Q: Parliament is interested in financing the cost of their proposed childcare programme by imposing a…
A: It is unfounded to worry that employees will shoulder all costs associated with a payroll tax…
Q: According to the Figure below, since the 2008 recession short-run output, Ỹt, has been reached in…
A: Potential GDP refers to an estimation of the value of the output that an economy could have produced…
Q: Assume aggregate demand is represented by AD1 and full employment is $5.6 trillion. The equilibrium…
A: Full employment level output refers to the output that represents the natural state of economy or…
Q: 1 23 3 4 567800 A Capital (K) 1 1 1 1 1 1 1 1 1 1 Labor (L) 1 2 3 4 5 6 7 8 Total Product (TP) 10 9…
A: Production refers to the process of transforming raw materials or inputs into final products. Inputs…
Q: Other indicators of the health of the labor market that economists track are: a. New…
A: The economic indicators include the statistics that help economists to determine the health of an…
Q: Assume the following: • A firm is experiencing diseconomies of scale (decreasing returns to scale) •…
A: Economies of scale :- This is the situation when the increasing production leads to decrease in…
Q: A shipping company moves cars from Texas to Maryland with the demand curve Q = 5000 - 100P and ships…
A: Equilibrium Notably economics, the phrase "equilibrium" is frequently employed. The term…
Q: 27. A tax imposed on sellers of goods will raise * price paid by buyers & lower the equilibrium…
A: Equilibrium in the market occurs at the intersection of market demand and market supply curve.…
Q: 1. Collusion is an anticompetitive practice that could fall under the criminal code according to the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Protective tariffs are: maximum limits on the quantity or total value of specific products imported…
A: Tariffs are the trade restrictions against free trade
Q: Which of these tax systems does not conform to the idea of vertical equity? a. GST. b. A flat…
A: Vertical equity refers to an approach of tax collection wherein the taxes paid will be increasing…
Q: 14. The figure shows the supply and demand for labor in the textile industry. In each of the…
A: Equilibrium in labor market is where the labor demand curve equals the labor supply curve. The…
Q: 1. What is BCCC's Willingness-to-Sell (as a per-ounce price)? 2. What will the negotiated price…
A: In economics, Willingness-to-Accept refers to a minimum monetary amount that а person is willing on…
Q: In rural or urban areas, why some economist suggested that we need to focus on the following…
A: A rural area, often known as the countryside, is a region of land that lies outside of urbanised…
Q: 10. Which area shows the welfare loss caused by this business, relative to a firm operating at the…
A: Welfare maximizing output level occurs at the intersection of the MC and demand curve. Hence, the…
Q: . Consider a marriage market with three men and three women, all of whom prefer any match to being…
A: A matching is said to be stable if (a) every individual gets an acceptable partner and (b) no woman…
Q: Why Universal Basic Income is better than Employee of last resort?
A: A proposed government guarantee of a monthly payment to every citizen is known as universal basic…
Q: Suppose that a firm produces 450,000 units a year and sells them all for $20 each. The explicit…
A: Economic Profit = Total Revenue - Explicit cost - Implicit cost Total Revenue = Price * Quantity
Q: The industry (market) demand curve in perfect competition has a perfect competition has a slope.…
A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…
Q: The intention of deregulating markets such as air passenger transport in the late 1980s and early…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider a two-stage game of complete but imperfect information where players 1 and 2 simultaneously…
A: Imperfect Information Game is defined as a game where the information regarding the game is hidden…
Q: How will each of the following scenarios impact the market for labour Workers become more concerned…
A: Equilibrium is where labor demand curve intersects labor supply curve. Wage rate of labor is…
Q: ssume an economy at a steady-state unemployment rate with a separation rate of 0.20 per year, a job…
A: The unemployment rate is the proportion of workers in the labour force who are unemployed but…
Q: 1.(a). Calculate the point "motorboat" price elasticity of demand when Py = $10000. Use Qs…
A: Price elasticity measures the change in quantity due to change in price. Income elasticity…
Q: Look up data on the current unemployment rate, inflation rate, and/or GDP growth rate. Based on…
A: GDP is growing at the rate of 2% in the United States. This means that national income is not…
