Q: What limitations or challenges of The Big-Push Model and The O-Ring Model for developing countries?
A: Developing countries comprise majority of the WTO members. They are grouped developing countries and...
Q: Recently in the City of Seoul, building contractors lobbied the city council to pass an ordinace req...
A: Lobbying is any attempt by individuals or private interest groups to influence the decisions of gove...
Q: If this product is selling at $20, how much is being 25- 20- 15+ 10- 5. produced? 10 20 30 40 50 A 3...
A: Answer: According to the given graph, if the price is given on the y-axis and the quantity is given...
Q: Draw a set of reaction curves that result in an unstable equilibrium.
A: Cournot duopoly is characterized by the presence of two firms and these firms competes on the basis ...
Q: Determine the net present worth (NPW) of the cash flows given in table below for an investment oppor...
A: Given: MARR=12% Initial Investment=$100K
Q: The government will not set artificial rates on products.
A: The government does not regulate prices in the capitalistic economy with price controls. This will...
Q: How expenditure affects the economic growth and development?
A: In economics, expenditure refers to the income spent on purchase of various goods and services. It i...
Q: As an economic and accounting analyst, which of the two should a government pay more attention for d...
A: Exports refer to the sale of goods and services by the domestic producers to the customers in the fo...
Q: Price Quantity (dollars per demanded bushel) (bushels) 2,000 7 4,000 6,000 8,000 4 10,000 12,000 The...
A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation unde...
Q: A P2,000,000 loan was originally made at 8% simple interest for 4 years. At the end of this period, ...
A: * SOLUTION :- From the given information , The OPTION A is correct answer.
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 21 A company in the United States produces dog treats and sells them to consumers in France...
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Q: In the figure above, what is the total revenue at point A? A) $150 B) $20 C) $2000 D) $3,000
A: The measure that depicts the money that is being generated from normal operations of the business is...
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: 180 160 LA SF 140 120 100 80 60 40 20 0 1234 5 6 7 89 10 11 12 13 14 15 16 17 18 19 20 -LA 32 44 56 ...
A: A) When there is a current complete populace of 18 million then the harmony would be changed in orde...
Q: Question 17 The 1974 federal legislation that exempted emplovers from certain state laws governing h...
A: The 1974 federal legislation that exempted employers from certain state laws governing health insura...
Q: A young engineer borrowed P10,000 at 12% interest and paid P2,000 per annum for the first 4 years. W...
A: Simple interest depends on the chief measure of an advance or the first store in quite a while accou...
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: uestion 33 One shortcoming of the official unemployment rate is that it O a) is unreliable because i...
A: Labor force is the sum of people who are employed and people who are unemployed.
Q: Why monetary policy and fiscal policy are important macroeconomic tools used to stimulate the econom...
A: Monetary policy is important to control the money supply in a economy . Inflation and interest rates...
Q: The equilibrium price is $a loaf. The equilibrium quantity is loaves a day.
A: Equilibrium is the point where quantity demanded is equal to quantity supplied. QUANTITY DEMANDED = ...
Q: How does Philip's curve describe the relationship of inflation and unemployment? What are the critic...
A: Philip's Short Curve: - The reality between growth rates and unemployment rates is relàted to rela...
Q: Question 20 prices. Nominal gross domestic product (GDP) is GDP measured in O a) base O b) current O...
A: GDP is the value of all the goods and services in an economy at a given point of time. GDP is broadl...
Q: Suppose that good weather positively affects supply of bananas in Costa Rica. How a moderate shift i...
A: Elasticity of demand measures the responsiveness of quantity demanded to changes in the price level.
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: Question 2: A firm faces the following cost function: C(y) = 4y2 + 10, resulting in a marginal cost ...
A: C=4y2 + 10 Differentiate C w.r.t y MC = dC / dy => MC = 8y ------------------------- C=4y2 + 10 =...
Q: What role did Texas play during the Civil War? 1848-1865
A: The Texas Revolution, also known as the Struggle of Texas Independence, was a war conducted between ...
Q: What distinguishes comparative advantage from absolute advantage in production?
A: Production refers to conversion of raw material into finished goods.
Q: Describe what will happen and why to the firm’s costs and profits as the firm makes its choices. Emp...
A: In a perfect competition market a firm has only one major decision to make which is the amount of ou...
Q: Assume that the MC of producing steel does not include the cost of the damage to the environment as ...
A: In the market, it is given that the marginal cost of producing steel does not include the damage it ...
