Q: List pros and cons of government spending. Can government spending be shown on the IS model or the…
A: AD(aggregate demand) has the following components: AD=C+I+G+(X-M)C is consumption expenditureI is…
Q: Which of the following statements concerning the aggregate demand and aggregate supply model is…
A: Aggregate supply is the cumulative quantity supplied in a market that businesses can offer at a…
Q: Assume that initially everyone expected the price level to stay the same when the Federal Reserve…
A: here, AS is Aggregate supply AD is Aggregate demand
Q: Two variables that affect the slope of the aggregate demand curve are Select one a. tax rates and…
A: There are three main reasons because of which the slope of the aggregate demand curve gets…
Q: AD-AS (aggregate demand/supply) Changes What things cause aggregate demand to shift? Why does each…
A: (a)In economics, AD can be stated as the aggregate/total demand of all the final services and goods…
Q: According to the "4-Quadrant Model" (4QM), which of the following statement is correct? O If there…
A: According to the "4-Quadrant Model" (4QM), which of the following is correct. The four quadrant…
Q: Illustrate graphically and explain the derivation of the aggregate demand curve from the IS and LM…
A: IS-LM: The IS-LM is an macroeconomic model that describes how the money market interacts with the…
Q: Imagine that in the year 2025, China’s economy increases significantly, causing an increase in…
A: The income of a person and their consumption are directly related. If the income of a person rises,…
Q: The following table gives the aggregate demand and aggregate supply schedules in January 2016 for a…
A: Aggregate supply: It refers to the total level of output in an economy. The increase in the level of…
Q: been... • lots of pent-up demand post lockdowns (e.g. many people who are flying for the first time…
A: Pent up demand increases aggregate demand in the economy which shifts aggregate demand rightward.…
Q: Baseball caps (a) What are the equilibrium price and quantity at the medium level of demand (D)? The…
A: The market would result in the interaction between the demand and the supply forces in the market.…
Q: Economist A believes that changes in aggregate demand affect only the price level, and economist B…
A: Economist A believes that changes in aggregate demand only affects the only price level. Economist…
Q: IS/LM Model refers to the general equilibrium not macroeconomic equilibrium.
A: The IS-LM model, which stands for "Investment-Savings" (IS) and "liquidity preference-money supply"…
Q: Below I have attached my attempt of the IS curve model for India’s economy. Please correct if wrong.…
A: IS curve: - IS curve shows different combinations of interest rate and the level of GDP where…
Q: In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer…
A: Answer- Need to find- In the model of aggregate demand and aggregate supply, the initial impact of…
Q: In 2013, Prussia's aggregate demand curve was determined by the equation M + 1-4% A change in…
A: The quantity theory of money:The quantity theory of money equation can be written as follows:
Q: What role do imports play in aggregate demand? Under which conditions will changes in imports expand…
A:
Q: The following graph shows the aggregate demand (AD) and aggregate supply (AS) curves for the United…
A: Aggregate Demand has four componenets. Namely, 1.Consumption 2.Investment 3.Government Spending…
Q: From a spending model perspective, explain the causes of a recession
A: Recession refers to the situation where the growth rate of GDP is become negative between the two…
Q: The model of aggregate demand and aggregate supply is different from the model of supply and…
A: Aggregate demand is the total demand of finished goods and services in the economy in given time…
Q: The total expenditure in Macroland begins with these initial levels (in trillions of dollars):…
A: Multiplier = 1 / [1 - MPC] Decline in GDP = Decline in investment * Multiplier
Q: Which of the following both shift the aggregate demand curve to the right? Group of…
A: Aggregate demand curve is a downward sloping curve indicating the negative relationship between the…
Q: Use the Aggregate supply and Aggregate Demand Model below to answer the questions that follow.…
A: There is an increase in the aggregate demand (AD) in the economy when the Government increases its…
Q: Consider the following equations describing the components of demand and equilibrium in the goods…
A: People studies economics to understand the changes or fluctuations in the market and economic…
Q: In the Macro Model, an increase in the amount of Capital in an economy due to Investment spending…
A: To determine the effect of an increase in the amount of capital due to investment spending.
Q: In the model of aggregate demand and aggregate supply, the quantity of _____ is on the horizontal…
A: Net exports signifies the net foreign demand (that is foreign demand minus domestic demand) for…
Q: What are some examples of changes in the economy that would lead to a movement along the IS curve?…
A: IS Curve shows relationship between interest rates and output level in the economy.
