Answered: Give some examples of economic…

Business

Economics

Give some examples of economic questions where the concept of present dis-counted value would be useful.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 27CTQ: Describe a situation, either a government policy situation, an economic problem, or a private sector...

See similar textbooks

Related questions

Q: Explain why a house price index can reflect market house price changes more accurately than median…

A: INTRODUCTION The index (list), otherwise called the HPI, is aggregated by the Federal Housing…

Q: 25) The amount by which potential GDP (a atural rate of unemployment. (b) aggregate cost of…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: **You If the average level of nominal income in a country is $65,730 and the Consumer Price Index is…

A: Real income is income adjusted for inflation.

Q: Distinguish between nominal and real interest rates. Which is more relevant in making investment and…

A: Real interest rate was taken into consideration to remove the effects of inflation, so that the real…

Q: The data in the tabie below are for the economy of Merton, which has a natural rate of unempioyment…

A: Unemployment: Unemployment is an economic situation in which all those individuals who are actively…

Q: How Structural Change Model be it implemented accordingly. Explain.

A: Structural change refers to a significant change in the way an industry or market operates,…

Q: The accompanying graph depicts unemployment insurance benefits paid by the U.S. government over…

A: Unemployment insurance payments (benefits) are planned to give impermanent monetary help to jobless…

Q: Which would be more difficult to forecast 10 years fromnow: the number of 60-year-olds or their…

A: For forecasting, we use past data to predict future data.

Q: Distinguish between nominal and real interest rates. Which is more relevant in making investment and…

A: Inflation defines the average amount of increment in price of final commodities and services. It is…

Q: (c). Given the national-income model: Y = C + lo + Go C= a + B (Y - T) (a > 0,0 0, 0 < 6 < 1) a-…

A: Y = α - βy + I0 + G01-β + βδwhere α = Autonomus Consumptionβ =MPCI0 = Autonomus InvestmentG0 =…

Q: The country of Veridian has a tax system identical to that of the United States. Suppose someone in…

A: Tax on nominal gain = 20% Nominal Gain = 100000 - 20000 = 80000 deera Tax = 20% of 80000 deera =…

Q: How is NAIRU supposed to be a "better" definition than "Natural Rate"? Are either of these good…

A: In an economy, the terms Nairu and natural rate of unemployment are used to explain market condition…

Q: If output is $7500, the level of capital is 600, capital's share of total income is 0.6, and the…

A: The central idea of neoclassical distribution theory is that money is earned through the production…

Q: Describe the method of Actual-Dollar Analysis?

A: The actual –dollar analysis is one of the approaches which is used to find equivalence calculation…

Q: If the economy were at a steady-state unemployment rate with a separation rate of 0.02 permonth and…

A: The unemployment rate is used to measure the unemployed labor force in an economy. It shows the…

Q: ers to the professed interest rate. a Nominal b Effective c Ordinal d Actual

A: Professed interest rate or stated rate is the rate that banks or lender shows the interest rate…

Q: State with valid reason, which of the following statement is true or false: a. Gross Value Added at…

A: An intermediate good, also known as a consumer good, is a product that is used to create a final…

Q: Please help. Can you draw a model or IS-LM (income spending money demand and supply model)…

A: IS-LM Model IS-LM model is used in economics to show the relationship between the interest rate…

Q: A price index does not measure transportation costs? True or False

A: The average change in prices between periods or the average difference in prices between places is…

Q: Consider the following national income model : Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y…

A: Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y Where Go = 187 Y = C + I + G0or Y = C + I + 187or…

Q: To determineThe impact of increased production without increased inflation.

A: The aggregate demand curve shows the amount of goods and services that all consumers in the economy…

Q: Calculate the value of GVAFC IF:- Sales = $180 Change in stock = $30 Purchase of raw material =…

A: The given information is as follows:- Sales = $180 Change in stock = $30 Purchase of raw material =…

Q: Assume you are an economist at Ministry of Economy. During the budget consultations, a participant…

A: The interaction of labor demand by the business firms and labor supply by the workforce of the…

Q: QUESTION 10 Suppose that the capital stock depreciates. Which picture best represents the change in…

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

Q: What is the economic condition that results from the decrease in SRAS called?

