Long-run economic growth can be achieved with Group of answer choices A rightward shift in the aggregate demand curve. A rightward shift in the long-run aggregate supply curve. Neutral monetary policy. Contractionary fiscal policy.
Q: What types of policy are most likely to affect the natural rate of unemployment? a) Active demand…
A: Inflation and employment are directly related to each other. With higher inflation there always…
Q: What are the methods of exchange control?
A: The rate at which one country's currency can be exchanged for another country's currency is known as…
Q: “The Federal Open Market Committee today voted to raise its target for the federal funds rate by 25…
A: Monetary and fiscal policies are both employed to control economic activity over time. Monetary…
Q: Jamal has a utility function U = W1/2, where W is his wealth in millions of dollars and U is the…
A: Answers. Part - 1 By dividing the utility gained from each conceivable outcome by the corresponding…
Q: When testing for wage discrimination based on race, which of the following variables are control…
A: In the marketplace, wage discrimination refers to the situation when a firm is offering different…
Q: Take a look at the graph below. Which area shows the reduction in consumer surplus that results from…
A: A market is a location where two or more parties exchange products, services, and information. A…
Q: D Question 21 Value-based pricing begins with analyzing O product attributes and product features O…
A: Value-based evaluation is a system of setting costs principally founded on a customer's apparent…
Q: Thandi has R700 to spend on hamburgers and transport. A humburger costs R35 while a car trip is R25.…
A: The budget line implies the combination of two goods that consumers can buy at the given income and…
Q: Use the following to answer question: Interest rate, r (a) MS, MS₂ MD Quantity of money, M remain at…
A: Money market equilibrium happens at the interest rate at which the amount of money requested rises…
Q: What is the smith's theory of absolute advantage in international trade?
A: Adam Smith, the father of economics in his book " Wealth of Nation" stated the concept of absolute…
Q: Receive with the help of indifference curves and the budget outline the optimal consumption plan.…
A: Individual demand: It refers to the demand of an individual or a household. This demand occurs when…
Q: Persons whose influence on others is limited to the appointed managerial authority of their…
A: According to Bartleby guidelines we can only answer first part of the questions. You can post second…
Q: Question 22 Consider the following Cournot duopoly. Both firms produce a homogenous good. The demand…
A: We have duopoly model with asymmetric information about the marginal cost of firm 2.
Q: curves and the budget outline the optimal consumption plan. How do you transfer the optimal…
A: *Answer: Following are the determinants of individual demand - 1. ) Income level 2.) Price of the…
Q: The figure below shows the domestic supply and demand demand for shoes. As labeled, the no-trade…
A: The equilibrium price has been set up where demand and supply are equal. The world price is below…
Q: (b) Assume that year 2020 is the base year. There are only two goods produced domestically and the…
A: Inflation means general increase in price level in the economy.
Q: What are the methods of exchange control?
A: Introduction - Exchange controls refer to all the limitations, procedures, and frameworks that a…
Q: Deterring rivals is a major part of competitive strategy. Consider the following entry-deterrence…
A: (a) Incumbent/ Entrant Enter Stay Out Price Low -1, -1 4, 0 Price High 2, 2 4, 0 The above…
Q: What are the effects of a monetary contraction? Show the AS-AD and IS-LM with two stages and the…
A: The Federal Reserve Bank controls and regulates the flow of money or funds under the circumstances…
Q: According to the Foreign Corrupt Practices Act (FCPA), bribery involves: What is offered, but not…
A: Bribery refers to offering the person of authority money or any asset to make the person take…
Q: The following national accounting data are available for an economy for 2020. GDP Household…
A: National savings is the total savings of an economy which includes the savings of households,…
Q: 4) Suppose you measured the gap between the unemployment rate and the natural rate of unemployment…
