Determine whether the following scenarios would increase, decrease or have no impact on potential GDP in the country of Torania: A. Technological improvements B. Productivity of workers in Torania decline C. Households across Torania see a decline in home prices, reducing household wealth 1. Decrease potential GDP ?2. Increase potential GDP 3. No impact on potential GDP

Q: State all the components of the M2 money supply (you may not list M1 as a component, rather you must…

A: Money supply is measured through the different measures such as M1, M2 and M3. The M1 is narrow…

Q: Equilibrium in the financial capital market occurs at an interest rate of 6 % GDP is $500 billion,…

A: Given,  Interest Rate = 6% GDP = $500 billion Budget Deficit = $15.5 billion Increase in GDP = $100…

Q: Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their…

A: Given that, Kara's cost per ton = $6 Kyle's cost per ton = $10 Market price of sockeye salmon = $14…

Q: question 33 The demand curve for a certain product is given by p(q )= 551-q^2 . The supply curve is…

A: Producer surplus is the difference between the price that the producer is willing to receive and the…

Q: Use the information below to answer the following questions. Suppose that in China, investment is…

A: Given that; Investment = ¥190 billion Saving =¥170 billion Government expenditure =¥195 billion…

Q: Suppose we have the following expenditure function: E(p«‚Py, Pz‚Ū) = Ū¹¹³ +Pa+PzY. Px Then, y is:…

A:

Q: Draw a diagram for a perfectly competitive industry with firms earning normal profits in the long…

A: Perfectly competitive market is the one where there is homogeneous product prevailing in the market…

Q: If loans become far less available, then sectors of the economy that ______________ like business…

A: The availability of loanable funds is a key criterion for investments. Increases in investment…

Q: Which of the following is true about utility-income model? The individual prefers an uncertain…

A: Utility is a term used in economics to describe the value or worth of a good or service. Utility is…

Q: 6 workers and 4 machines are required to produce 2 computers. 2 workers and 2 machines are required…

A: Given, labor usage and capital usage of computer and tomato. Now we had to calculate labor and…

Q: A competitive firm has a long-run total cost function C(y) = 3y2 + 108 for y > 0 to produce y units…

A: For the competitive firm, cost function is  C(y) = 3y2 + 108. Average cost function is AC(y)= TC/Y

Q: Assume a patient has a particular disease. The quality weight (q) associated with the disease is…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The United States and Canada have the production possibilities curves shown above.  It is determined…

A: Opportunity cost is the cost of producing one good in terms of other.  Opportunity cost shows the…

Q: The table below shows the short run production function for Corey's Card Store. Number of workers 1…

A: Diminishing marginal returns: When the quantity of a single element of production is gradually…

Q: You have a regression: Ỷ =0.42 + 0.9 X − 1.37X2 +0.61X3 (0.24) (0.5) (0.34) N = 50, R² = 0.67 What…

A: Given information: R2 = 0.67 Number of the explanatory variables (K) = 3 Note; X1, X2 and X3 are…

Q: Companies in an oligopoly market that decide to collude (cooperate): a. Will set different prices.…

A: An oligopoly is a form of market structure in which few firms operate and are interdependent on each…

Q: Which line represents better terms of trade? (Slide: Improvements in terms of trade) A. PPB B. CP1…

A: The terms of trade is an international concept that deals with the exports and the imports of a…

Q: If the U.S. Congress passes legislation to raise taxes to control inflation, what kind of policy is…

A: Fiscal policy is the policy used to change the aggregate demand by the change in government spending…

Q: As the number of firms In an cligopoly becomes very lange, the price gets close to the perfiect…

A: Oligopoly is the market structure with few firms that are in intense competition with each other.…

Q: If it is not profitable to discriminate, why does discrimination persist? If a country had perfect…

A: “Since multiple questions have been asked by you, we will solve the first question. Please specify…

Q: What will happen if a monopoly raises its price?     a Quantity demanded will increase. b Quantity…

A: In a monopoly market, there is only one single firm that supplies output for a large number of…

Q: The elasticity of demand for energy- ‘Electricity, and Gas’- is relatively price  inelastic in the…

A: Elasticity of demand refers to the responsiveness of consumers to the change in the market price of…

Q: Assume a fixed MC across the two firms MCA = MCB = 4. Assume further that they both face a mark…

A: Firms under imperfect competition have varying degrees of control over the prices of the products…

Q: explain why does the WTO need to separate Agreement on Agriculture?