Q: What are the factors other than price that can shift aggregate demand curve in terms of investment…
A: Aggregate demand (Y) is the demand for all finished goods and services in the economy in a given…
Q: What change does recession has on the price and output level when the change in aggregate demand is…
A: Recession: It is an economic situation or a phase of the business cycle in which the economy…
Q: What are the differences among models that forecast the level, trend, and seasonality?
A: A relatively new forecasting approach known as a multiple aggregation prediction algorithm…
Q: "The demand curves for all products have negative slopes. For instance, the demand curves for…
A: The demand for a commodity shows or exhibits the amount desired by its entire consumers at a given…
Q: Men or women increase their consumption as their income increases, but the increase in consumption…
A:
Q: A general-functional form of the IS-LM model is given. A goods market is described by the following…
A: Y = C + I + G C = C(Y-T) Md = L(Y, r) MS = M0S, Set by central authority In the money market…
Q: Between 2007 and 2009, the United States experienced a severe financial crisis and economic downturn…
A: Aggregate demand is a major macroeconomic variable affected by 4 components. These components…
Q: Fisher's two period model implies that as long as consumption in both periods is as a normal good,…
A: In Fisher's theory, the Consumer can borrow and then lend across periods but the timing of income is…
Q: In March 2020, as the Covid-19 recession hit the world, consumers became pessimistic about their…
A: The gross domestic product(GDP) is defined as the market value of all the final commodities(goods…
Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…
A: When there is a change in price of the good, it causes movement along the demand or supply curve.…
Q: Consider an AS AD diagram. What would happen in the model if Energy prices increased? Group of…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: Imagine that in the year 2035, Japan’s economy shrinks significantly, causing a decrease in…
A: The AD/AS model illustrates the Keynesian model of the business cycle. It is possible to forecast…
Q: Name and discuss the factors that shift the IS Curve. Give two examples, with the help of a diagram,…
A: The curve that depicts numerous combinations of the level of output and interest rate such that…
Q: The following graph shows an increase in aggregate demand (AD) in a hypothetical country.…
A: "Aggregate demand in a nation represents the total amount of commodities demanded by consumers in a…
Q: Name two macroeconomic variables that decline when the economy goes into a recession. Name one…
A: Recession:Recession refers to the situation of a widespread decline in spending which leads to an…
Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…
A: Aggregate demand is the income expected to be earned by the entrepreneur by the sales of goods and…
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- The marginal benefit of being able to emit a ton of sulphur dioxide emissions for twofirms are given by:MB_X = 320 – ( Ex / 3 )MB_Y = 500 – ( Ey / 2 )Note that these marginal benefit figures can be interpreted as marginal cost of abatingemission down to levels Ex and Ey.Government regulators want to reduce total sulfur dioxide emissions to a total of 1200tons.a) If the government imposes the same standard of 600 tons maximum emissions onboth firms what would be the total cost of abatement (calculated as the aggregatedmarginal benefits forgone)?b) If the government distributed 600 tradable pollution permits to each firm whatwould be the final allocation of these permits after the firms trade them? Whatwould be the total cost of abatement in this latter case?The problems with e.g."Acid rain" created by emissions of sulfur dioxide has been onemajor problem in Sweden, not least because emissions have occurred in other countries (eg England and Denmark) andthen transported here. Now assume that if one tonne of sulfur is emitted in England, it results in one (1) gram of sulfur deposition in Sweden. The corresponding deposit of one tonne of sulfur emissions in Denmark is assumed to be 3 grams. Suppose further that The socio-economic damage of one gram of sulfur deposit can be estimated at SEK 0.10.The marginal cost of reduce sulfur emissions in England is estimated at Z SEK per tonne, and in Denmark the equivalent is estimatedcost to 2Z SEK per tonne. Z indicates here the emission reduction in tonnes (eg in Denmark it would cost SEK 4 toreduce emissions by two tonnes). In other words, Z = 0 corresponds to the emission level where there is no reductionemissions occur. a) Suppose now that the European Union decides that Denmark and England…Two important industries on the island of Bermuda are fishing and tourism.According to data from the Food and Agriculture Organization of the United Nationsand the Bermuda Department of Statistics, in 2009 the 306 registered fishermen inBermuda caught 387 metric tons of marine fish. And the 2,719 people employed byhotels produced 554,400 hotel stays (measured by the number of visitor arrivals).Suppose that this production point is efficient in production. Assume also that theopportunity cost of 1 additional metric ton of fish is 2,000 hotel stays and that thisopportunity cost is constant (the opportunity cost does not change).a. If all 306 registered fishermen were to be employed by hotels (in addition to the2,719 people already working in hotels), how many hotel stays could Bermudaproduce?