Q: Coins in people's pockets and purses are: included in M1, but not in M2. included in both M1…
A: M1 consists of Coins and currency in circulation , travellers checks , checkable deposits. M2…
Q: You have been asked to analyze what will happen to the New England market for electricity if the…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: Given the demand function D(p) = 375 – 3p², Find the Elasticity of Demand at a price of $1 At this…
A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…
Q: Two bidders compete in a sealed-bid auction for a single indivisible object. For each bidder , the…
A: Let the valuation of two bidders be : b1 & b2 Also the their valuations for the bid be : v1…
Q: Answer the next question(s) on the basis of the following consolidated balance sheet for the…
A: Excess reserves refer to the bank-held funds that exceeds the minimum reserve requirement; and it…
Q: Which of the following scenarios would result in a decrease in a bank's capital ratio? Check all…
A: The capital ratio of a bank is the percentage of a bank's capital to its risk-weighted assets. A…
Q: This question relates to the following news article New Zealand dollar drops to lowest value against…
A: Rising inflation in any economy eventually erodes away the value of the domestic currency. In order…
Q: MU₁ MU2 P₁ P2 In words, please describe why this condition must be true. C. As we showed in class, a…
A: Profit maximisation may be the "goal," but how this aim is reached is what really matters and sets a…
Q: Distinguish between a discretionary fiscal policy and a non - discretionary fiscal policy. Give…
A: The use of government spending and tax policies to influence economic conditions, particularly…
Q: What do free riding, the open access outcome, and congestion of a public good all have in common?…
A: Market failure refers to the condition where the market fails to achieve the socially efficient…
Q: A project consists of the following tasks, with task times in weeks. Use the data provided to…
A: * SOLUTION :- Given that ,
Q: How will each of the following scenarios impact the market for money The central bank conducts an…
A: Money supply shows the quantity of money supplied at each interest rate in the economy.…
Q: What's the role of over- the-counter (OTC) market, does OTC market have middle man, if it has middle…
A: An Over-the-counter (OTC) market is a system where buyers and sellers trade various stocks,…
Q: Looking at the stock information in figure 2, what would you conclude about the South African Mobile…
A: Stock markets show ups and downs and stocks market are quite volatile in nature but overall market…
Q: This question relates to the following news article New Zealand dollar drops to lowest value against…
A: To find the impact of monetary policy tightening by other central banks on the growth of New Zealand…
Q: A mining company CEO wants to help provide college education for the daughter of a high performance…
A: Given First 4 years, (beginning on the fourth birthday) the annual cash flow is $-750. Annual cash…
Q: Exercise 4 Consider a monopolist operating a car park. Customers purchase monthly parking passes.…
A: a) Inverse demand is given by 2p=520−Qorp=260−0.5Q The total revenue function's derivative is…
Q: A given firm, which is part of a perfectly competitive market, would have following cost function:…
A: A perfectly competitive firm produces at P=MC=AC in long run. TC = 2X3 - 20X2 + 200X Differentiate…
Q: Could you explain in economics concepts the situation in the image why there is incentives in the…
A: Anything that inspires someone to act is considered an incentive.Economic incentives are hence the…
Q: Assume that in December of 2021, the market for electricity was in a short-run equilibrium. Draw a…
A: Equilibrium price is the price at which quantity demanded equals quantity supplied and the market…
Q: What is the optimum of allocative efficiency?
A: Efficiency Efficiency refers to the capacity that avoids wasting materials, energy, effort, money,…
Q: Continued monetary tightening 05 October 2022 The Monetary Policy Committee today increased the…
A: The central bank across economies are pursuing tightening of monetary policy in order to combat high…
Q: In the closed economy IS-LM model, how would the responsiveness of money demand to a change in…
A: IS-LM Model: The IS-LM model explains how the macroeconomy's interest rate and total output. It…
Q: If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound, then:…
A: Equilibrium is achieved at the output level where Qs=Qd
Q: Each of 50 commuters (commuting in the same direction) must choose which of two routes to take:…
A: There are 50 commuters . So , k + n = 50 Where , k : commuters choosing route 7 , n : commuters…
Please help me with this questions wih explanantion.