A: When the AD or SRAS curves shift, shocks occur. If the economy shifts suddenly, the aggregate demand…

Q: Fiscal Policy- Ask FRED The accompanying graph depicts the unemployment insurance benefits paid by…

A: Fiscal policy:From the given graph, the year spend more GDP on unemployment insurance is

Q: Which of the following contributed to the growth of income inequ the past 25 years? O Government tax…

A: The income wealth inequalities are rising rapidly in USA. The share in GDP of 10 % people of country…

Q: itutions on econom

A: Extractive institutions are those which are designed in order to benefit a few and privileged elites…

Q: n a circular flow of income in an economy, the govt. is seen as playing the role of an unbias…

A: The circular flow of income is an economic model in which significant exchanges are represented as…

Q: MS P buying securities selling securities MD of the following is the likely cause of the shift in…

A: Demand for money refers to the desire to hold financial assets in cash or bank deposits rather than…

Q: How has minimus wages affected the labor market, in relation to economic growth, inflation and…

A: Minimum wages affect the labor market in relation to economic growth, inflation and employment.…

Q: Find the current economic figures for hana between 2013-2020 related to below dicators at the end of…

A: Ghana is a country located in west of Africa. Thought country's overall score of economic condition…

Q: What is comovement? How is comovement related to the business cycle facts presented in this chapter?

A: What is comovement? Many macroeconomic indicators move in lockstep over the business cycle, which is…

Q: (c). Given the national-income model: Y = C + lo + Go C = a + B (Y - T) (a > 0,0 0,0 < 6 < 1) a-…

A: The national income is the sum of aggregate expenditure incurred by various sectors of the economy…

Q: a) Explain the difference between real and pominaLGDP

A: As per bartleby guidelines, in case of multiple questions, First question is answered. Please post…

Q: Discuss in depth the three instruments used to determine the "health" or performance of our economy.…

A: An economic cycle is the cyclical movement of an economy as it swings from growth to recession and…

Q: The Nominal Interest rate and inflation rate in an economy is same. What will be the real interest…

A: The interest rate which is irrespective of inflation is known as nominal interest rate. And the…

Q: Which one of the following variables in pro- cylical? (a) the unemployment rate (b) the job-finding…

A: A positive correlation between the value of a good, a service, or an economic indicator and the…

Q: orking full time. 150 people have been looking r work over the last month, while 50 people ould like…

A: The unemployment rate measures the share of workers in the labor force who do not currently have a…

Q: what is the relationship between government stablity and higher education

A: Education is a very good predictor of results in life, including favorable attitudes and…

Q: Name several forms of indexing in the private and public sector.

A: Indexing refers to the measure/indicator of something. In the financial market, indexing is used as…

Q: Bob wants to move to California so he quits his job. ) A. seasonal B. frictional ()C. structural O…

A: Unemployment is a term referring to individuals who are employable and actively seeking a job but…

Question

Give some examples of economic questions where the concept of present dis-
counted value would be useful.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Name several forms of indexing in the private and public sector.
Between 1929 and 1933, NNP measured in current prices fell from $96 billion to $48 billion. Over the same period, the relevant price index fell from 100 to 75. a. What was the percentage decline in nominal NNP from 1929 to1933?b. What was the percentage decline in real NNP from 1929 to 1933? Show your work.
You have the following information:employee compensation $3.5 trillionnet interest $1.3 trillionrental income $2 trillionproprietor's income $2.6 trillioncorporate profits $3 trillionindirect business taxes $0.8 trilliondepreciation $1 trillionNet national product is equal to $___ trillion
Explain Net present value with the formula.
How can we determine the economic loss (or gain) in present worth caused by inflation?
What are the barometers that the National Bureau of Economic Research’s Business Cycle Dating Committee use? (Check all that apply) A.Employment B.Industrial production C.Personal income minus government transfer payments D.
Evaluate as accurately as you can how each of the following individuals would be affected by unanticipated inflflation of 10 percent per year:a. A pensioned railroad worker.b. A department-store clerk.c. A unionized automobile assembly-line worker.d. A heavily indebted farmer.e. A retired business executive whose current income comes entirely from interest on government bonds.f. The owner of an independent small-town department store.
A price index does not measure transportation costs? True or False
Over the last century, during what periods was the U.S. inflation late highest and lowest?
The prime interest rate is the rate that banks charge their best customers. Based on the nominal interest rates and inflation rates in Table 19.10, in which of the years would it have been best to be a lender? Based on the nominal interest rates and inflation rates in Table 19.10, in which of the years given would it have been best to be a borrower?
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the GDP deflator to convert from nominal to real would be more appropriate than using the CPI.
Do you think perfect indexing is possible? Why or why not?