Explanation it correctly Q)Explain on a table the differences between the two macroeconomic multipliers (fiscal policy, monetary policy) studied in the second part of the course.
Q: uppose you want to withdraw $1500 every 6month from an account that's pays 14% interest compounded…
A: Given 6-Monthly withdraw amount A= $1500 Rate of interest = 14% compounded twice a year or…
Q: With the illustration of demand and supply curves, discuss how the relaxation of development control…
A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…
Q: b) What information does the sacrifice ratio tell us about the consequences of reducing inflation?
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: In the neoclassical model, low inflation is good because Select the correct answer below: O it…
A: The neo-classical model revolves around the concepts of market demand and supply and believes that…
Q: Which of the following would be studied in macroeconomics? O a) individual markets b) changes in the…
A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.
Q: A country experiences economic growth if Question 53 options: a) real GDP increases b)…
A: A country experiences economic growth means a increase in the real value of goods and services…
Q: Givenu(x)=x0.5 Lottery A Probability 0.50 0.25 0.25 Outcome 64 16 0 For automatic grading, give…
A: Givenu(x)=x0.5 Lottery A Probability 0.50 0.25 0.25 Outcome 64 16 0
Q: Describe 5 five negative externalities arising from the consumption and disposal of plastic bottles
A: The markets are the place where the meeting and interactions of the buyers and the sellers takes…
Q: Consider the following normal-form game:
A: Since the question you have posted consists of multiple parts, we will answer the first two…
Q: What is the primary difference between a monopsonist and a firm which operates in a perfectly…
A: "Monopsony labor market occurs when there is only one employer in a labor market."
Q: Is the lottery a fair way to allocate economic resources
A:
Q: University of Alabama Don't pay athletes Pay Athletes Don't pay athletes 5,5 2,8 Auburn Univ. Pay…
A: We have 2×2 game in which there are two players with two actions.
Q: C 12 Good X Good X Good X This picture shows three different indifference curve maps: A, B and C.…
A: The answer is - option 3 - B
Q: Legal reserve requirements: Question 56 options: a) set the minimum amount of reserves a bank…
A: Reserve requirment= Cash reserve ratio reserve requirement/Bank deposit*100
Q: Assume that the MPC is 0.70. What is the income multiplier? Question 46 options: a) 0.3 b)…
A: MPC + MPS = 1 Where MPC is the marginal propensity to consumer MPS is the marginal propensity to…
Q: 1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of…
A: A loan is a contract between two people: a lender (who provides money) and a borrower (who receives…
Q: Quantity Total of Labor Product 45 95 120 4 135 140 91 138 130 Given the above table, the marginal…
A: Marginal product refers to the change in total product with respect to change in quantity of labor.
Q: The expansion phase of a business cycle occurs from the a) bottom of a trough to the next trough. O…
A: Business cycle refers to increase and decrease real output produced in the economy.
Q: Relevant damage categories for compensatory damages include damages that are compensable by law and…
A: Compensatory damages are funds. It is given to a plaintiff to compensate for losses such as damages,…
Q: a) Explain the influence of each of the following on the natural rate of unemployment Employment…
A: Introduction : The natural rate of unemployment represents the lowest unemployment rate whereby…
Q: Consider Alexei who makes $1,400 per week and just won a ‘set for life’ lottery ticket which…
A: Given, Alexei makes $1,400 per week and won a 'set for life' lottery ticketFortnightly payment :…
Q: An increase in would lead to an increase in long-run economic growth. a) consumer spending and…
A: Economic growth is the permanent increase in real GDP per capita.
Q: 14. Suppose that the market for a certain good has an inverse demand of P = 200 – Q. The aggregate…
A:
Q: For the cash flow diagram given below, compute the rate of return.
A: Given that:
Q: The supply and demand curves are given below in the market for concer tickets. The price is in…
A: Equilibrium is achieved at a point where demand curve intersects the supply curve. When the tax is…
Q: In the following normal form game, perform iterated elimination of strictly dominated strategies.…
A: The Nash equilibrium best course of action provided the strategy of rival firm has been given.
