If the unemployment rate is above the natural rate ofunemployment, holding other factors constant, whatwill happen to inflation and output?

Q: In the economy of Keynesian Island, autonomous consumption expenditure is $50 million, and the margi...

A: The current market value of goods and services (finished) in the economy is known as the aggregate e...

Q: At two points on an indifference curve,a. the consumer has the same income.b. the consumer has the s...

A:   Indifference curve is the locus of combination two goods for which the consumer derives the same l...

Q: A German sports car is selling for €65,000. What is thedollar price in the United States for the Ger...

A: The rate of exchange refers to the value of domestic currency expressed in terms of foreign currency...

Q: Economist Gerd Gigerenzer characterizes heuristics as “fast and frugal” ways of reaching decisions. ...

A: Heuristics approach is a short cut of reaching to the decision that results in the decisions biases....

Q: An efficient allocation of resources maximizesa. consumer surplus.b. producer surplus.c. consumer su...

A: Equilibrium in the market represents the stability that is achieved with the help of the demand and ...

Q: The CPI measures approximately the same economicphenomenon asa. nominal GDP.b. real GDP.c. the GDP d...

A: ANS CPI is the weighted average level of price of goods & services brought by the households in ...

Q: 1- Suppose you go to a restaurant and buy an expensive meal. Halfway through, despite feeling full, ...

A: STEP 1Buying an expensive meal is an example of sunk cost because its cost has been already paid and...

Q: Which of the following actions by the Fed wouldtend to increase the money supply?a. an open-market s...

A: The money supply in the economy is maintained by the central bank and the government of the country....

Q: a. Draw a game tree that represents this game. How many proper sub- games does it have? b. Are there...

A: " Since you have asked multiple parts, we will answer only first three parts for you. If you have an...

Q: Q) Do you expect consumption and income to be best modelled by a linear function? If not, what other...

A:   Meaning of Consumption Function: The consumption function appears to be significant factor, determ...

Q: uestion1:Donna and Jim are two consumers purchasing strawberries and chocolates. Jim’s utility funct...

A: The optimal consumption bundle is obtained at the level where the slope of the budget line becomes e...

Q: Explain it early I upvote definitely.

A: The production possibility frontier (PPF) curve shows the different combination of inputs which give...

Q: Give an example of a negative externality and anexample of a positive externality

A: Negative Externality is an externality where the consumption/production of a good causes negative ef...

Q: Solve it early I upvote definitely.  Both subparts a and b.

A: a. A market is a place where the buyers and sellers interact with each other and the goods and servi...

Q: What are demand deposits and why should they beincluded in the stock of money?

A: Demand deposits are the funds that are deposited in the bank account which are payable on demand. Th...

Q: The market for pizza has the following demand andsupply schedules:Price Quantity Demanded Quantity S...

A: The equilibrium condition in the economy can be illustrated as follows.  

Q: The city government is considering two taxproposals:• A lump-sum tax of $300 on each producer ofhamb...

A: There are two components of Total cost (TC). Total Variable Cost Total Fixed Cost Variable cost de...

Q: Which of the following conditions does NOT describe afirm in a monopolistically competitive market?a...

A: Monopolistic competition is a form of imperfect competition where there are a large number of buyers...

Q: Compute the price of a share of stock that pays a $5 peryear dividend and that you expect to be able...

A: Stock dividend is paid to share holder when they can earn by investing to the stock market.

Q: Which of the following is a positive, rather than anormative, statement?a. Law X will reduce nationa...

A: In economics, there are two main branches that explain the different kinds of the economic phenomeno...

Q: 12. Assume that an economy operates according to the sticky-wage model. The nominal wage was set to ...

A: (a) Actual price = 110 Expected price = 120 Expected price is greater than actual price (120>110)...

Q: In light of the recent financial crisis of 2007–2009, doyou think that the firewall created by the G...

A: The Glass-Steagall Act was passed on 23rd May, 1933 by the House of the Representatives. The main pu...

Q: 1. Describe an incentive your parents offered to you in an effort to influence your behavior.   2. G...

A: An incentive is an extrinsic motivator that induces an individual to carry out or abandon a particul...

Q: Q) Do you expect consumption and income to be best modelled by a linear function? If not, what other...

A: The consumption function shows the functional association between the gross national income and tota...

Q: Agenda Setting: An agenda-setting game is described as follows. The “issue space" (set of possible p...

A:

Q: At some colleges and universities, economicsprofessors receive higher salaries than professors insom...

A:   a. This statement can be true because in some colleges or in universities professors are paid acco...

Q: Price discrimination by a monopolist refers tocharging different prices based ona. the consumer’s wi...

A: Price discrimination is a practice of charging different prices for the same commodities from differ...

Q: please very very urgent  Given the utility function, U(X)=ln(X) where X > 0, with initial consump...

A: Fair game is when an investment that has no high returns for a higher risk.  Given: U(X)=ln(X) Initi...

Q: “The Fed decreased the fed funds rate in late 2007, eventhough inflation was increasing. This action...

A: Taylor's principle was given by American economist John B. Taylor to provide a stabilizing mechanism...

Q: Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market val...

A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be de...

Q: What is the future worth of the following seriesof payments?(a) $9,000 at the end of each year for 6...

A: Hi! Thank you for the question but as per the guidelines, we only answer 3 subparts at a time. Kindl...

Q: Give two examples of events that could shift thedemand for labor, and explain why they do so

A: The two examples of events that could shift the demand for labor include:- Any change in the output...

Q: umer has the utility function U(x1.x2)=10(x1)°(x2)² rginal utility of x1 (MU;) is which of the follo...

A:

Q: Why does the credit view imply that monetary policy hasa greater effect on small businesses than on ...

A: Monetary policy is the policy made by the central bank, which involve management of the interest rat...

Q: 1. Differentiate trade-off from opportunity cost.   2. If the government is to redistribute income f...

A: Trade-off and opportunity cost are closely related terms but not identical terms. Trade-off denotes ...

Q: The main reason the cost of living varies acrossregions of the country is differences in the price o...

A: The cost of living refers to the required amount of money to meet the basic expenses of a family suc...

Q: Was it ethically acceptable for president regan to fire the striking air traffic controller?

A: During the Regan administration (1981-1988), supply side policies were implemented. The policy was t...

Q: Which one is better? Equality or Equity? Give an example in which the government has done such a thi...

A: Meaning of Equality and Equity:Equality refers to the situation where the goods and services are equ...

Q: Describe some of the trade-offs faced by each of thefollowing:a. a family deciding whether to buy a ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: There are four consumers willing to pay thefollowing amounts for haircuts:Gloria: $35 Jay: $10 Clair...

A: The equilibrium price is determined by the demand for haircut and the supply of haircut. The consume...

Q: Is absolute advantage or comparative advantagemore important for trade? Explain your reasoningusing ...

A:   Meaning of Trade/International Trade: International trade or trade refers to the exchange of capit...

Q: Assume that an economy's production function is Y=1,000L1/2,so that when the marginal product of cap...

A: A nominal variable is a variable measured in terms of the prices of the current period whereas a rea...

Q: If a popular TV show on personal finance convincesAmericans to save more for retirement, the________...

A: The famous show on T.V which inspire public to save (s) more , will result into a rise in savings in...

Q: What nonconventional monetary policies shift theaggregate demand curve, and how do they work?

A: Nonconventional monetary policy is a series of steps a central bank has taken to put a stop to an un...