An economy has a + 4% output gap, what is its cyclical unemployment ? What is the phase of the business cycle ?

Q: The demand for tobacco is price inelastic. Suppose there is a drought that destroys a large portion…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price. Lesser…

Q: Firm XYZ produces specialty widgets using labor and capital. The table below shows the productivity…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: Illustrate and explain how a new round of fiscal expansion in Europe due to the negative…

A: The Russian invasion of Ukraine will have a significant impact on economic activity and inflation,…

Q: 2. During a recession, people may lose their jobs. Newly unemployed people must conserve their…

A: Recession is a time period in the economy when there is a continuous fall in the output.

Q: Refer to Table 7.9 and Figure 7.7 above. What is the marginal gain in output from increasing the…

A: Answer to the question is as follows:

Q: Xolani wishes to mark out a rectangle for his chickens using the wall of his house as one of the…

A: Xolani wishes to mark out a rectangle for his chickens using the wall of his house as one of the…

Q: Macroeconomics 1. Disruption to the supply of natural gas to Atlantis has caused a surge in energy…

A: Inflation refers the continuous surge in the price level in an economy. As per given information…

Q: Which is the correct answer ? Suppose there are 10 apples and 10 oranges in the economy. Joe is…

A: The correct answer is - A. A decrease in the orange price relative to the apple price.

Q: Dweck and colleagues have conducted numerous studies across numerous domains to show fixed versus…

A: In the short term, the fixed attitude keeps you from failing, but it hampers your capacity to learn,…

Q: The government announces a cut in the income tax rate. Use the AD/AS model to analyse the short-run…

A: AD-AS model determines the equilibrium GDP and price level in the economy.

Q: If there is a high rate of inflation (as well as an ample money supply), this finding is associated…

A: In economics, there are numerous principles applied at the marketplace based on different markets…

Q: Which of the following events would contribute to economies of scale? O Large supermarkets being…

A: Economies of scale refers to decrease in average cost as production increases.

Q: Consider the AA-DD model with flexible exchange rates. Assume the economy is initially at full…

A: Government Spending is defined as the kind of spending on the public sector, and provides services…

Q: employee in the labour discipline model? O The game is a simultaneous game in which the employer…

A: The wage theory held that wages relied upon the general measures of capital accessible for the…

Q: An organization completes the purchase of new asset at a cost of $25,000. It has an yearly operating…

A: To find the annual savings which would provided rate of return of 10% , we will find the present…

Q: Economics Question

A: A game tree refers to a graph that represents all possible game states inside a game in…

Q: In February 2022 the €S (euro/dollar) exchange rate was 0.88E/S. In France, a country that uses…

A: The rate that depicts the rate of one currency being measured in terms of another currency for…

Q: c) Show that the following production function exhibits increasing returns to scale Q = 20K*L² Where…

A: Returns to scale is a long-run concept, during this time interval both the capital and labor can be…

Q: Consider two similar restaurants In dose proximity to each other on etther side of the U.S.-Mexico…

A: The dollar depreciates against the peso, which implies the peso appreciates. This means that…

Q: a) Explain the reason(s) why bond ratings and interest rate spreads on bonds differ. Which measure…

A: The credit quality or creditworthiness of government-issued bonds or corporate-issued bonds is…

Q: country M has always have an inflation of roughly 2% for many years alrdy, however due to a shock of…

A: Inflation Inflation is considered as an increase in the level of price and the cost of living in a…

Q: .In the Solow model of economic growth, a country with a higher rate of capital  depreciation will,…

A: Solow model of long run equilibrium propounds a steady state achieved at the point where the…

Q: to what extent is incone in equality a result pf choices made by the individual?

A: The word "income inequality" refers to a situation in which members of various groups have uneven…

Q: Consider the quantity competition between two firms, A and B, in 380 — 2QA - Qв, where P denotes the…

A: We have two firms with different marginal cost of production.