Q: 3. From the following graph, show the equilibriums under each scenario. Market is in equilibrium at…
A: Equilibrium in market Equilibrium is a state in the market where the demand of the market and…
Q: When the unemployment rate is equal to its natural rate-that is, no cyclical unemployment exists-the…
A: Unemployment rate refers to the percentage of labour force that is unemployed. Unemployment occurs…
Q: Which of the following could cause the aggregate demand curve to shift righ a) an increase in the…
A: Aggregate demand shows an inverse relationship between price level and the total output of goods and…
Q: Some individuals are unemployed because they are laid off from their jobs when the economy is…
A: Unemployment occurs when people are not able to find a job but they are willing to do a job.
Q: Let preferences of both individuals be given by log(ci)+ log(c). Suppose that the endowment vectors…
A: Market supply of both the goods are the sum of endowments.
Q: U.S. real GDP is substantiality higher today than it was 60 years ago. What does this tell us, and…
A: Real gross domestic product is an inflation-changed measure that mirrors the worth of generally…
Q: If a marginal cost pricing rule is imposed on the natural monopoly shown in the figure, then the…
A: A natural monopoly is single firm in the market and has decreasing average total cost.
Q: The utility of Amanda for leisure (L) and income (Y) is U = LY. The price of income is 1. If Amanda…
A: We are going to use maximization technique to answer this question.
Q: Most of the interest on the Fed's assets is: A used to maintain the buildings and grounds of the 12…
A: The Fed's assets comprise fundamentally U.S. Depository notes and bonds and mortgage-backed…
Q: Saudi Arabia is an oil exporting country. AD : Y = 710 − 30P + 5G+3Poil， AS : Y = 10 + 5P − 2Poil…
A:
Q: Hot-dogs (P = $1) Apple pie slices (P=$2) Hot-dogs Total MUMU/P Apple pie Total MUMU/P…
A: We have price of hot dog is $1 and price of an apple pie slice is $2 and income of $9
Q: The inverse labour demand curve of a monopsonist employer is W = 42,500 – 118L, where Wis the annual…
A: We labour supply and labour demand function and competition is monopsnist.
Q: Value of a mixed stream. Neil Tyson has developed a prototype of an armored fabric that is very…
A: The net gain or loss of an investment over a particular time period represented as a percentage of…
Q: Period 1 3 4 5 Gross Requirements 50 50 50 50 50 50 Scheduled Receipts On Hand Inventory 75 Planned…
A: The correct answer is given in the second step.
Q: 2.Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is…
A: The solutions to the three questions are as under:
Q: When they act as a profit-maximizing cartel, each company will produce cans and charge $ per can.…
A: Given:- MC of producing can=$0.80 per canMC=ATC Please find the images attached below for detailed…
Q: Assessed classes of immigrants are those who are: evaluated on the basis of their likely…
A: Immigration to another nation is a legal process, there are various forms of papers that must be…
Q: Andrea starts her own business, which earns $75,000 in accounting profit in the first year. When…
A: Here we calculate the economic Profit of the Andrea's from this business and choose the correct…
Q: 6. Hongxing has developed a popular self-hypnosis course. She sells the course two ways: through a…
A: Given information Hongxing is a popular firm for self-hypnosis course. He sells in 2 markets…
Q: The ___________ is the Fed’s primary tool for adjusting the ___________ . a. interest on reserve…
A: The interest on reserve balances rate is an administered rate, the Fed can steer the federal funds…
Q: a. When transaction costs are low enough, efficient resource allocation will follow regardless of…
A: First it is critical to comprehend the importance of "Exchange Cost". In this way, the transation…
Q: Assume there are two goods, prices are indicated, and there is a consumer with a specified income.…
A: Price effect is the effect of the price change on the quantity demanded of a product. The price…
Q: The partial credibility premium is calculated as 706 for 400 observations with mean loss of 600. It…
A: When actuaries examine data in order to evaluate risk, they employ tools, rules, and methods known…
Explanation it correctly
Q)Explain on a table the differences between the two
Step by step
Solved in 2 steps
- Differentiate the macroeconomic effects that explain the causes of the differences of government spending in aggregate demand. Give a wider explanation.Only typed answer and don't use chat gpt The government can use _____________ in the form of ____________________ to increase the level of aggregate demand in the economy. A.) expansionary fiscal policy; an increase in corporate taxes B.) contractionary fiscal policy; a reduction in taxes C.) contractionary fiscal policy; an increase in taxes D.) expansionary fiscal policy; an increase in government spendingWhich of the following occurs as investment becomes more responsive to changes in the interest rate? Select one: a) . Monetary policy becomes more effective at changing real gross domestic product. b)There is no change in the effectiveness of either monetary or fiscal policy. c) Fiscal policy becomes more effective at changing real gross domestic product. d) Monetary policy becomes more effective at changing interest rates.
