Automatic stabilizers have the effect of Group of answer choices eliminating all recessions. inflation. increasing the long-run supply curve. reducing recessionary gaps.
Q: List the first eight assumptions of the free market.
A: endsourceThe assumptions of the free market can vary depending on the source, but here are eight…
Q: The ultimatum game is a game in economic experiments. The first player (the proposer) receives a sum…
A: In the realm of game theory, a subgame perfect equilibrium (SPNE) is an enhanced version of a Nash…
Q: You like candy and cake. After using your entire $30 budget at the sugar store, you find that the…
A: Utility means satisfaction. Marginal utility is the utility derived from the consumption of an…
Q: If the interest rate is 2.5 % per month, What is the semiannual effective rate ? (Write the answer…
A: To determine the semiannual effective rate, we need to convert the given monthly interest rate into…
Q: (a) Conceptually define how r, and it differ from one another. Given this, provide some intuition…
A: (According to Bartleby guidelines we are allowed to answer only 1 question at a time if not…
Q: It is often said by economists that fixed exchange rates make monetary policy totally ineffective as…
A: The impact of fixed rates of exchange on monetary policies and the coherence of various policy…
Q: 1. Why do you think so many Americans are not included in the unemployment rate?
A: The unemployment rate is a proportion of the level of the labor force that is as of now jobless and…
Q: 6. Elasticity and total revenue I The following graph shows the daily demand curve for bippitybops…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: Refer to Figure 7-19. At the equilibrium price, consumer surplus is $100. $200. $50. $450.
A: Equilibrium in the market occurs at the intersection of market demand and market supply curve.…
Q: Suppose actual real GDP is $13.56 trillion, potential real GDP is $12.34 trillion, and the marginal…
A: Given Actual real GDP =$13.56 trillion Potential GDP =$12.34 trillion.Marginal propensity to consume…
Q: On May 26, 1991, Svensk Exportkredit (SEK), the Swedish export credit corporation, is- sued a Bull…
A: To calculate the yield to maturity (YTM) for an investor holding USD 10,000 in face value of the…
Q: Write in details with citation and reference the sub topic of ''security market equilibrium and…
A: Security market equilibrium and dynamic completeness are important concepts in the field of…
Q: pose, GDP at Market Price is $8,000 Consumption expenditure is $1800, Net exports = $600, Imports =…
A: The GDP refers to the value of the final goods and services that are produced during an accounting…
Q: Suppose the domestic real money demand amount increases by 16%, the domestic nominal money supply…
A: The quantity theory of money, or the monetary approach to exchange rates, makes the assumption that…
Q: Question 1 Explain fully how the equilibrium output, income, and employment are determined in the…
A: The Keynesian model of macroeconomic equilibrium, often referred to as the Keynesian cross model, is…
Q: The Whoville Marble Collective (WMC) makes fancy marbles for picky Whos. WMC's output is given by Q…
A: The production function determines all the input bundles that produce the same output level.The…
Q: Give only typing answer with explanation and conclusion The elasticity of the house value with…
A: elasticity of the house value with respect to the concentration level of PM10= (% change in the…
Q: Using the World Bank data base, (data,worldbank.org) select four economic variables of interest and…
A: The world's economy has been growing promptly throughout the course of the past two decades,…
Q: a. What is the value added at each stage? Stage 1: $ Stage 2: $ Stage 3: $ Stage 4: $ b. How much…
A: ***For subpart C, no information is given on the cost of the imported lumber. Without that…
Q: Consider the market for some product X that is represented in the accompanying demand-and-supply…
A: A measure of the net benefit that society gains from the exchange of goods or services is termed…
Q: Based on your article review and research above, carefully reflect on and give your opinion on the…
A: The article discusses the concept of the "developing world" and questions its usefulness and…
Q: The table below shows an income tax schedule, expressed in nominal terms, for the year 2014. Taxes…
A: Inflation refers to the rise in the general price level of the goods and…
Q: 8) Which of the following is not a characteristic of a perfectly competitive market structure? A)…
A: In a perfectly competitive market structure, all the following characteristics hold true:-
Q: xplain the expenditure measure of GDP. What is the underlying assumption of this measure? Provide…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 5. A small open economy is described by the following equations: 40+0.8(YT) C = I = 200-15r NX = =…
A: The equilibrium exchange rate means the exchange rate at which the demand for a currency equals its…
Q: Why is it -1000 and not -10,000?
A: Here, define Cost and benefit analysis as in the previous answer
Q: ___ occurs when insurance companies structure plans that provide an incentive for healthier…
A: Insurance is a contract between an individual(policy holder) and an insurance company. It is a tool…
Q: 5) Externalities can be produced by A) efficient markets; inefficient markets C) consumers; firms D)…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Conduct a web search and summarize the core-periphery spatial relationship of each of the four (4)…
A: The core-periphery spatial relationship refers to the economic and spatial divisions between core…
Q: The federal government is considering to build a parking lot on what used to be a forest. These are…
A: Discount Rate=34%Costs:Years01234CostsConstruction of parking lot153170Foregone…
Q: Teens 4 and 8 are smitten with each other but neither knows of the other's feelings Suppose the…
A: In game theory, a pure strategy Nash equilibrium is a situation in which each player in a game…
Q: Ok I am not agreeing with answer D in this question. Can somebody explain why is not answer C?
