In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n) ______ gap equal to ______ percent of potential GDP.
Q: B: Theory: Market power Terminology: diminishing returns to scale (DRS), constant returns (CRS),…
A: A monopoly refers to a market condition in which there are only on single seller/firm. The firm…
Q: below describes the demand curve facing a monopolst. Use the nation in the Quantity 1 2 Price $50…
A: introduction A monopoly as a market structure is a market structure with a single seller and many…
Q: A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000,…
A: Based on a nation's total income levels, the definition of poverty might vary; often, it is…
Q: 5
A: The market demand function represents the total quantity of a good demanded by all individuals at…
Q: Which of the FF. addresses distributional issue? A. providing scholarships to children of poor…
A: Distribution, to put it simply, means to share each person's effort. The price of production inputs…
Q: Select a developing country that interests you and search for evidence suggesting which factors are…
A: Introduction; A developing country is defined as a sovereign state which has less developed…
Q: • Draw a correctly labeled graph showing each of the following labor supply curves: • An individual…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts for you.…
Q: Which of the following can experience disinflation?
A: Inflation is the rate at which the general price level in the economy increases. Disinflation is…
Q: A government collects 700B in tax revenue. It allocates $40B to the justice system and $95B for its…
A: The revenue that is collected by the government from property ownership and transfer taxes, income…
Q: TRUE OR false.. The firm should shut down its operations if the total revenue cannot cover the total…
A: At a marketplace, a firm will shutdown it's business of it is unable to recover the cost incurred in…
Q: UK manufacturer of particle board furniture is considering investing in a new stamping machine. The…
A: The desire of a consumer to purchase a product or service is described by the economic principle…
Q: Consider following payoff matrix for two firms Firm 1 Firm 2 High Price Low Price High Price O HP…
A: Provide information: According to the given information in the question- Firm-1/Firm-2 High Price…
Q: Explain each option in details. Thank you . which of the following reasons we discussed…
A: Based on the number of buyers and sellers, the ease of entry and exit and the competition in the…
Q: wi Wage($1000) AS Refer to Exhibit 5-3 which shows the demand and supply of a college athlete. If…
A: The consumer surplus is the area above the price line andthe area below the demand curve the…
Q: MR 9 What is the value of consumer surplus if this market is perfectly competitive Select) W the…
A: If the market is perfectly competitive then at the equilibrium the P = MC Locating this point on…
Q: 5. Consider a modified version of the ultimatum bargaining game. The proposer's payoff is as in the…
A: Subgame perfect equilibrium represents the set of general dynamic games. It is a form of…
Q: Provide one example when the monopoly power leads to a dead weight loss, and one example when it…
A: When the monopolist is not able to discriminate in the market and charges a uniform price for the…
Q: Gino derives utility from only two goods, carrots (Qc) and donuts (Qd). His utility function is as…
A: A consumer always maximizes utility at a point where her Marginal Rate of substitution is equal to…
Q: In 2008 there was an increase in uncertainty about the quality of structured financial products that…
A: A mortgage or a group of mortgages serve as the collateral for a mortgage-backed security, or MBS.…
Q: 37.The demand curve for loan-able funds slopes downward to the right because: mey -----------------
A: Investment is the source of demand for loanable funds. Businesses demand loanable funds for…
Q: A manufacturing firm has budgeted 40 thousand per month for labor and materials. If $x thousand is…
A: N(x,y) = 2xy-6y -------> production function Where N is the monthly output (in units) x is the…
Q: I. Country B donates PhP 1.3 billion of funds to country A for rehabilitation. II. A foreign company…
A: Balance of Payment: The balance of payments is the part of the national accounts where a country…
Q: Total Output 1 2 3 4 5 6 7 8 9 10 Price $ 100 90 80 70 60 50 40 30 20 10 Marginal Average Revenue $…
A: A non-discriminating monopoly firm produces at MR = MC to maximize the profit. Profit is total…
Q: Three alternatives are being considered for the production of equipment at a tissue factory. The…
A: Given, MARR = 15%
Q: A firm produced two types of television x of type A and y of type B per year (in thousands). If the…
A: The firms maximize their profit when the marginal revenue is equal to the marginal cost (MR=MC).
