Q: Suppose the economy is operating at potential GDP when it experiences an increase in export demand.…
A: Increasing desire for products and services is created by an overactive market, that drives up the…
Q: Complete the table by indicating the change in each determinant necessary to decrease aggregate…
A: The aggregate demand is a measurement in economics which calculates the aggregate or total demand of…
Q: -Explain the relationship between the Keynesian consumption theory and savings theory and how both…
A: Keynes law of consumption states two important points : An increase in income is shared between…
Q: Explain how an upsloping aggregate supply curve weakens the realized multiplier effect from an…
A: AS refers to the total amount of commodities and services that are supplied in an economy during a…
Q: Which of the following tax policies is most likely to increase investment and long-run aggregate…
A: Taxes are the charge or fee imposed by the government on any economic activity. It tends to…
Q: If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 10, the mpc…
A: Here, given information is, Real output: 10,000 Income-expenditure multiplier: 10 MPC: 0.9…
Q: The following graph shows the economy in long-run equilibrium at the expected price level of 120 and…
A: Aggregate demand: the entire demand for products and services in a certain market.
Q: Identify which expenditure category each of the following will directly impact, and also which…
A: Answer - Need to find- Identify which expenditure category each of the following will directly…
Q: 5. An economy is initially in equilibrium, both in the short-run and in the long-run. Using the AD,…
A:
Q: Suppose an economy is at the short run equilibrium which its current output level called Y1, is…
A: The economy is at the short run equilibrium at income Y1 and the price level P1. At this point,…
Q: In the short run, when output is smaller than aggregate expenditure, which of the following…
A: The correct solution is option b.
Q: An economy with zero net exports is described below: C = 100 + 0.8 (Y – T) I p = 80 G = 140 NX =…
A: Given: C = 100 + 0.8 (Y – T) I = 80 G = 140 NX = 0 T = 170 The multiplier in this economy is 5.
Q: If the MPC in an economy is 0.80, government could shift the aggregate demand curve leftward by $48…
A: The fiscal and monetary policies are used by the governments to control the macroeconomic variables…
Q: For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium…
A: As per guidelines, we will answer the first three subpart questions. Autonomous planned expenditure…
Q: Ford announces that it will add 2000 salaried jobs to its Canadian workforce this month. The…
A: Average salary 50,000 Canadian Dollars Total employees to be employed = 2000 Total Money = 100000000…
Q: Instructions: Enter your answer as a whole number. If you are entering a negative number include a…
A: Answer- Given in the question-
Q: Instructions: Enter your answer as a whole number. If you are entering a negative number include a…
A: The aggregate supply is the total amount of services and commodities that firms in an economic plan…
Q: Which of the following could explain why a country’s aggregate demand curve might shift inwards to…
A: Components of aggregate demand are consumption, investment, government spending and net exports.
Q: Considering the goods market of the following closed economy - the economy is not necessarily in…
A: In macroeconomics, aggregate demand orefers to the total demand for final goods and services in an…
Q: Instructions: Enter your answer as a whole number. If you are entering a negative number include a…
A: AD has to increase by (480 - 400) = $80 billion.
Q: A closed economy was observed in two different years to be operating with levels of output at: (a)…
A: In a closed economy, there is no activity of trading with outside economies. This economy is…
Q: Suppose the economy is self-regulating, the price level is 132, the quantity demanded of Real GDP is…
A: It can be said that the economy is in short-run equilibrium as the aggregate demand (AD) is equal to…
Q: If the current short-run equilibrium level of output is less than full-employment output, we can…
A:
Q: Consider the closed-economy market-clearing model. Assume that the marginal propensity to consume is…
A: Here, it is given that the given economy is the closed economy with the MPC of 0.8.
Q: Suppose that the components of planned spending in an economy are C-500 +0.8(Y-T), I-1500, G-2000,…
A: Given C = 500 + 0.8(Y - T) I = 1500 G = 2000 X = 0 T = 0.25Y
Q: Assume a model with an income tax rate of t = 0.25 and a marginal propensity to consume of c = 0.8.…
A: Given the tax rate(t) as 0.25 and the Marginal propensity to Consume(c) as 0.8. One can calculate…
Q: Which of the following will shift the aggregate demand curve to the right? a.A new technology is…
A: Aggregate demand is the sum of consumption, investment, government spending and net exports in an…
Q: True or False: The economy is currently in long-run equilibrium. True False The economy is best…
A: Keynesian AD-AS model provides a framework for the determination of equilibrium level of output and…
Q: In the short run, the increase in consumption spending associated with the stock market expansion…
A: A stock market is a market place where stocks of companies are traded, including securities listed…
Q: If potential output $5,000 and current output is $4,500 then which statement would be true? The…
A: There are two kind of gaps in the economy: 1. Inflationary gap 2. Recessionary gap
Q: he U.S. economy is initially in short-run macro-equilibrium. Assume that China falls into a deep…
A: A recession is a macroeconomic concept that denotes a substantial drop in overall economic activity…
Q: Which of the following is true? A. Potential GDP decreases as the price level increases. B. At…
A: Aggregate supply refers to the entire amount of output that companies will create and sell—in other…
Q: In an economy with lump-sum taxes and no international trade, if the marginal propensity to consume…
A: In Keynesian economics, the change in aggregate demand is able to affect the output level and…
Q: Nigeria is currently experiencing a recessionary gap of approximately 24.6 billion in their…
A: Tax multiplier = MPC / 1-MPC Recessionary gap = Real GDP is less than potential GDP.
