15. Explain why for countries with a large spending rate (such as the United States), errors in estimating the spending rate lead to relatively larger errors in predictions of the economic impact (compared to countries with lower spending rate). Make up an example to support your reasoning.
Q: Class Activity 3 9" February 2022 1. The table below shows the marginal benefit or Utility (MU) sche...
A: Given:
Q: Which of the following statement is true? A. Marginal Utility is the additional satisfaction gained ...
A: As per the law of diminishing marginal utility, the value a customer is ready and able to pay for th...
Q: Are the statements true or false. please correct my ansers and justify Suppose that at the equilibr...
A: 1. True It is true if the market price of the product is below the market equilibrium price and the...
Q: Define what is meant by (pure) credit rationing. Save Answer
A: Rationing is a source of artificial control on the demand and supply of the goods and services.
Q: 6.The standard Solow growth model assumes: a. The depreciation rate is a choice. b. The capital-ou...
A: The Solow growth model can be explained as the model of long-run economic growth. A major component ...
Q: Problem 1. The table below shows the demand and supply schedules for gum: Quantity Demanded (million...
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...
Q: Consider Jane's utility function: U = X0.5 + 0.5y with her income of M and prices, P & Py. Derive he...
A:
Q: he Additional Insured—Vendors (HO 07 51) endorsement to a homeowners policy extends the definition o...
A: An additional insured means in a liability policy broadens the inclusion past the named safeguarded ...
Q: Consider the following scenario. Aggregate output y at date t is specified as follows, where the tre...
A: Output Equation in the economy - yt = πt - πte + y⏜ Where πt = Actual inflation rate , πte = Expecte...
Q: On the Virus island the inverse demand function for masks is given by the formula P=360-Q, where P -...
A: We know that price is determined by the market forces demand and supply curve at its intersection at...
Q: 2. The following hypothetical table is John's demand for pandesal from Dec 2016 to January 2017 give...
A: The economics as a study is based upon the basic idea of scarcity, or the limit present to the amoun...
Q: 1. if you are in vietnam, please quote direct and indirect rate from thai baht and for cash and both...
A: Introduction In the question, different countries buying and selling rate were asked, like 1) when i...
Q: 1. Consider the market for cell phones in Celltown. Suppose that the inverse demand curve is P = -2Q...
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only ...
Q: c) A sample of 20 observations was divided into two equal sets after arranging for the independent v...
A: Given Information: Set 1: y^=1.053+0.8760xResidual sum of squares = 3.8128Sample size (n1)=10 Se...
Q: Milton Friedman, who won the Nobel Prize in economics, characterized inflation as being "high and va...
A: Milton Friedman Noble Laureate in economics termed inflation as high and variable. Such characterist...
Q: At present, a foundation that has 6 million deposits in the bank with the interest of 10% compounded...
A: The monetary payment made for the privilege of borrowing money is known as interest, and it is usual...
Q: The ratio of the interest payment to the principal for a given unit of time and usually expressed as...
A: Simple interest => p*r*t/100
Q: .- (1+)" - 1 %3D PART A.) Find the effective annual interest rate for a credit card that lists an AP...
A: Introduction: The annual percentage rate (APR) is the yearly interest earned by an amount charged to...
Q: •Consider the exogenous growth Solow-Swan model. An increase in the sav- ing rate increases the "bal...
A: When we will be going to discuss about the solow growth model which can be exogenous can be consider...
Q: A firm is a profit-maximizing monopolist in the market of a patented computer software. As an econom...
A: At profit-maximizing quantity, marginal revenue is equal to marginal cost.
Q: 14. The "big tradeoff" refers to A. producing capital goods instead of consumable goods. B. marginal...
A: Tradeoff means choice. An economy has a limited amount of resources to meet the unlimited wants of p...
Q: Given the cash flows in table below. Determine the value of P. i= 6% per year Year 0 1 ...
A: Given:- i=6%[Internal rate of return] To determine:- Value of P=? Please find the image attached bel...
Q: The consumer surplus from a good is measured by the A) area of the triangle above the market price l...
A: We know that the marginal benefit is the additional benefit received by consuming one additional uni...
Q: The graph below shows the budget constraint between income and leisure for an individual. For every ...