Q: Reserves = First national bank $1,500 Loaned = $8,500 Deposits $10,000 Total Reserve = Required…
A: Reserves are the part of deposits that is kept out from the deposits by the bank. Excess reserve =…
Q: Refer to the table. For a firm operating in a competitive market, the price is Quantity Total…
A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…
Q: An independent contractor is trying to decide whether to lease new equipment now or save his money…
A: Present value of cashflows is computed by discounting future cash flows with the help of discount…
Q: Question 4 (a) explain the term inflation and how it is measured. (b) Describe the fiscal and…
A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…
Q: In a panic, why is there an incentive for depositors to rush the bank? O Banks make money from…
A: One of the main function of bank is accepting deposits. Deposits refers to the money placed into…
Q: What's the meaning of a combination of goods which are lying outside the budget line? A. the given…
A: Budget line represents the budget of the consumer that can be used to purchase different…
Q: Round these answers to the nearest whole number Round these answers to the nearest penny Output…
A: Total cost is the sum of fixed cost and variable cost Average cost is the cost of production per…
Q: Consider three cities with populations of 150,000 (City A), 140,000 (City B), and 10,000 (City C).…
A: Check below mention step for the solution
Q: The demand and cost equations for the production of a certain ancillary component of HDTVs are given…
A: Given information: p(x) = 300 - (1/30)x ------------> demand equation C(x) = 15000 + 30x…
Q: Refer to Figure 14.5. Assume the interest rate equals 8% and the money supply decreases from to .…
A: Equilibrium in money market is when the money demand curve intersects the money supply curve. The…
Q: Best Lights wants to prevent Bright Lights from entering the light bulb market, ff Best Lights…
A: Here we are explaining the strategic actions of 2 firms where one firm already exists in the market…
Q: Calculate Current ratio based on the following information Cash 15,000.00 Prepaid Insurance…
A: A liquidity ratio called the current ratio assesses a company's capacity to settle short-term debts…
Q: In economics, cultural norms are a given-not a factor that can be critiqued and changed for economic…
A: Economic growth and development are referred to as a positive growth rate if the economic…
Q: This question is based on the following diagram. Assume that the dashed lines are parallel and that…
A: Provided information: A total product curve for its input and output is provided in the question…
Q: A cash prize was invested 5 years and 5 months ago at 12% compounded semi-annually for a puzzle that…
A: Present value is is the value of investment in today's dollar. Future value is the value of…
Q: QUESTION 15 Based upon the graph below as LASO moves to LAS 1 Price level (GDP deflator, 2012 - 100)…
A: The different price at which producer supply goods in an economy is represented by AS(aggregate…
Q: Which of the following is the best example of how a country might improve what economists call…
A: Economics is the study of problem of scarcity of resources and how these scarce resources can be…
Q: For Nos 45-47: The following cash flows are provided A 7.00% B. 8.40% EDY C. 6.00% D. 6.50% BTCF…
A: EOY BTCF 0 -1000000 1 1000000 2 1000000 3 750000 4 800000
Q: Consider a firm with production function: Y-KiLi. Suppose there is perfect competition. The real…
A:
Q: Item Imports of goods and services Foreign investment in the United States Exports of goods and…
A: In economics, a country's current account records the value of exports and imports of both goods and…
Q: arry, Megan, Raphael, Susan, and Janet share a five-bedroom house and are all huge Pittsburgh…
A: A significant characteristic of the marketplace is that in some circumstances it produces what we…
Q: Suppose that you and a friend have started a pizza delivery business. First you had to find a shop…
A: Fixed cost refers to the cost that remains constant or same at all level of output. It does not…
Q: The consumption function shows a positive relationship between an individual's stock of wealth and…
A: Disposable income is income minus net taxes. i.e., Disposable income = Income - Net taxes…
Q: All economic market structures earn normal profit and are considered to be in the long run when…
A: In economics, a firm makes either a loss, a normal profit, or an economic profit in the short run.…
Q: Us backward induction to solve the decision tree below. Player 1 Up O Upl O (Up, Down) O(Down, Up)…
A: We solve all the sequential games using backward induction. This means we first solve the moves made…
In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion.