A: The Committee on Agriculture oversees the application of the Agriculture Agreement and keeps track…

Q: For its computer assembly business, Kento Electronics is thinking about purchasing a more advanced…

A: Given information MARR 15%         Year J K L M N 0 -2700000 -1700000 -2000000 -1500000…

Q: Which one of the following can increase the estimate of damages caused by a particular pollutant? O…

A: Introduction: Economic damage: Financial losses that can be objectively verified as having occurred,…

Q: Given the following information, derive the Lorenz curve and compute the Gini coefficient. Income…

A: Lorenz curve and Gini coefficient are the two measures of the inequality that prevails in any…

Q: What the bank is holding - or it's reserve deposit A. Primary Reserve Occurs if the bank holds more…

A: The central bank of a nation sets the required reserve ratio and each commercial bank has to keep…

Q: Starting at age 35, you deposit $2000 a year into an IRA account for retirement. Treat the yearly…

A: Disclaimer- “Since you have asked multiple question, we will solve the three question for you as per…

Q: n your answer, describe whether you used formula 1, formula 2, formula 3, or formula 4. Show…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: N5    The following data is provided for a PPP project.   To the People To the Government…

A: A benefit-cost ratio is a marker, utilized in cost-benefit analysis, that endeavors to sum up the…

Q: 3. Does the following figure depict a long-run or short-run scenario? Explain. 0 me atc avc I

A: In short run, there is atleast one input is fixed and others are variable.  This means there is…

Q: QUESTION 24 With perfect price discrimination the monopoly O a eliminates deadweight loss. O b.…

A: In perfect price discrimination,  The monopolist will change the consumer their willingness to pay.…

Q: find the utility-maximizing consumption function subject to the budget constraint

A: For the utility maximising consumption bundle the basic principle is that we equate the rate at…

Q: Match the definition with the term provided.

A: The above definitions are matched with respect to US financial system

Q: You are the manager of Taurus Technologies, and your sole competitor is Spider Technologies. The two…

A: * SOLUTION :-  Given that ,     The cost function is  C(Qi) = 2Qi,  The product is given by P =290 -…

Q: In the aggregate demand and aggregate supply model, when does the aggregate quantity of goods…

A: In AD/AS model, the aggregate demand curve will increase or shift to the right when any of the…

Q: According to Saskia Sasken, in global cities, there has been a simultaneous increase in demand for…

A: The labor market is the market where the demand for labor and the supply of labor is determined. The…

Q: If a bank has $30,000,000 in deposits, excess reserves of $2,000,000, and required reserves of…

A: Given deposits = 30,000,000 Excess reserves = 2,000,000 Required reserves = 1,500,000

Q: Consider the following dynamic game. There are two players (P1, P2). Player 2 tries to rob Player 1.…

A: In the given scenario, there are two players P-1 and P-2 where first P-1 decides whether to give the…

Q: To fight inflation, the Fed will: (Select all that apply)   A. Sell securities on the open market.…

A: Monetary policy is the policy used by the central bank of the country to control the money supply in…

Q: a. When the owner hires 4 workers, the average product of labor is b. The marginal product of the…

A: Total product is the total production of goods and services done by the workers.  Average product of…

Q: A firm faces a production function with inputs capital (K) and labor (L): F(K, L) = K¹/2 1/4 The…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: QUESTION 36 The severance pay for each of the first five years of service shall be calculated as:…

A: Part 36 Option b is correct. Generally, the gratuity or the severance pay is not liable in the first…

Q: Consider trade relations between Canada and Mexico. Assume that the leaders of the two countries…

A: Nash equilibrium refers to the best course of action of a player provided the strategy of rival firm…

Q: A decrease in the tax on capital income investment and economic growth. the real interest rate and…

A: In an economy, capital gain refers to the amount of money earned by an individual when he invested…

Q: If the Central Bank of Vinicius wants to reduce the inflation rate they could: a) sell public debt,…

A: public debt, obligations of governments, especially those confirmed by protections, to pay specific…

Q: 21. Government policies to reduce inequality and poverty include all of the following except a)…

A: Governments aim for economic development by promoting equity and reducing inequality and poverty…

Q: Buying and selling government securities to financial institutions is called:   A. Open market…

A: Monetary policy is the policy used by the central bank of the country to control the money supply in…

Q: Three neighbors share a private dirt road off the main highway that leads to their homes. The Huang…

A: A proportional tax is the rate of tax that remains the same for all the income types of groups.…