A: from the given data, we can surmise that the market is such that there's at least a profitability of…
Q: Consider the game Ms. Bennet and Mr. Darcy play in ‘First Impressions’, Selected Set V. Suppose that…
A: To write down the strategic form game for the scenario described in the question, we need to specify…
Q: Question 3 Assume that an economy has an inflationary gap. Compare the use of fiscal policy with the…
A: An inflationary gap refers to a situation in an economy where the level of aggregate demand exceeds…
Q: hich of the following statements regarding a profit-maximising monopolist is FALSE? O a. This firm…
A: Profit maximization describes the goal or objective of a firm to maximize its profits or financial…
Q: Calculate the price elasticity of supply for Belinda's Bakery's banana bread. When the price changes…
A: Price elasticity of supply measures the responsiveness of the quantity supplied of a good or service…
Q: Describe this graph in words and in terms of the fisher effect
A: A bond is a financial instrument that represents a loan or debt obligation. It is a fixed-income…
Q: opose you have $10,000 to invest in one of the following projects. ject Alpha requires an initial…
A: Cost-benefit analysis (CBA) refers to an approach that helps in evaluating the costs and benefits…
Q: 1.7 The hypothetical information in the table below shows what the values for real GDP and the price…
A: GDP that is Gross Domestic Product refers to the monetary value of the final goods and services…
Q: a) Define and calculate price elasticity of demand using the mid-point method. b) Discuss the…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Explain how beliefs and opinions can shape government economic policy decision making
A: Economic policies refer to the set of policies related to the government expenditure in the economy,…
Q: If a demand shock causes AD to increase, and with it some inflation to occur in the short run, then…
A: Demand Shock: A demand shock refers to a sudeen change in aggregate demand (AD) in the economy. It…
Q: Jane's Island's production possibilities are: Corn (kilograms per month) 3 2 1 0 and and and and…
A: The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…
Q: Suppose some country had an adult population of about 50 million, a labor-force participation rate…
A: The total number of individuals who are either employed or actively seeking employment in a…
Q: Suppose Darcy has promised to mow his mum's lawn, either this Saturday (t-1), Saturday week (t=2),…
A: To determine Darcy's preferred period to mow the lawn based on his hyperbolic discounting…
Q: A temporary "supply shock" will Select one: a. cause AD to shift down (or decrease). b. cause AD…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. Short…
Q: Problem 21 Suppose Darcy has promised to mow his mum's lawn, either this Saturday (t-1), Saturday…
A: Given:δ = 1,δ = 0.65,u1(0) = 10,u2(0) = 15,u3(0) = 20,u4(0) = 25,ut(1) = 0.
Q: xplain fully how the AS/AD model is an update of the Keynesian model. Provide a graph of the…
A: This question is asking about the relationship between the AS/AD model and the Keynesian model, and…
Q: Price (dollars per battery) 20 18 16 14 12 10 8 0 A Sus World price + tariff World price Dus 100 300…
A: The amount of tariff per unit is the difference between the world price with tariff and the world…
Q: In an oligopoly decisions of a firm's manager Select one: a. is independent of other firms'…
A: Oligopoly refers to a market structure characterized by a small number of dominant firms that have…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Automatic stabilizers: A) counteract both recessions and expansions through changes in spending without government action. B) are government programs to employ workers during recessions. C) create government budget surpluses during economic recessions. D) are designed to reduce the price level directly.Contractionary fiscal policy is designed to combat demand-pull inflation and consists of a decrease in government spending and/or an increase in taxes. Group of answer choices True FalseAutomatic stabilizers a)increase consumption during a recession above what it would otherwise be in their absence. b)make GDP more volatile. c)reduce the budget deficit during a recession. e)decrease consumption during a recession below what it would otherwise be in their absence.
- Automatic stabilizers are included in discretionary fiscal spending. cause spending to decrease during a recession. help to moderate the extremes during the business cycle. are zero at full employment.Automatic stabilizers (a) Are government policies or programs that stabilize the economy without additional government action. (b) Include the progressive income tax and the negative income tax proposed by many economists. (c) Are favored by many economists because of the difficulty of getting the timing right using discretionary macroeconomic policy. (d) All the above (e) None of the above.43. Automatic stabilizers: Group of answer choices work without the need for decisions from Congress or the White House increase taxes during recessions magnify fluctuations in the economy. require explicit actions by policymakers to become active
- During a recession, automatic stabilizers cause the federal deficit to Group of answer choices decrease. remain unchanged. either increase or decrease. increase.Which statement below is NOT true regarding government intervention in the economy? Progressive income tax is a form of automatic stabilizer. If the economy is doing badly, the government should cut spending to improve it. Most suggest that government should promote macroeconomic stability. Unemployment insurance is an automatic economic stabilizer.If the government were to implement a fiscal policy during a case of recession, all of these proposal are in line with the goal of fighting recession EXCEPT lowering income tax increasing government spending and lowering income tax increasing both government spending and income tax increasing government spending When there is a problem of a delay in terms of implementation of the fiscal policy, that would be categorized as _____. execution lag information lag decision lag
- Expansionary fiscal policy will: a shift the aggregate demand curve left. b shift the aggregate demand curve right. c shift the short-run aggregate supply curve left.Several problems of timing may arise in connection with fiscal policy. Which of the following is not one of them? Select one: a. An administrative lag occurs due to a significant lag between the time the need for fiscal action is recognized and the time action is taken by a government. b. Operational lag also occurs between the time fiscal action is taken and the time that action affects output, employment, or the price level. c. Crowding out lag occurs since governments delay to take action for not to crowd out exports. d. The recognition lag is the time between the beginning of recession or inflation and the certain awareness that it is actually happening.The most important automatic stabilizer is: a. accurate economic forecasts. b. the central bank. c. the tax system. d. government spending.