Q: If investment increases by 24 billion and the economy's MPC is 0 0.5, the aggregate demand curve…
A: Aggregate demand is the sum of the monetary value of all the goods and services produced in the…
Q: An increase in investment spending because companies become more optimistic about investment…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Starting with AD1 and AS1 in the graph below, an increase in capital stock would mean the: AS1 AS 2…
A: An increase in capital stock means , the business sector adds a sizable quantity of factories,…
Q: Suppose the country of Nickeltown decides to increase government spending. In which of the following…
A: When the country of Nikeltown decides to increase government spending ,then the policy would be most…
Q: The long-run aggregate supply curve touches the horizontal axis at a value that equals O Aggregate…
A: here we find the correct option as follow;
Q: Consider the economy described by the following equations: C = 1,600 + 0.9 (Y – T) I p = 800 G =…
A: C = 1,600 + 0.9 (Y – T) I p = 800 G = 1,600 NX = 200 T = 1,600 Y* = 29,000
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- Bangladesh Bank has created additional money worth Tk70,794 crore through various refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulating demand to revive the declining economy. Usually, banks disburse loans of Tk70,000-Tk80,000 crore every year following credit demand, but lending capacity is assumed to be less this year due to borrowers not returning money amid a shutdown of business activities. So the central bank expects that about Tk30,000 crore will come from banks this year. As a result, total Tk one lakh crore is ready to flow in the market, said a senior executive of the Bangladesh Bank. Bangladesh Bank has formed a refinancing fund of Tk25,000 crore to support banks in executing two stimulus packages of Tk50,000 crore, announced by the government for large and small industries. The central bank also formed a Tk5,000 crore pre-shipment refinance scheme to help export-oriented industries. Furthermore, the Export Development Fund…Bangladesh Bank has created additional money worth Tk70,794 crore through various refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulating demand to revive the declining economy. Usually, banks disburse loans of Tk70,000-Tk80,000 crore every year following credit demand, but lending capacity is assumed to be less this year due to borrowers not returning money amid a shutdown of business activities. So the central bank expects that about Tk30,000 crore will come from banks this year. As a result, total Tk one lakh crore is ready to flow in the market, said a senior executive of the Bangladesh Bank. Bangladesh Bank has formed a refinancing fund of Tk25,000 crore to support banks in executing two stimulus packages of Tk50,000 crore, announced by the government for large and small industries. The central bank also formed a Tk5,000 crore pre-shipment refinance scheme to help export-oriented industries. Furthermore, the Export Development Fund…D7 You run an oil company that wants to extract an oil reserve. The total stock of oil in the reserve is 600 barrels. You must sell all of the oil in two time periods, so the quantity extracted will be q1 +q2 = 600. The price per barrel you can sell the oil for is pt = 710 − 1 2 qt in each period. The cost of extracting a single barrel is not constant, but increases as more oil is extracted in a period, c(qt) = 1 2 qt. If the interest rate is 5%, how much oil will you extract in periods 1 and 2 if you wanted to maximize profits.
- Please solve and explain into detial Q3How to use this: bayes formular(Pr(h∣v=1)*P(v)))/ (Pr(h∣v=1)*P(v))) + (Pr(h∣v=1)*P( not v)))There is a recent issuanceof asignificant number of treasury sharesat a higher interest rate. How wouldthis affect businesses: A. Individuals and businesses are encouraged to save, hence businesses will expect lower demand and lower prices.B. Individuals and businesses are encouraged to save, hence businesses will expect higher demand and lower prices.C. Individuals and businesses are encouraged to spend, hence businesses will expect lower demand and lower prices.D. Individuals and businesses are encouraged to spend, hence businesses will expect higher demand and higher prices.
- Explain why D is not correct.Why is it important to keep potential output (Yn) steadily increasing over time?Current market conditions are as follows: spot rate (e) between dollar and pound is $1.33 = £1. The rate of return on 1-year domestic bonds (i$) is 1% and the rate of return on 1-year British bonds (i£) is 2%. What is the expected spot rate (ee) 1 year from now that eliminates any arbitrage opportunities given the current market conditions? (Round your answer to 2 decimals).
- If the initial cost of an investment project is not totally sunk (the project is not totally irreversible), one should not consider real options” True or False? Write a short answer that offers a discussion about the statement. (10%)In the special case when asset returns are independently identically distributed (IID) through time, how is the dynamic problem different from the buy-and-hold problem over the entire investment horizon?Jane, who works for the economic research department in a multinational corporation, is preparing a report for the advisory board of the company. The report intends to clarify in which country they should invest given the expected change in demand. The objective is, of course, to identify the country with greater change in demand. Jane analyzes countries A and B that currently have the same demand. She calculates the partial derivatives of demand with respect to income and finds that for country A it is greater than for country B. Demand in country A is measured in pounds and in country B in Kg. Can we conclude that if the only change expected in both countries is a change in income of 3.5%, then the company should invest in country A? no, we should calculate instead the income elasticity for the consumption of the good the company sells in each country. There is no statistic that can illuminate the advisory board on this problem. yes, because the derivative tells us that for each…