A: When talking about natural rate of unemployment, it is the unemployment rate in the long-run, while…
Q: Question 1 1. A town needs to build a new flood mitigation barrier. The town engineer has selected…
A: For Earthen Barrier; Initial cost (P) = $9,000,000 Annual maintenance cost Interest rate…
Q: 1(a) In the Solow Growth Model the output function for the economy is given by: Y = 1.02 K 1/3 (L x…
A: The golden steady state level is reached where the consumption is maximized . The slope of…
Q: What are Australia’s opportunities in global value chains (GVCs) in Asia Pacific focusing on GVCs in…
A:
Q: Bescribe and show the circumstances under which H can be worse off from trade relativ arky.. escribe…
A: I) Describe and show the circumstances under which H can be worse off from trade relative to…
Q: 5. Suppose after you graduate from Algoma University, you find a job that pays you $75,000 a year.…
A: Case-1 no.of years n=30years=30*12=360months Interest rate (i) =3.5% per year = 0.35/12 = 0.00292…
Q: What goal of foreign policy is being achieved in the following example: United Nations (UN)…
A: The aim of United Nations (UN) is to promote security and peace among the nations. It promotes…
Q: draw and explain the life cycle path of hours worked for a person who, at age 40, suddenly wins 73…
A: Franco Modigliani introduced the life-cycle theory in 1957. According to the theory, people try to…
Q: Use the table and graph below to answer the following question: identify the ATC, AVC, and MC…
A: In the mentioned question we have been asked which curve is AVC, ATC and MC. Also it is asked which…
Q: Suppose the government assigns property rights to the airlines; that is, airlines have the right to…
A: No one is hurt by market activity, and the market performs at its best when there are no…
Q: A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight and…
A: Given The contractor pays to manufacturer = P350,000 Freight and insurance charge =P18000 Broker's…
Q: Calculate the SNAP benefit for the family below A family of five living in Reading, PA. The father…
A: A government programme called SNAP (Supplemental Nutrition Assistance Program), formerly known as…
Q: In the last six months, the price of fuel for cars has increased very substantially in many…
A: Price elasticity of demand refers to the percentage change in the quantity of the good demanded with…
Q: Which of the following statements is true about the difference between monopoly and monopolistic…
A:
Q: For a certain company, the cost function for producing items is C (x) = 30 x + 150 and the revenue…
A:
Q: H5. 1) The ER between the Swiss franc and the US dollar is one to one in the spot market. The…
A: Exchange Rate is the conversion ratio between two different currencies of two different countries.…
Q: Consider this profit-maximizing firm competing in a perfectly competitive market with a market price…
A: When there are many buyers and sellers, there is perfect competition. At prices set by the market,…
Q: Why leads a monopoly to welfare losses? Describe the different market equilibria of perfect…
A:
Q: Given the utility function U(1, 2) = x₁²x₂²₁ c/2/2, which of the following does NOT represent a…
A: Given the utility function U(1, 2) = 2 , a monotonic transformation of this utility function would…
Q: per capita, real U.S. dollars (2000) $50,000 40,000 30,000 20,000 10,000 5,000 1,000 Nigeria Liberia…
A: Involving GDP as a proportion of monetary government assistance or way of life in a nation is…
Q: 11 Which of the following affect the supply of U.S. dollars on the foreign exchange market?…
A: PERCIEVED RISK ON INVESTMENT THE PERCIEVED RISK CAN INFLUENCE INVESTMENT AND US DOLLAR, WHEN THE…
Q: Over the past few decades, what no so very bright strategies were utilized by financial institutions…
A: Option 5 is correct (1,3,4 are correct)because financial institutions invested in fairly…
Q: 1. In which of the changes to market conditions might we be certain that the market price will…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: The basic difference between macroeconomics and microeconomics is that: O A. microeconomics is…
A: Microeconomics is considered to be the study of households, individuals and firms and their role in…
Q: What are the objects and methods of exchange control?
