households and businesses. The spike in GDP was accompanied by a drop in the unemployment rate, with the 2nd Quarter unemployment rate at 5.4%.  And the Fed reported the nation’s capital utilization rate in the 2nd quarter ticked upward to 68%. Please reproduce the graph 4A. Reproduce Figure 1.3 from Module 1--The Keynesian Model of an economy below its level of potential output.…

Please correct answer and don't use hend raiting

Recent data from the Bureau of Labor Statistics show that the average price level for consumers rose 5.4% over the past year. While some are expressing concern over rising inflation leading the economy to “overheat,” there is some evidence indicating that this is due to the reopening of the economy as producers adjust to rising demand for goods and services. Many of the goods with the largest price increases, like bacon or cars and trucks, cannot have their production ramped up as quickly as demand is increasing. Other industries are facing supply chain challenges, like shortages of truck drivers. These problems are most likely to be short term, so, as supply catches up with demand, we can expect to see prices return to normal. As evidence, after spiking to record highs in early summer, lumber prices have now fallen below their price at the start of the year. The reason for the dramatic price increase earlier in the year was a combination of reduced supply in 2019 and a surge in demand…

In the short run, the quantity of output supplied by firms can deviate from the natural level of output if the actual price level deviates from the expected price level in the economy. A number of theories explain reasons why this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will   (decrease/not change/increase) , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by (raising/lowering) the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to (fall short of/exceed)  the…

Please answer everything in the photo.

Consider the economy described by the following equations:  C = 1,600 + 0.9 (Y – T) I p = 800 G = 1,600 NX = 200 T = 1,600 Y* = 29,000 a.  Complete the table shown below to find short-run equilibrium output. Consider possible values for short-run equilibrium output as they are given in the table below.Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.   OutputY Planned aggregate expenditure (PAE) Y – PAE Y = PAE? 27,200       (Click to select)   Yes   No  27,400       (Click to select)   No   Yes  27,600       (Click to select)   No   Yes  27,800       (Click to select)   No   Yes  28,000       (Click to select)   No   Yes          b. Short-run level of equilibrium output:           c. What is the output gap for this economy?       Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. The actual unemployment rate should…

The popularity of the iPhone 12 meant Apple overtook Samsung in smartphone sales in the final quarter of last year, the first time this has happened in four years, says Gartner. The market intelligence firm says Apple saw year-on-year growth of 14.9%, while Samsung saw its own sales fall by 11.8% in the same period… Gartner says that across the whole of 2020, Apple enjoyed more modest growth of 3.3%, while Samsung’s sales fell by a larger 14.6%. State how iPhone and Samsung demand is related to each other and mention in which category of goods they fall.  Explain with the help of graph that how an increased demand of Apple products can affect the Samsung products.

Economics

Let's think of an economy with two industries and these industries be water and electricity companies. Electricity company, electricity using water and electricity; The water company also produces water using water and electricity. With the output of both companies measured in TL, 0.1 TL electricity and 0.1 TL water is required to produce 1 TL of electricity, 0.8 TL electricity and 0.2 TL water to produce 1 TL water. As the demand of the foreign sector is 18.000 TL electricity and 12.000 TL water production, X1 = total output of the electricity company, X2 = total output of the water company, electricity and waterCalculate the total output required for the companies to meet both external and internal demand by any matrix method.

3. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. Supply Demand 100 200 300 400 500 LOANABLE FUNDS (Billions of dollars) A INTEREST RATE (Percent) m 0 0 600

The Greek letter a represents a number that determines how much output responds to unexpected changes in the price level. In this case, assume that a = $2 billion. That is, when the actual price level exceeds the expected price level by 1, the quantity of output supplied will exceed the natural level of output by $2 billion. Suppose the natural level of output is $50 billion of real GDP and that people expect a price level of 110. On the following graph, use the purple line (diamond symbol) to plot this economy's long-run aggregate supply (LRAS) curve. Then use the orange line segments (square symbol) to plot the economy's short-run aggregate supply (AS) curve at each of the following price levels: 100, 105, 110, 115, and 120. PRICE LEVEL 125 120 115 110 105 100 95 90 85 80 75 0 10 20 ☐ 30 40 50 60 70 OUTPUT (Billions of dollars) 80 90 100 -0- AS LRAS (?) The short-run quantity of output supplied by firms will fall short of the natural level of output when the actual price level level…

Economic On April 27, 2023, the U.S. Bureau of Economic Analysis (BEA) released the data on GDP growth for the US economy for the first quarter of 2023 and revealed that the economy grew sluggishly by only 1.1 percent. Based on this report, suppose the U.S. consumers and businesses start to become pessimistic about the direction of the economy and eventually cut consumer and business spending, analyze using the IS-LM and AD-AS frameworks the short and long-run effects of such a shock on prices, output, and real interest rate.

Connect assignment O es Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Demanded (Aggregate Demand) Output Supplied (Aggregate Demand) Price Level 600 100 Price Level (average price) Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines. 900 800 700 600 500 400 300 200 100 0 0 $700 100 Aggregate Supply and Demand 200 $800 100 900 900 900 900 90 900 900 700 Real Output (quantity per year) Instructions: Enter your response as a whole number. a. What is the equilibrium price level? $ Tools AD D AS e b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600? O AS would have shifted to the right. O AS would have shifted to the left. O AD would have…

Q. 1 In a hypothetical economy, only the following transactions take place. firm M sells all of its product worth Rs. 12000 crores to firm N. Firm N sells its entire products to firm R for Rs. 19500 crores. Firm R sells his goods for final demand at Rs 27600 crore. Now calculate the followings: a) Value added by each firm. b) An indirect tax of 12% is levied on N's product. the burden of this tax is shifted to consumer. determine the market price of the goods for each firm. c) A subsidy of Rs. 75 crores are given to firm M. As a result, it reduced the price of its product. Determine the market price of output for all three firms.