Step by step
Solved in 4 steps
- Suppose the economy is self-regulating, the price level is 132, the quantity demanded of RealGDP is 4 trillion, the quantity supplied of Real GDP in the short run is 3.9 trillion, and thequantity supplied of Real GDP in the long run is 4.3 trillion. Is the economy in short-runequilibrium? Will the price level in long-run equilibrium be greater than, less than, or equal to132? Show the relevant graph and explain your answers.Calculations with the IS curve: Suppose the parameters of the IS curve are a = 0,b = 3/4, r = 2% and the real interest rate is initially R = 2%. Explain whathappens to short-run output in each of the following scenarios (consider eachseparately):(a) Te real interest rate rises from 2% to 4%.(b) Te real interest rate falls from 2% to 1%.(c) ac increases by 1 percentage point.(d) ag decreases by 2 percentage points.(e) aim decreases by 2 percentage points.Suppose that the economy's long-run output level is produces accourding to the following production funciton: Y= AK^1/2L^1/2 (will attach picture of the function) and that A = 5, K = 400 and L = 100 A. What is the economic meaning of the powers of K and L? B. What is the level of output ? produced when the economy in long-run equilibrium. C. Suppose that aggregate demand in the economy is described by the following equation:Y^d = m/kP Where M is the money supply, P is the price level and k = 1/V (velocity of money). Explain carefully where this equation is derived from and its interpretation D. Suppose that M = 2000 and that k = 2. What is the price level P at which the economy is in long-run- equilibrium? Plot such an equilibrium on a diagram with P on the vertical axis and Y on the horizontal axis, by distinguishing between the short-run and the long-run equilibrium. E. Now suppose that starting from the equilibrium of (b) and (c), the Central Bank increases M to 3000. Calculate…
- 18 - : If aggregate demand increases in an economy while aggregate demand is constant in the short run, which of the following statements is correct for the new equilibrium point?A) price decreases and national income increasesB) price rises national income risesC) price increases and national income does not changeD) price goes up and national income goes downE) price decreases and national income decreases.19 - : In which of the following expressions is the equation of change given correctly?A) MV=VK B) MT=PV C) MV=PT D) MP=VY E) MV=PDescribe the behavior of consumption, investment, labor, productivity, wages, the price level and the money supply over the business cycle both in terms of correlation, magnitude and lead vs lag. Give the economic intuition of the results on consumption, investment, produc- tivity, wages and price levels. [Note, I am looking for the correlation between each of these items and income. Give leads and lags only when the most important correlation is not contemporaneous. You may trust the author of the book on this one.]Assume that (a)the price level is flexible upward but not downward and (b) the economy iscurrently operating at its full-employment output. Other things equal, how willeach of the following affect the equilibrium price level and equilibrium levelof real output in the short run?· An increase in aggregate demand.· A decrease in aggregate supply, with no change in aggregatedemand.· Equal increases in aggregate demand and aggregate supply.· A decrease in aggregate demand.· An increase in aggregate demand that exceeds an increase inaggregate supply.
- Consider a closed economy, where wages are sticky in the short run. The consumption function isC = c0 + c1(Y − T ), where the marginal propensity to consume c1 is equal to 0.75. Initially the economy is in equilibrium at Y = Y* and P = P e, where P e is the price level that was expected when agents agreed their fixed nominal wage contracts. The short-run aggregate supply curve (SRAS) is horizontal. Suddenly the government increases government spending G by $500. 1. By how much will output Y change (compared to its initial level before the change in G) in the long run, after wage contracts are renegotiated? 2. By how much will consumption C change (compared to its initial level before the change in G) in the long run, after wage contracts are renegotiated? 3. By how much will investment I change (compared to its initial level before the change in G) in the long run, after wage contracts are renegotiated?question 3Consider the AS-AD and three-equations models of a closed economy discussed in the course.(a). Write down the expressions for the AS and AD curves and interpret the expressions: what is the intuition behind the two curves? What must be true of the model parameters and variables in the long-run equilibrium, i.e. in the steady state?(b). Analyse the effects of an oil supply shock that causes a temporary increase in inflation, using the three-equation model. Assume that the shock lasts for one-period and then assumes the value 2%. Describe the mechanisms that bring the economy back to long-run equilibrium. What happens to aggregate demand?(c). Consider an economy that starts out in steady state when the central bank decides to make the inflation target more ambitious. Analyse the effects of a decrease in the inflation target from ? to ??. Explain the mechanisms behind the adjustment to the new steady state.Suppose that Dell Corporation has 20,000 computersin its warehouses on December 31, 2019, ready tobe shipped to merchants (each computer is valued at$500). By December 31, 2020, Dell Corporation has25,000 computers ready to be shipped, each valuedat $450.a. Calculate Dell’s inventory on December 31, 2019.b. Calculate Dell’s inventory investment in 2020.c. What happens to inventory spending during theearly stages of an economic recession?
- (17) Assume that the economy begins in long run equilibrium and the central bank increases the target interest rate. In the short run, what happens to the level of GDP? Group of answer choices (A) It stays the same (B) It goes up (C) It goes downa. What are the short-run equilibrium real GDP and price level in 2019?b. What is the long-run equilibrium real GDP?c. Is the short-run macroeconomic equilibrium a full-employment equilibrium, belowfull-employment equilibrium, or above full-employment equilibrium?d. In transition to the long run, how would the wages in this economy change?e. Following from d, explain how would the short run supply curve move to its long runposition, as the changes in the nominal wages take effect.f. What will the long run price level be?Table 24.4 describes Santhers economy. Plot the AD/AS curves and identify the equilibrium. Would you expect unemployment in this economy to be relatively high or low? Would you expect prices to be a relatively large or small concern for this economy? Imagine that input prices fall and so AS shifts to the right by 150 units. Identify the new equilibrium. How will the shift in AS affect the original output, price level, and employment?