A: If the individual consumes 4000 hours of leisure he will earn $0, but if he does not consume any lei...
Q: Domestic Market Supply and Demand: QD = 90 – 3p QS = 2p Find the domestic market equilibrium. Gra...
A: Given Domestic demand function: QD=90-3p ... (1) Domestic supply: Qs=2p Since you have poste...
Q: use a graph to illustrate if the event changes demand.
A: According to the law of demand when price increases quantity demand decreases accordingly and vice v...
Q: In macroeconomics, how can you tell when someone has worked too hard or too little during a period ...
A: Introduction inflation generally mean that prices becomes high and purchasing power becomes low, in ...
Q: Problem and Application 2.1 The market for pizza has the following demand and supply schedules: Pric...
A: Here, the given table shows quantity demanded and quantity supplied of pizza at different price leve...
Q: Consider two Solow economies (A and B), exactly identical except that economy A has a higher share o...
A: This is a model of exogenous economic growth. It studies how changes in population growth, savings r...
Q: Does the absolute PPP imply the relative PPP? What about the other way around?
A: Introduction PPP - Purchasing Power Parity According to absolute PPP, the price of a basket of g...
Q: Offshoring of Goods and Services – End of Chapter Question Consider a U.S. firm's production of auto...
A: The Production possibility frontier seem different when one nation has a much of one factor. One ou...
Q: Per the graph below, what is the equilibrium price and quantity? Use only the numbers written on the...
A: Equilibrium quantity is decided when the quantity demanded is equal to the quantity supplied. In the...
Q: 4. Number the following demand curves from highest to lowest elasticity.
A: Elasticity is ranked from minus infinity to zero 1. perfectly elastic shows highest elasticity = -∞...
Q: wth model differs from the Harrod-Domar because: a. Assumes that deprec
A: In Solow model , the poor countries grow faster than rich countries which lead to convergence of per...
Q: In a model with no government or foreign sector, if autonomous consumption is c30, investment is 150...
A: MPC is the Marginal propensity to consume which shows the ratio of change in change in consumption t...
Q: Which of the following price elasticities of demand would indicate inelastic demand? O 1 O 10 O 0.5 ...
A: Price elasticity measures the responsiveness of demand of a good to its change in price of that good...
Q: Use the information below to find the missing information. Chase Bank Liabilities Assets Total Reser...
A: The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto, rat...
Q: Question 43. Signs at gas stations are designed to be able to quickly and easily change the posted c...
A: Inflation refers to a rise in prices.
Q: mazon sets a demanding pace on the job Adapted from: Byers, S.M. & Stanberry, K. (2018). Business...
A: Given to visit Amazon distribution center: A)To find the requirement to walk an average of eight or ...
Q: Typically, the largest percentage category in the consumer price index (CPI) is O a) food and bevera...
A: CPI measures the value of goods and services that are bought by a typical consumer.
Q: c. Suppose that eqm C in India under FT is 8 tons of textiles and 2 airplanes. Check that this is po...
A: a. For India opportunity cost of 1 unit of airplane is 3 units of textiles. For US, opportunity co...
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are ...
A: The markets are the place where the buyers and the sellers of goods and services, and other products...
Q: Instead of paying P100,000 in annual rent for office space at the beginning of each year for the nex...
A: Loan amount= P1000,000 Number of years= 10years Interest rate= 6% Amount invested= P100000 Interest ...
Q: Suppose that the economy of a small nation has an electronics industry, a steel industry, and an aut...
A: * SOLUTION :-
Q: Hey can someone help me with this? Explain the main differences between amortization, annuity and in...
A: The term loan refers to a form of credit vehicle within which a complete of money is Lent to a diffe...
Q: A perfectly competitive firm is currently maximizing profits. The market for its product is in a lon...
A: Perfect competition market is the form of market structure where large numbers of buyers and sellers...
Q: The bank chargers a normal interest rate of 16.5%per annum, at a compounded at the end of every seco...
A: Given: Nominal Interest rate=16.5% Compounding done=at end of every 2nd month
Q: As shown in Exhibit 3A-1, if the market price falls from $3.00 to $2.00, then area disappears. O ABE...