Q: The mean was found to be u = 70 so now we need to find the standard deviation o. The standard deviat...
A: σ=np1-p
Q: John Mill suggests that governments should promote the development of virtues that tend to increase ...
A: John Mills beliefs has bene on the moral theory also referred to the utilitarianism and it is the ac...
Q: 33. A man buys a house and lot worth P2,000,000.00 if paid in cash. He agreed to pay a down payment ...
A: Given; Total price of house and a lot= P2000000 Down payment= P500,000 Amount paid at the end of one...
Q: A product falls in price by 8% and total expenditure remains unchanged. What type of price elasticit...
A: The degree of responsiveness of the amount demanded of the good in reaction to changes in the consum...
Q: The quantity demanded of frozen strawberries decreased from 1,800 to 1,550 when the price of fresh s...
A: Cross elasticity of demand refers to the percentage change in quantity demanded of one good due to ...
Q: Given the Demand and Supply Schedule below, a) Demand Function b) Supply Function c) Equilibrium Pri...
A: DEMAND FUNCTION - IT SHOWS THE FUNCTIONAL RELATIONSHIP BETWEEN THE QUANTITY DEMANDED FOR A GOOD AND ...
Q: Can the developing countries escape from middle-income trap ? How ? Explained with comprehensive
A: Developing economies are defined as those economies which have lower human development index as comp...
Q: The following net transaction accounts and cash reserves at the Federal Reserve have been documented...
A: a. The average is calculated by summing up the net transaction and dividing it by the number of days...
Q: In 2020 in the United States, only about 10.8% of all workers belonged to a labor union. If union me...
A: Labor union: - it is an organized association of workers which workes for the welfare of workers. It...
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: Direction: Explain the PEST ANALYSIS Political: Economic: Social: Technological:
A: PEST ANALYSIS: The full form of PEST is Political Economic Social and Technology. This is used to m...
Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A. decreasi...
A: Diseconomies of scale means that the cost curve is upward sloping as we changes the factors of pro...
Q: A series of uniform accounts over an infinite period of time. Depreciation Annuity O Perpetuity Infl...
A: Depreciation refers to the rate of decline of capital stock. Annuity refers to a stream of income fr...
Q: Inflation measures based on GDP deflators take into account a smaller set of goods, compared to the ...
A: Better education, healthcare and gain of experience for entrepreneurs can improve quality of enterpr...
Q: provides a way (which is not able to be duplicated), for a firm to differentiate its product offerin...
A: * ANSWER :- Based on the given information the answer is provided below .
Q: Question 1: In each state, how many stable steady states are there? Question 2: In each state, which...
A: Introduction: Stagnation trap is characterized by the existence of both a liquidity and a growth tra...
Q: There are two main models explained in the chapter, i.e. the big-push model and the O-ring model. Ho...
A: A country having a less developed industrial base and a low level of Human Development Index with re...
Q: for the use of money; the amount of money paid for the use of borrowed capital. Annuity due Interest...
A: Whenever a individual borrows money, the amount has to be paid back with interest as a opportunity c...
Q: The subsequent figures show the evolution of the spread between the 10-Year Treasury Constant Maturi...
A: A Yield Curve is considered as a Forecasting indicator that interpret in real time. Yield curve is t...
Q: Price Quantity (dollars per demanded bushel) (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12...
A: At $6 the quantity demanded is 6000 bushels, at $7 the quantity demanded is 4000 bushels.
4.2
Step by step
Solved in 4 steps
- Consider the basic Keynesian-cross model (without government or foreign sectors), where themarginal propensity to consume out of each dollar of disposable income is 60 cents. Initially,autonomous consumption is $350 billion, and Planned investment is $150 billion. Then, animalspirits soar and businesses increase Planned investment to $200 billion. What is the change inequilibrium output (to the closest billion)?Many economic analysts believe that currently Indonesian economy is considerably below its potential output. Meanwhile, recent tensions in the Middle East potentially will potentially push the oil price upward significantly coupled with a significant fall in the world income. If Indonesia is an oil importer: a. What will happen to Indonesian national output? Demonstrate your prediction graphically using relevant models. b. What policy might you suggest to the government? c. Demonstrate the expected total effect of your advice using relevant models!Assume that four-sector model is at play. C+I+G. All expenditures are autonomous. Given: C = 700 + 80 (1-t)Y t = 0.25 I = 210 - 75i G = 1000 TR = 100 L = 0.20Y - 40i M/P = 800 Required: 1. Given your simulations above, what realizations do you have with respect to the macroeconomy.
