Describe the differences between recessionary and inflanationary gaps.

Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…

A: The impact of change in aggregate demand due to the change in government spending is more than that…

Q: Consider the local cable company, a natural monopoly. The following graph shows the monthly demand…

A: A monopoly refers to that market scenario which consists of a single seller and the optimal…

Q: The law of demand for foreign exchange tells us that other things remaining the same, Select one: O…

A: Changing one currency for another is possible in the foreign exchange market. The amount that can be…

Q: Starting from a long run equilibrium, without any policy intervention, the long run impact of a…

A: Supply shock: A supply shock is an unexpected event that disrupts the supply of goods and services…

Q: uppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Great…

A: Open market purchase is a tool of monetary policy that is used by central banks to regulate economic…

Q: 1. Nash Equilibrium: Find all Nash equilibria for the game below. (row player, column player) | Left…

A: Nash equilibrium is a concept in game theory that describes a situation where each player in a game…

Q: Suppose Janet is a single parent with one child, and she is trying to determine the effect of…

A: Implicit marginal tax refers to the reduction in a person's effective income resulting from…

Q: The sum of the marginal propensity to save and the marginal propensity to consume Select one: A.…

A: MPC stands for marginal propensity to consume. This measures the net change in the consumption…

Q: Suppose the markets for goods and services is in disequilibrium And GNP is too high (to the right…

A: Gross National Product ( GNP) refers to the market value of the final goods and services produced in…

Q: Suppose the New Orleans city council passes a price gouging law: during a hurricane, the price of a…

A: Price Quality Supplied Normal times Quantity demanded Hurricane Quantity Demanded $1500 100 10 40…

Q: The Bank of Canada is the lender of last resort. This means banks may borrow money from the Bank of…

A: A lender of last resort (LoR)  refers to an organization that provides loans to banks or other…

Q: How much higher education would we expect to be produced in the free market?

A: Free market quantity of higher education is determined at the intersection of supply and private…

Q: 5. Suppose that Inflation and Unemployment interaction is modeled by p=a-T-BU + gn dл dt du dt -=j…

A: Given: p = a − T − ßU + gπ dπ/dt = j(p − π) dU/dt = −k(m − p) g = 1, j = 1, ß = 1, k = 5, m = 1

Q: Please match each of the labels with the correct description. These can be purchased in order to…

A: A financial security is a type of investment instrument that represents a financial value or claim…

Q: 130 120 110 100 0 16 SAS ADO AD₂ AD₁ 17 18 19 20 21 Real GDP (trillions of 2009 dollars) increase…

A: The monetary policy means policy of federal reserve related to the supply and cost of money.  AD2…

Q: A movie monopolist sells to college students and other adults. The demand function for students is Q…

A: The practice of charging different prices to different consumers for the same product or service,…

Q: If the government were to apply a specific tax to each of these​ commodities, what incidence would…

A: The degree to which the amount demanded of an item or service responds to a change in its price is…

Q: For each region on the graph given in the following table, use the elasticity formula to identify…

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Q: Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed…

A: A shut down point is when the price is below Average variable cost.  The firm should shut down in…

Q: what was the relationship between the premiums, deductibles, and coverage limits for your insurance…

A: Insurance is a legally binding contract or agreement between an individual or group(known as the…

Q: If the bank posts a nominal interest rate of 7 per cent per year and the inflation rate is 5 per…

A: Nominal Interest Rate: It is the rate at which an investment will grow before accounting for…

Q: The payoff matrix presents the profits for Firms X and Y under their two individual pricing…

A: A market structure in which two firms dominate the market for a particular product or service is…

Q: In calculating GDP, economists use the value of final goods and services because Select one: A. B. O…

A: Included in GDP are only domestically produced final and marketable products. This provides us the…

Q: The Dolan Corporation, a maker of small engines, determines that in 2012 the demand curve for its…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: c) Using Excel, calculate the levels of revenue, total cost, and profit for the firm for q = 0,1,2,…

A: Total revenue refers to the revenue generated by firms from sales or operations at different levels…

Q: What specific fiscal policy tools would you use to stimulate aggregate demand and how? What specific…

A: The actions taken by a central bank (CB) or monetary authority to regulate the money supply (MS) and…