A: Exchange controls refer to the imposed controls and restrictions by the government on private…
Q: . Which statement must be false? a) A firm with constant returns to scale in production will not…
A: When Average cost remains constant - there are constant returns to scale When A.C rises - there are…
Q: The only way a monopoly can survive is through anti-competitive behavior such as constructing…
A: Monopoly is the single firm in the market. It is price maker.There is no difference between firm and…
Q: Assume that the following data describe the condition of the banking system. Use this information to…
A: Answer (a) M1 = Transaction deposit + Cash held by public M1= $900 billion+ $500 billion M1= $1400…
Q: cy require purch nit of another currency. To put it simply, it is the of foreign currency. This rate…
A: exchange rate, the price of a country's money in relation to another country's money. An exchange…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- An expansionary fiscal policy is usually employed by the government to a. shift the short-run aggregate supply curve rightward b. close a recessionary gap in an economy c. close an expansionary gap in an economy O d. shift the short-run aggregate supply curve leftward ChThe government will have _____ flexibility in implementing countercyclical fiscal policy when the outstanding stock of government debt is _____ relative to the size of GDP. a.More; large. b.More; small. c.Less; insignificant. d.Total; large. e.Less; small. Consider an economy initially in a long-run equilibrium. A positive AS shock will _____ the price level and _____ output in the short run. In the long run, the price level will _____ and output _____. a.Increase; increase; return to its initial level; will be restored to potential output. b.Increase; increase; decrease; will be restored to potential output. c.Decrease; increase; return to its initial level; will be restored to potential output. d.Decrease; increase; decrease further; will be restored to potential output. e.Decrease; decrease; decrease further; will decrease further.During a recession, fiscal policy measures to bring the economy back to long-run equilibrium can include Select one: a. all answers are correct b. an increase in the exchange rate c. temporary wage subsidy d. a decrease in interest rate
- From an initial long-run equilibrium, if aggregate demand grows slower than long-run aggregate supply while the short-run aggregate supply is unchanged, then the proper fiscal policy is to Group of answer choices increase government purchases. decrease government purchases and tax rates by the same amount. increase the money supply. increase lump-sum taxes.Which of the following statements about Fiscal Policy is INCORRECT?(a) In order to combat inflation, the South African Reserve Bank must apply acontractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on aggregate supply in the AD‐AS model.Assume an economy that is operating above full employment. Draw a correctly labeled aggregate demand and aggregate supply graph and show each of the following: The long-run aggregate supply curve. Current price level and output levels, labeled PLe and Ye Full employment output, labeled Yf a. Identify one fiscal policy action that could resolve the problem. b. Using your graph above, show the short-run effects of the action you identified on each of the following: Aggregate demand. Explain (use the cause and effect chain you learned in the lesson) Output Price Level c. Using a correctly labeled loanable funds graph, show the effect of the policy you identified in your resolution of the problem in section a on real interest rates. d. Given the change in the real interest rate in c. What is the impact on each of the following? Investment Economic growth rate. Explain The international value of the dollar. Explain. e. Now assume instead that the government takes no…
- Expansionary fiscal policy will: a shift the aggregate demand curve left. b shift the aggregate demand curve right. c shift the short-run aggregate supply curve left.Is the following true, false or uncertain? Assume that workers supply effort based on their expected real consumption wage and consume a basket with a non-negligible component of imported goods and services. The government in an open economy implements a contractionary fiscal policy (from an initial medium-run equilibrium) motivated, for example, by its desire to reduce national debt. This leads to lower real wages and higher unemployment in equilibrium. Hint: you may want to compare this with the case in which the initial two assumptions do not hold. Use graphs if possible.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 unemployment
- Which of the following statements about Fiscal Policy is INCORRECT? choose the correct answer(a) In order to combat inflation, the South African Reserve Bank must apply acontractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on aggregate supply in theAD‐AS modelDifferentiate between the following economic terms:1) The short-run aggregate supply curve and long-run aggregate supply curve 2) Total product and marginal product 3) Expansionary fiscal policy and contractionary fiscal policy 4) Individual supply of labour curve and market supply of labour curveAssume an economy that is operating above full employment. Draw a correctly labeled aggregate demand and aggregate supply graph and show each of the following: a. The long-run aggregate supply curve. b.Current price level and output levels, labeled PLe and Ye c. Full employment output, labeled Yf 2. Identify one fiscal policy action that could resolve the problem. 3. Using your graph in question 1, show the short-run effects of the action you identified on each of the following: a. Aggregate demand. Explain (use the cause and effect chain you learned in the lesson) b. Output c. Price Level 4. Using a correctly labeled loanable funds graph, show the effect of the policy you identified in question 2 on real interest rates. 5. Given the change in the real interest rate in question 4. What is the impact on each of the following? a. Investment…