- List pros and cons of government spending. Can government spending be shown on the IS model or the aggregate demand model?Some politicians have suggested that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession. This is because when the economy enters a recession, ???Question According to the multiplier effect, an initial decrease in government purchases decreases real GDP by Y the initial decrease in government purchases the same amount as more than less than AD Real GDP AD
- This problem has been solved! See the answer Explain the relationship between the aggregate expenditures model in graph (A) below and the aggregate demand–aggregate supply model in graph (B) below. In other words, explain how points 1, 2, and 3 are related to points 1’, 2’, and 3’.Use the information in the following table to answer the questions below. Assume you are dealing with short-run aspects of the economy, so the marginal propensity to consume is constant. Also, for simplicity, assume this economy has no taxes. In your answers, expain brifly how did you get the numerical result. Real GDP Consumption PlannedInvestment GovernmentPurchases Net Exports $9,000 $7,800 $1,500 $1,000 -$700 $10,000 $8,600 $1,500 $1,000 -$700 $11,000 $9,400 $1,500 $1,000 -$700 $12,000 $10,200 $1,500 $1,000 -$700 $13,000 $11,000 $1,500 $1,000 -$700 $14,000 $11,800 $1,500 $1,000 -$700 Suppose net export increases by $400 (Assuming MPC, Gevernment Purchases, and Planned Investment are the same). What will be the new equilibrium level of GDP? Consumption?Use the information in the following table to answer the questions below. Assume you are dealing with short-run aspects of the economy, so the marginal propensity to consume is constant. Also, for simplicity, assume this economy has no taxes. In your answers, expain brifly how did you get the numerical result. Real GDP Consumption PlannedInvestment GovernmentPurchases Net Exports $9,000 $7,800 $1,500 $1,000 -$700 $10,000 $8,600 $1,500 $1,000 -$700 $11,000 $9,400 $1,500 $1,000 -$700 $12,000 $10,200 $1,500 $1,000 -$700 $13,000 $11,000 $1,500 $1,000 -$700 $14,000 $11,800 $1,500 $1,000 -$700 (a) What is the equilibrium level of real GDP in this economy? (b) Compute the marginal propensity to consume. (c) Compute the government expenditures multipler. (d) Suppose net export increases by $400 (Assuming MPC, Gevernment Purchases, and Planned Investment are the same). What will be the new equilibrium level of GDP? Consumption?
- Question Consider an economy described by the following equations: Y = C+I+G C = 100+0.75 (Y-T) I = 500-50r G = 125 T = 100 where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. If the economy were at full employment (that is, at its natural rate), GDP would be 2,000. What is the marginal propensity to consume in this economy? Suppose the central bank’s policy is to adjust the money supply to maintain the interest rate at 4 percent, so r = 4. Solve for GDP. How does it compare to the full-employment level? Assuming no change in monetary policy, what change in government purchases would restore full employment? Assuming no change in fiscal policy, what change in the interest rate would restore full employment?The graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by changing taxes to reduce the burden of this recession. Fiscal Policy Instructions: Enter your answer as a whole number. If you are entering a negatlve number Include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrilum? $, billion b. If the MPC is 0.6 , how much do taxes need to change to shift aggregate demand by the amount you found in part a? $, billion Suppose Instead that the MPC is 0.8 . c. How much does aggregate demand and taxes need to change to restore the economy to Its long-run equilibrlum? Aggregate demand needs to change by $ billion and taxes need to change by $ billion.5. Fiscal pollcy, the money market, and aggregate demand Suppose there is some hypothetical economy in which households spend $0.50 of each additional dollar they earn and save the $0.50 they have left over. The following graph plots the economy's initial aggregate demand curve (AD1). Suppose now that the government increases its purchases by $2.5 billion. / Tools Use the green line (triangle symbol) on the following graph to show the aggregate demand curve (AD,) after the multiplier effect takes place. Hint: Be sure the new aggregate demand curve (ADs) is parallel to ADj. You can see the slope of ADi by selecting it on the following graph. Suppose that for every increase in the interest rate of one percentage point, the level of investment spending declines by $0.5 billion. Based on the changes made to the money market in the previous scenario, the new interest rate causes the level of investment spending to _____ by____ A-z T Tips Tips Taking the multiplier effect into account, the…