Q: Suppose the price of a burger is $4.50 Canadian in Toronto, and the exchange rate is 103 U.S. cents…

A: The price of a burger in Canada: $4.50 Exchange rate= 1 Canadian dollar= $1.03 US dollar PUS= E*PC…

Q: 5.5] The short-run elasticity of supply of coffee is short run, than the long-run elasticity because…

A: Price elasticity of supply measures the responsiveness in quantity supplied of a commodity to a…

Q: Do as you are told. 1. Daniil makes deposits of 150 today and 280 13 years from now into an account.…

A: Given the, Amount of 150 is deposited today and amount of 280 is deposited 13 years from now. ROI…

Q: The graph below depicts an economy where a decline in aggregate demand has caused a recession.…

A: The impact of change in aggregate demand due to the change in government spending is more than that…

Q: Consider the market for CD players, illustrated in the figure to the right. Suppose there are…

A: Equilibrium is where the demand curve intersects the supply curve.  Law of demand states :- Higher…

Q: How do you decide if you need life insurance?

A: Life insurance usually provides financial security to beneficiaries in case of the policyholder's…

Q: The bond market is depicted in the graph to the right. a. The bond demand curve is downward sloping…

A: Financial markets are critical to the economy because they channel savings and investment,…

Q: a. Write an essay of the introduction to import and export at Turkey. b. Write an essay of the…

A: The exchange of products and services between countries is referred to as international trade. It…

Q: , the fixed exchange rate between the British pound and the U.S. dollar was 1 pound equals $5. What…

A: The exchange rate of a currency is refer to a rate by which we can exchange one currency into…

Q: -Select your answer- Does a linear relationship appear reasonable? Distance to Work (miles) = R -…

A: A linear regression model describes the relationship between a variable that is dependent and…

Q: A local restaurateur who had been running a profitable business for many years recently purchased a…

A: A sunk cost is a cost that has already been incurred and cannot be recovered. It is a cost that has…

Q: 5. Katie's Quilts is a small retailer of quilts and other bed liner products. Katie currently…

A: The expenditure incurred in producing a good or a service is known as cost. Cost can be divided into…

Q: In the above figure, technological progress that increases the expected profit will O shift the…

A: The loanable fund theory explains the determination of real interest rate. The demand for loan fund…

Q: In the past, Alpha Corporation has not performed incoming quality control inspections but has taken…

A: The sample size calculation is crucial to the quality control process. Because the quality of the…

Q: 3. A firm has revenue given by R(q) = 100q - 3q² and its cost function is C(q) = 100 + 10q. a) What…

A: Profit is the difference between revenue and cost function.

Q: A B 19. Consider Game 1. This game has A B C D E 3 0 = $400 : l 1 2 3 с 10.10 10.0 1.100 300 Game 1.…

A: Dominant strategy is the strategy that yields higher satisfaction and the strategy does not change…

Q: Crowding Out” does not take place when expansionary fiscal policy is conducted via a tax cut. True…

A: Expansionary fiscal policy are policies enacted by a government for boosting economic growth. The…

Q: Draw a product supply and demand graph showing a ceiling and a floor as usually created by a…

A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…

Q: Figure: The Market for Loanable Funds II Reference: Ref 10-12 (Figure: The Market for Loanable Funds…

A: Equilibrium in the loanable funds market occurs at the intersection of demand and supply curves of…

Q: 3. In what circumstances might an increase in government expenditure add significantly to aggregate…

A: 3. Government expenditure refers to the amount of money spent by a government on goods and services,…

Q: A bond's yield is a periodic fixed payment made to a bondholder expressed as a percent of its face…

A: Bonds are fixed-income securities that simulate loans made by investors to borrowers. In a contract…

Q: to be awam to be awan alue of X th es)

A: When deciding on uncertain incomes from payoff strategies, consumers look at the concerned risks.…

Q: 8 Real interest rate (percent per year) O 6 A 2 0 DLF 150 300 450 600 750 900 Loanable funds…

A: The relationship between the demand for loanable funds and the interest rate is downward sloping.…

Q: Suppose a hypothetical economy is currently operating at point A on the per worker production…

A: An economy refers to the system of interrelated production and consumption activities that…