Explain how Friedman included expectations in his macroeconomic theory, as well as his theory on the formation and role played by expectations in macroeconomic theory.

Q: Two workers independently choose how much effort to put in their jobs. If worker 1 chooses e₁ ≥ 0…

A: Two workers independently choosing the level of effort to put in , so as to maximize payoffs take…

Q: 2. Consider a duopoly handbag market. The two firms produce identical handbags that consumers…

A: Total Benefit : B(x) = 500x - 1.5x2 Therefore ,  Demand function : P = 500 - 3x    (Differentiating…

Q: what is the concept of elasticity and also explain how elasticity affects the revenue earned by a…

A: Elasticity refers to an economic indicator that measures the change in the quantity demanded for a…

Q: MODIFIED TRUE OR FALSE   UNDER PATTERNS OF STRUCTURAL CHANGES, ECONOMIES MUST GO THROUGH A NUMBER…

A: When talking about structural changes, it is the change in the traditional way of production in…

Q: If you borrowed $12,000 payable in 6 equal annual installments, what would be the principal payment…

A: Yearly Installments implies a progression of sums to be paid yearly over a foreordained time of…

Q: The discovery of a large new reserve of crude oil will shift the ____curve for gasoline, leading to…

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

Q: If every comptitive firm earns abnormal profits in the short run, what do you expect will happen in…

A: Perfect competition is the market structure in which there are large number of sellers who sell the…

Q: 8 units of milling machine that costs $ 267228 each are bought today. They can be used for 10  years…

A: To find the capitalized cost of the machinery we need to find out the annual worth of costs for each…

Q: 3. The figure below shows short run cost and revenue curves firm. Price and cost per unit MC £5 ATC…

A: 3) The curve shows the demand and MR curves along with the cost curves.

Q: Examples of form utility

A: Utility is defined as the complete satisfaction a customer gets from using a product or service.…

Q: The following are examples of externalities except A Air pollution from the factory B Noise…

A: An externality is a cost or benefit associated with an activity enjoyed by the third person who is…

Q: For what types of goods cargo ships and barges are used?

A: Cargo ships and barges are considered as one of the modes of transport to transfer goods and…

Q: Alpha Associates has the following details: Fixed cost = $20,00,000 Variable cost per unit = $ 100…

A: Following are the given values: FC = $2000000VC = $100Price = $200Quantity = 60000

Q: Q1 -Calculate the present worth the data as shown below - P=? - F=1234 - 1=10% - Y=5

A: Present value=Future value1(1+I)nWhere, I=Interest rateand n=Time

Q: Q5-You buy today a car 20,000 SR, after 8 year as useful life the deprecation is 20 % per year, what…

A:

Q: Weekend hotel packages, vacation packages, cable tv plans and season ticket plans are examples of:…

A: The price of a thing is the amount of money that must be spent to obtain it. Price is a measure of…

Q: 8. What are current liabilities? Non-current liabilities?

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: The bank is paying 11.29% compounded annually. The inflation is expected to be 12.22% per year. What…

A: When talking about market interest rate, it is the rate at which people are ready to exchange money…

Q: D). Suppose that the market price is above the equilibrium price. What happens? Explain. E). Suppose…

A: Equilibrium is defined as that point in the economy where the forces of demand and supply become…

Q: This is the answer plz write Clear hand written Y=5K0.5 +31° 0.5 Multiply K & L by X = 5(X k) s + 3…

A:

Q: 9. Answer ALL parts of this question. Holland produces cars and beer, using labour and capital, in a…

A: Given information Country Holland Labor unit requirement for car=4 in hours Capital units…

Q: how does a firm behaves in monopolistic competition and  explain the outcomes for the firm in the…

A: In monopolistic competition the decisions are assumed to be not interdependent. There is free entry…

Q: Residents and governments of Europe have been much more critical of geneticallymodified crops and…

A: Cultural difference: - Cultural difference is the difference in values, beliefs, language, etc.…

Q: Refer to the demographic transition model below to answer the three questions that follow.…

A: Demographic transition refers to the transition of the society from high birth rate and high death…

Q: Consider the following perfect information sequential move game between Player 1 and Player 2, where…

A: Given information 2 players player 1 and player 2 Given game is sequential game with perfect…

Q: explain how the costs of the firm are calculated, and the way that prices are determined in perfect…

A: To produce more output in the short run, a firm must employ more labour and buy more raw materials…

Q: Differentiate between economic growth and economic development.