Macroland has a(n) ______ gap equal to ______ percent of potential GDP.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- As part of the response to the Covid-19 virus, the Federal government passed a 2 Trillion-dollar bill. This increase in spending must result in which of the following? lower future taxes higher government spending some combination of lower future government spending and higher future taxes all available are true two of the available are truePotential real GDP is defined as: Group of answer choices The quantity of output that the economy can produce when it is above the natural rate of unemployment. The quantity of output that the economy can produce when it is at less than potential employment of its resources. The macro equilibrium The quantity of output that the economy can produce when it is at full employment of its labor and physical capital.If real GDP is $21 trillion and potential GDP is $20 trillion, how big is the output gap? ____ percent of potential GDP. Thanks!
- The Coronavirus Aid, Relief, and Economic Security Act (CARES) helped to Multiple Choice control the rising inflation due to the COVID recession. increase indirect payments to consumers using tax cuts. widen the GDP gap by increasing the government's debt. shrink the GDP gap that emerged due to the COVID recession.The macroeconomic effects of federal investment can decrease if : a.State and local governments tax investment spending towards other non-investment areas. b.State and local governments complement federal policy by also increasing investment. c.State and local governments keep local investment spending unchanged. d.State and local governments substitute investment spending towards other non-investment areas.Potential real GDP is equal to $10,000 and the current level of real GDP is equal to $9,000. What does the output gap equal (%)?
- options: a contractionary fiscal a contractionary monetary a recessionary an expansionary fiscal an expansionary monetary an inflationary equal to greater than grew inflation less than receded the same as unemploymentNeed AI free solution Amid an economic recession, a government decides to implement an expansionary fiscal policy. This policy includes increasing government spending on infrastructure projects and reducing taxes to stimulate demand and create jobs. While the policy aims to boost economic activity, it also risks increasing the national debt and potentially leading to higher inflation. In this scenario, the primary objective of the expansionary fiscal policy is to: ) Reduce government spending and increase taxes A B) Stimulate economic activity and job creation C) Focus solely on long-term economic growth D) Increase the national debt and inflationBecause of automatic stabilisers, the government budget will tend toward deficit during a recession tend toward balance during a recession tend toward deficit during an expansion remain in balance tend toward surplus during a recession
- Which of the following policies can the government implement to stimulate investment? Group of answer choices Reduce taxes on interest income or capital gains Accelerate businesses' depreciation allowances Reduce budget deficits All of these are correctIs is possible for federal investment to have a negative rate of return? Yes, if the spending results in a strong crowding-out effect or if state and local governments substitute towards federal investment by reducing stateand local investment. Either would potentially reduce future productivity and output (GDP), resulting in a negative return. Yes, if the spending results in a weak crowding-out effect or if state and local investments complement the increase in federal investment by. Either would potentially reduce future productivity and output (GDP) and hence result in a negative return. No. At worst, federal investment can have no future return as the expenditure offered some form of service (ex. jobs training) or useful infrastructure (ex. highways). No. If in the future there were a negative return, the federal government would increase expenditures again to offset it.Supply-siders argue that: a. reductions in government spending cut infrastructure investment which hurts private sector investment. b. increases in government spending increase infrastructure investment which helps private sector investment. c. increases in government spending causes private sector investment to fall because the government pushes up interest rates. d. reductions in government spending cause private sector investment to fall because the government pushes up interest rates by borrowing. e. increases in government spending causes consumption spending to fall because the government purchases push up interest rates.