- Question 3Part (a)In Japan, from the 1990s to the late 2000s, the interest rates fell to very low levels.However, this failed to stimulate consumption or investment spending. Use theaggregate expenditure model to explain what might have happened.Part (b)Suppose you are a highly regarded international economic advisor. You have beenasked to assess the possibilities of growth in an African country. It is a countryabundant in labour and some natural resources. The capital to labour ratio is low. Ithas a free market economy. You have found that this country does not have a verystrong and healthy banking system; however, the political system is stable and thegovernment does a good job protecting property rights. Assess this country’sprospects for growth. Recommend two things that would enhance the country’sgrowthWhich one of the following macro-economic variable should be excluded in a Keynesian model of a closed economy without government Select one: a. Investment b. Induced consumption c. Government spending d. SavingsConsider the intertemporal model with two time periods. Home is a small open economy thatcan borrow and lend in the first period at a fixed world real interest rate of r* = 4%. In thefirst period output is Q0 = 800. Because of a recession, output in the second period output isexpected to fall to Q1 = 500. The country wants to smooth consumption as much as possible.The country begins with no external assets or liabilities. Finally, assume that the intertemporalutility function at home isu(c0) + βu(c1)where β = 1/1+r*u is concave (i.e. consumers are risk averse and want to smooth consumption).(a) Solve for consumption, the current account, and financial account in the first period (t = 0).(b) Solve for the trade balance, current account, and financial account in the second period(t = 1).(c) Would Home be better off or worse off if the world interest rate is 1% instead of 4%?Explain using the appropriate equations.
- Consider the Solow Model. Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately and permanently from sbar to sbarprime . Assuming the economy (and hence the initial capital stock) is in its initial steady state, use the Solow Model to explain what happens to the economy over time and in the long run. Draw a graph showing how output evolves over time (put Y_t on the vertical axis with a ratio scale and time on the horizontal axis), and explain what happens to economic growth over time.1. Which of the following is not an assumption of the simple Keynesian model ? (a). We are in the short -run (b).Prices are constant (c).Output is demand -determine (d). Output is supply -determine (e). Aggregate output equals planned expenditure. 2. Which of the following is not one of the principal economic goals for the economy ? (a). Economic growth (b).Stable prizes (c). Strong national defense (d). Full employment (e). A strong cedi 3. Which is not a cause for business cycles considered by macroeconomists. (a). Greed (b) variations in optimism (c) shocks to money supply (d) shocks to technological ability 4. Which of the following question is of most interest for macroeconomics. (a). Why do foreigners immigrate to Ghana. (b).What is the appropriate stance of antitrust policy (c)Why is there inflation (d). What does the steel industry wants to tariffs 5. Which of the following statement is true ? (a). Final goods as produce in the same year as the related final good…I have to analyze, using the IS-LM model, the macroeconomiceffects of an increase in savings in the short term and its implications for long-term growth. Specifically, I have to suppose that households (consumers) lose confidence and start saving more for any level of disposable income. Can you plase answer the following question (using graphs where possible): In terms of total savings and, therefore, of potential long-term growth, is a flat LM curve or a positive sloping LM curve better?
- I have to analyze, using the IS-LM model, the macroeconomiceffects of an increase in savings in the short term and its implications for long-term growth. Specifically, I have to suppose that households (consumers) lose confidence and start saving more for any level of disposable income. Can you plase answer the following question (using graphs too): In terms of total savings and, therefore, of potential long-term growth, is a flat LM curve or a positive sloping LM curve better?Consider a 4-sector Keynesian model like that discussed in class with the following characteristics: exogenous consumption=10000, exogenous taxation=4000, government spending=5000, exports=5000, planned investment=2000. The marginal propensity to save=50%, the marginal tax rate (t)=30% and the marginal propensity to import (m)=20%. The potential output for the economy is 16000. Note that import demand is given by M=m(1-t)Y. 1. What is the output gap?Y5 Consider an AS-AD model for the U.S. Suppose an economic expansion in Mexico increases income for the average Mexican household. Mexico is a large trading partner with the US. This expansion would cause: a. the U.S. price level to rise and real GDP to fall. b. the U.S. price level and real GDP to increase. c. the U.S. price level to fall and real GDP to rise. d. the U.S. price level and real GDP to fall.