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The economy is experiencing a $225 million inflationary gap. If the government decided to solve this…

A: Given; Inflationary Gap= $225 million MPC= 0.9 Formula to calculate tax multiplier:-…

Q: monopolist sells boat insurance policies linked to their registrations in two states, and resales…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three question for you.…

Q: Suppose that in a small town in July, the price of a loaf of bread was $2.50 and 1700 loaves were…

A: In August Price = 2.50 Quantity = 1700 In August Price = 2.29 Quantity = 1500

Q: What is the present value or price of a 10 year P20,000 annuity with an interest rate of 5% P1.9M…

A:

Q: 3. Brett and Andy applied for the same credit card from the same bank. The bank checked FICO scores.…

A: Answer a. Annual Percentage Rate = 12.6% Monthly Percentage Rate = APR / 12…

Q: MODIFIED TRUE OR FALSE Human Development Index is a mix of three statistics- wealth, education and…

A: UNDP has provided various aspects of the development of HDI. HDI ranking is part of the development…

Q: .39 A new machine is expected to cost $6000 and have a life of 5 years. Maintenance costs will be…

A: The information being given:- Cost of machine = $6000 Life = 5 years Maintenance cost = $1500 for…

Q: Marginal revenue of a product is the incremental revenue of selling an additional unit of that…

A: Following is the given values:  The revenue from selling 20 units = 15000  The revenue from selling…

Q: Provide a brief introduction around strategic decision making and macro -environmental analysis.

A: Strategic decision making:- To achieve an edge, strategic decision-making is a method of…

Q: The cost of construction material for large infrastructure projects are reportedly rising at an…

A: General inflation rate = 6% Inflation of construction material = 12%

Q: How do you record the following transactions into the US. Balance of Payments (BOP) in 2020? A…

A: The Balance of Payment is defined as the record of all global financial transactions made by the…

Q: A. If George is willing to pay P100 for a product and John is willing to pay P80 for the same, the…

A: Consumer surplus occurs when the consumer's willingness to pay is greater than the market price.…

Q: A special purpose machine is to be acquired by paying a P15,000 initial cash payment plus a debt…

A:

Q: Blake decides to spend a spring day in the field planting wheat with some help from some workers he…

A: Total revenue of Blake = $870 Blake incurred renting cost of tractor = $50 Fertilizer cost = $150…

Q: Assume that the consumer purchases only two goods, x and y. Based on the information in each of the…

A: Utilty is defined as the satisfaction which the consumer gets by consuming the homogeneous units of…

Q: Identify and describe four major categories of variablesthat can be used to segment con-sumer…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: During the 2012 fiscal year, households in an economy spent 80 per cent of their disposable  income…

A: Introduction We have given data of a economy of the fiscal year 2012. We have to calculate the…

Q: Q2. Determine the returns to scale of the following production function: Hand written plzz Y = 5K0.5…

A: Returns to scale: - returns to scale show the change in output due to the change in scale of…

Q: Suppose two nations, Beta and Gamma, each make aircraft and corn. The main resource in each nation…

A: Opportunity costs address the potential benefits that an individual, monetary patron/financial…

Q: If each country specializes in the good in which it has a comparative advantage,....will gain from…

A: Introduction According to comparative advantage, countries will trade with others, exporting…

Q: Third-world countries should be provided with education plans by the developed countries.

A: The study of economic concerns connected to education, such as demand for education, funding and…

Q: A portfolio has three stocks - - 240 shares of Yahoo (YHOO), 110 Shares of General Motors (GM), and…

A: Calculation of the portfolio weight of Yhoo and GM: Weight of Yhoo = Investment value of Yhoo /…

Q: EXAMPLE 1.1 Alpha Associates has the following details: Fixed cost = Rs. 20,00,000 Variable cost per…

A: The term break-even refers to the quantity at which the firm is neither in profit nor in the loss.…