Q: Question 1 of 10 Which of the following is not a common tactic scammers use to get their victims to…

A: Scammers are the persons who take our money by using different tactics. They do fraud with us. At…

Q: Consider the following information: TC = 15 + 5Q + Q² Q = 30 – P Where TC is total cost, Q is the…

A: Profit maximizing refers to a scenario at which a firm is maximizing its profit. It is the level of…

Q: The average consumer at a firm with market power has an inverse demand function of P 10 - 2G The…

A: Given:P=10-2QC=5QNow,MC=∂C∂QMC=5

Q: The interest rate commonly used by banks to borrow from each other outside the US, which is also…

A: When talking about lending and borrowing activities, banks can exchange money among themselves to…

Q: If the price of a good or service is lowered and people buy more of this good or service, this…

A: An economic system's output is goods and services.Services are actions done for the benefit of the…

Q: Question 1 Given the following data on simple closed economy: C = 10 +0.75 Y %3D I= 20 G= 40 where C…

A: Equilibrium in the goods and services market occurs where aggregate expenditure equals income

Q: When the Fed implements policy to prevent problems before they happen, it is called policy. O…

A: In the United States, Fed implements economic policies to deal with market uncertainties or market…

Q: Firm A operates in a perfectly competitive industry with price given by P = %3D $23/unit. Firm A's…

A: "A firm in a perfectly competitive industry is a price taker and can not influence the price."

Q: The GDP per capita of Greece was $22,494 in 2012 and $21,966 in 2013. Based on these figures, the…

A: Given, The GDP per capita in 2012 = $22,494 The GDP per capita in 2013 = $21,966 Mathematically, the…

Q: Offer an example of a good or service with a negative externality. What is the externality of the…

A: The expense or detrimental impacts of an action on a third party are known as negative…

Q: Consider a consumption function of C = 0.75 (Y – T). a) If government spending increases by $300…

A:

Q: Problem 4. Equilibrium interest rate and exchange rate.( Using the framework relating money…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: QUESTION 12 What condition(s) are necessary for disequilibrium unemployment to exist? O a. Wages to…

A: 12. In the market, disequilibrium refers to the situation when there is a mismatch between market…

Q: 4/ Julieta and Eric are purchasing a home. They wish to save money for 15 years and purchase a house…

A: When you borrow money or put money into a savings account, compound interest (also known as…

Q: 11. Assume that in an economy the total money supply, Ms, is SR100; the quantity of output, Q, is 50…

A: The formula for finding the income velocity of money is V = (P * Q) / M where, P is the price of…

Q: (i) Discuss the Lucas Critique.

A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…

Q: The daily demand for movie rental from a movie theatre operator Silver Screen is given by the…

A: Revenue maximization is a theoretical goal of a company that aims to sell at a price that maximizes…

Q: Steve has the utility function U(ci, c2) = c + 2c/where ci is his consumption in period 1 and ci is…

A: We have interest rate =0.1 and utility function is an interteporal utility function.

Q: Chose the trrue statement.   a. Sincce the mid 1800ss , Unitedd States of America has experienced…

A: The answer is - c. The Clarrk-Fisher hypothhesis implies that as productivity increases in one…

Q: What tells you the profit a company makes on each item it sells? ROA EPS O ROS O ROE

A: Profit is the difference between the tital cost incurred in the production process and the tital…

Q: Bridgman is a candy maker who uses machines that generate noise and doctor next door whose…

A: Manufacturing is the transformation of raw materials or components into completed things using…

Q: (b) An investor's utility function is given by: U(w) = In(w 2 ) where w is the investor's level of…

A: U = ln(w2)

Q: A government uses an expenditure-reducing measure to correct a balance of payments current account…

A: The measure that depicts the difference between the outflow of money to the rest of the world and…

Q: What type of good is rival and nonexcludable? O private goods O club goods common resources Opublic…

A: Goods are said to be rival in nature if consumption by one person decreases the amount of goods…

Q: Discuss in detail the limitations of the IS-LM Model. Why is it unrealistic for today's economies?

A: IS-LM  In the IS LM curves of equilibrium, (IS) is the goods market and (LM) is the money market.…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.