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- Suppose governments increase spending for Social Security pensions. Explain why the increased government spending for pensions will not appreciably increase government purchases of productive resources or the products of business firms.A consumer's current income (y) is 200 and the future income ( t.') is 240. A current lump sum tax (t) of 10 is paid and the tax in the next period (t) is 15. The real interest rate is 20% for each period. Please assume that current and future consumption are complements. and the consumer always prefers to have one unit of current consumption and two units of consumption in the future. Calculate the optimal current and future consumption and the optimal current and future savings. Is the consumer a lender or a borrower? How does he she. as a lender or a borrower. affect the future consumption?You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)
- The COVID-19 pandemic has substantially affected the Canadian economy in several dimensions.As the Canadian governments, both federal and provincial, have issued various forms of “stay home”instructions, workers have to work from home. Working from home has two effects: firms are nowless productive and hence the current TFP z declines; labor supply N s(r) declines. In addition,consumers can only go grocery once a week and hence consumption demand Cd(r) declines for anylevel of interest rate and income. Answer the following question. Use a real business cycle model that we studied in Chapter 13 to analyze theimpact of Covid-19 in terms of output, employment, consumption, investment, wage, interestrate, money demand, and price. Make sure you show three figures: A figure illustratingthe goods market, a figure illustrating the labor market, and a figure illustrating the moneymarket. (In this question we assume that the change in output supply dominates the changein output demand, and the…2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve subparts d,e thank u7 Consider a model in which an individual lives only two periods. This person has diminishing marginal utility of consumption and receives an income of $20,000 in period 1 and an income of $5,000 in period 2. The private interest rate is 10 percent per period, and this person can borrow or lend money at this rate. Also assume that this person intends to consume all of his income over his lifetime. a. Give a hypothetical numerical example of what a person’s optimal consumption would be over these two periods. In answering this question, what assumptions did you make?
- 2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve sub parts a,b,c thank u3.Minimizing costs implies that which of the following conditions are true? (check all that apply) a. MPL/w=MPK/r b. Q=wL+rK c. MPL=w d. MPK=r e. MRTS=w/rKindly assist with those two questions Use the image attached to answer question 1 1)Which of the following can cause the relationship shown between MSC and MPC? a) An increase in cases of astha due to pollution . b) a decrease in financial instability from unlawful investing c) An increase in investment to support education funding. d) A decrease in air pollution caused by a nuclear energy plant. e) An increase in research and development funding of a product. 2) The president of a small business is provided with the following options to improve his company by a consulting firm. Based on the data provided,which option should he choose? Cost( thousands of dollars) benefits (thousands of dollars) OptionA 10 50 Option B 50 100 Option C 120 150 Option D 5 15 Option E 125 200 a) option A b) option B C) option C d) option D e) option E
- The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) Q. How much will the demanded quantity change if the price of apples increases to 1.5? a. It will decrease by 0.4 million kilos. b. It will decrease by 0.5 million kilos. c. It will increase by 2 million kilos. d. It will increase by 0.5 million kilos. e. All the other answers are wrong.According to the "advance" estimate from the Bureau of Economic Analysis, by how much did the United States' real GDP increase in the third quarter of 2023? 4.9% 2.5% O 7.6% -4.3% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.12. Given this diagram of Consumption and Savings functions, What will be the level of savings at an income level of 60? 6. Given this diagram of Consumption and Savings functions, What will be the level of savings at an income level of 20? 07. Given this diagram of Consumption and Savings functions, What is the level of total desired consumption at income level of 80? 8. Given this diagram of Consumption and Savings functions, What is the level of "induced consumption" at income level of 40