A: Deadweight loss, also known as excess burden, is a measure of lost economic efficiency when the soci...
Q: Depict the following scenario using a graph. Assume that MLB goes from having free agency in their l...
A: Introduction monopsony is the market when there is a single employer in the labor market. Because th...
Q: Which of the following two types of unemployment occur even when the economy is healthy and growing?...
A:
Knowing that:
The formula for economic impact is I(r)=(A)/1-r ---(i)
The formula for impact change is ∆I= I'(r)*∆r ---(ii)
The formula for percentage change in spending is g(r)=(r)/1-r ---(iii)
Answer-
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Without looking at Table 19.7, return to Figure 19.10. If we define a recession as a significant decline in national output, can you identify any post-1960 recessions in addition to the 20082009 recession? (This requires a judgment call.)Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What Impact would that have on GDP, unemployment, and inflation?How would a dramatic increase in the value of the stock market shift the AD curve? What effect would the shift have on the equilibrium level of GDP and the price level?
- 1. Answer the following: A) In 2011 the United States economy had a GDP of $14,991 billion according to the United Nations. If consumption was $10,729 billion, government spending was $2,594 billion, and net exports was -$568 billion, how much was investment spending? B) In 2011 the United States economy had a GDI (Gross Domestic Income) of approximately $13,548 billion according to the Bureau of Economic Analysis. If wages were $8,340 billion, interest payments were $516 billion, and rent was $430 billion, approximately how much was remaining for profit?Suppose you are given the following data for a particular economy (unit: Millions of Euros):Gross National Income mp (GNImp) =1650Investment (I) = 220(Iliq) Net investment = 210Private consumption(C) =1100Net External Income (NEI) = 0Net Indirect Taxes (NIT) = 231Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)36- : What is the name of the expenditures made independent of income level? a) Autonomous export B) Autonomous spending NS) Total expenditure D) Autonomous investment TO) Autonomous import
- Consider the following hypothetical data for the U.S. economy in 2018 (all amounts are in trillions of dollars; see pages 179–182).Consumption 11.0 Indirect business taxes .8 Depreciation 1.3 Government spending 3.8 Imports 2.7 Gross private domestic investment 4.0 Exports 2.5e. Based on the data, what is GDP? NDP? NI?f. Suppose that in 2019, exports fall to $2.3 trillion, imports rise to $2.85 trillion, and gross private domestic investment falls to $3.25 trillion. What will GDP be in 2019, assuming that other values do not change between 2018 and 2019?What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?1. a. Write the components of GDP (from the table) according to the expendituremethod. 1. b. By using the expenditure method, calculate GDP for years 2018 and 2019. 1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and thedemand falls drastically when prices are flexible, how would “Changes in inventories”account respond this? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721
- The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases $350B, GDPI $150B, Exports $150B, Imports $100B, Depreciation $50B. a) what is the value of GDP and NDP? b) what is the value of Net private Domestic investment ? c) suppose that in the next year exports increases to $175B, imports increase to 200B, and consumption falls to 350B. What will GDP be in that year?Assume taxes are zero and an economy has a consumption function of C = 0.56 (Yd) + $777.68. By how much will GDP change if net exports change by -411.26? Round your answer to two digits after the decimal.1. If imports are $2 trillion, exports are $1.9 trillion, consumption is $3.8 trillion, investment is $700 billion, and government spending is $1.1 trillion, how much is GDP? 2. If consumption is $2.5 trillion, investment is $900 billion, government spending is $700 billion, imports are $1.2 trillion and exports are $1.4 trillion, how much is GDP? Example: If GDP rises from $6 trillion in 1994 to $8 trillion in 1999 and the GDP deflator in 1999 is 110, find real GDP in 1999 and find the percentage increase in real GDP between 1994 and 1999. First, we are asked to find real GDP in 1999. To do this we divide the nominal GDP, which is $8 trillion ($8,000 billion), by the GDP deflator for 1999, which is 110. This then is multiplied by 100. Real GDP in 1999 is $7,273 billion or $7.2 trillion. To find the percent change you must find the difference of real GDP between 1999 and 1994. Change in GDP = 7,232 – 6,000 = 1,232 You then take this difference and divide it by GDP in…