- High-income people are willing to pay more thanlower-income people to avoid the risk of death.For example, they are more likely to pay for safetyfeatures on cars. Do you think cost–benefit analystsshould take this fact into account when evaluatingpublic projects? Consider, for instance, a rich townand a poor town, both of which are considering theinstallation of a traffic light. Should the rich town usea higher dollar value for a human life in making thisdecision? Why or why not?Computer models of global climate changecaused by increasing carbon dioxide in the atmosphere predictnot only higher overall temperatures, but also more intense andfrequent heat waves. During the devastating European heatwave in the summer of 2003, between 35,000 and 52,000“excess deaths” occurred. Before taking specific actions toreduce carbon dioxide emissions, economists and politicians tryto estimate the costs. Should excess deaths be included as acost of inaction? If so, what value should we place on a life?Economists may disagree because they havedifferenta. hunches about the validity of alternativetheories.b. judgments about the size of key parameters.c. political philosophies about the goals of publicpolicy.d. All of the above.
- Five roommates arc planning to spend the weekendin their dorm room watching movies, and they arcdebating how many movies to watch. Here is theirwillingness to pay:Quentin Spike Ridley Martin StevenFirst film $14 $10 $8 $4 $2Second film 12 8 4 2 0Third film 10 6 2 0 0Fourth film 6 2 0 0 0Filth film 2 0 0 0 0Buying a DVD costs SIS, which the roommates splitequally, so each pays $3 per movie.a. What is the efficient number of movies to watch(that is, the number that maximizes total surplus)?b. from the standpoint of each roommate, what isthe preferred number of movies?c. What is the preference of the median roommate?d. (f the roommates held a vote on the efficient out~come versus the median voter's preference, howwould each person vote? Which outcome wouldg~ a majority?c. lf one of the roommates proposed a differentnumber of movies, could his proposal beat thewinner from part (d) in a vote?f. Can majority rule be counted on to reach efficientoutcomes in the provision of public go<Xis?Discuss any two of the eight infrastructure investments prioritised bythe NDP in relation to the Sustainable Development Goals (Todaro &Smith, 2020:17). Answer the following Question:• Indicate to which degree each infrastructure investment alignswith one or more of the Sustainable Development Goals. Note: The chosen infrastrucutre investments are Transportation and sustainable cities and communities.In 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…
- Intermediate MicroeconomicsProblem Set 10.Submission options:⢠in person during lectures or TA sessions;⢠in Xiaoye Liaoâs mail box at 19 West 4th, 6th Floor;⢠(less recommended) e-mail Xiaoye Liao atxl775@nyu.eduâ in that case, be sure to use the subject line: âSubmission Problem Set 10â.Exercise 1Consider a game of rock-scissor-paper. There are two players, player 1 and player 2,and the winner receives $1 from the loser (if they draw, nothing happens). They playthis game simultaneously.1. What kind of game is this? Express this game in normal form.2. What are the set of possible actions and strategies?3. Find all Nash equilibria of this game.Exercise 2Consider a game represented by the following payoff matrix. Find all pure strategyNash equilibria. UMD LCR?10, 0 ?10, ?1 ?10, ?1?8, ?8 0, ?102, ?14, 57, ?101, 1 Exercise 3Consider a game represented by the following…The New York City Council is ready to vote on two billsthat authorize the construction of new roads in Manhattanand Brooklyn. If the two boroughs join forces, they can passboth bills, but neither borough by itself has enough powerto pass a bill. If a bill is passed, then it will cost the taxpayersof each borough $1 million, but if roads are built in aborough, the benefits to the borough are estimated to be $10million. The council votes on both bills simultaneously, andeach councilperson must vote on the bills without knowinghow anybody else will vote. Assuming that each boroughsupports its own bill, determine whether this game has anyequilibrium points. Is this game analogous to the Prisoner’sDilemma? Explain why or why not.In what ways (it) company investments in research and development create positive externalities?