Q: Given the date for a real property: Value Description Amount Market Value P1,000,000 Assessment…
A: According to the question, The market value of the real property = $1,000,000 Assessment Level =…
Q: 6. Figure: Random Allocation Under Price Ceilings A $34 B 30 с 24 D 20 Price Celling 17 1200 1500…
A: When the price charged is greater than or less than the equilibrium price set by market forces of…
Q: One of the major differences between the liberal and conservative political ideologies in the United…
A: When the government employs measures to change the market condition then those measures are…
Q: Question Assume a competitive market is in equilibrium. There is an increase in demand, but no…
A: The curve that depicts various quantities of goods and services being demanded by individuals at…
Q: Suppose in an economy with a tariff on the import of sugar, if the domestic demand for sugar…
A: Given
Q: Question Two Explain the concept of the Expected Utility Hypothesis (EUH) and state all relevant…
A: When there is uncertainty about the result, this theory estimates the likely utility of an action.…
Q: valuate the following statement: "When it comes to public goods, individuals do not reveal their…
A: 'Public goods' are goods and services that are available to everyone in a society.In nature, public…
Q: A process has a cycle time of 10 minutes. The throughput time is 10 hours. If the throughput time is…
A: The net duration needed to manufacture a product covering from the start to the end is termed…
Q: d. What is the socially optimal level of emissions for the industry per month? What would be the…
A:
Q: Explain the characteristics monopoly, oligopoly, monopolistic and perfect competition markets
A: The number of firms in a market, the similarity of the products they sell, and the ease of entering…
Q: The diagram below shows demand and supply curve for Kimchi. The government imposes per-unit of tax…
A: The initial demand curve is D0 and the supply curve is S0 So the initial equilibrium occurs at the…
Q: What has been the major role(s) played by professional accounting bodies in the development of…
A: A professional accounting body refers to an association of accountants working in a particular…
Q: Apparently, Keynes assumed stable prices regardless of the level of government money creation. Was…
A: When talking about Keynesian economics, it can be said that this theory is primarily applicable…
Q: 1 The government decreases taxes by $300 million. Given that MPC = 0.9, how much will AD increase or…
A: In financial aspects, the negligible penchant to consume (MPC) is characterized as the extent of a…
Q: Because the minimum wage is not indexed to inflation, when there is inflation thenominal minimum…
A: Introduction The minimum wage is the amount that an employer is allowed to pay for their work.…
Q: Use the IS-LM model to illustrate graphically the final impact of the reduction in government…
A: Goods market equilibrium is shown by IS curve where LM curve shows money market equilibrium . When…
Q: If the foreign interest rate is 5%, the risk premium on domestic assets, ρ, is -7%, and the expected…
A: In the economy the theory of interest parity tells in general that relating to which interest rate…
Q: Which of the following would be a reason why incumbents may have an absolute cost advantage over…
A: Adam Smith propounded the hypothesis of outright expense advantage as the premise of unfamiliar…
Q: Q)A car manufacturer in Vancouver makes $8700 worth of cars this year, using $100 of engines…
A: Here, it is given that the overall production of car in Vancouver is worth of $8700. At the same…
Q: You've estimated the market demand curve for the spice market as P=184 - 2Q. What is elasticity of…
A: Elasticity of demand depicts how much consumer responds with the change in the price level.
Q: Explore the role of demand curves and the price elasticity of demand.
A: Elasticity of demand is the responsiveness of quantity demanded due to change in price or other…
Q: What is meant by form utility?
A: Utility is an economic term which refers to satisfaction.
Q: - A monopolist has variable costs of VC = q² and faces a demand curve of P = 24- q, where P is price…
A: Price discrimination means charging different price of same goods from different consumer. There…
Q: 'Dollars per unit $40 36 32 28 ,24 20 16 12 II 8- 4 I NAT MC ATC D = MR = AR ZZA I I I a 0 100 150…
A: In simple words we can say that the optimal quantity is the exact amount of the certain inventory…
Q: 3.An industrial firm is considering purchasing several programmable controllers and automating the…
A: The present worth method is very well known in the industry since every single future expense and…
Q: In considering the merits of lengthening the duration of unemployment benefits one should consider?…
A: Unemployment benefit programmes exist in every industrialized economy to safeguard employees from…
Q: Is this statement true or false? Used goods are computed as part of CPI but not GDP. True False
A: Actually Used goods are said to be those goods or the property which is gradually offered for sale…
Q: Assume that in the competitive market for pizzas, the demand function is linear. Suppose you know…
A: Equilibrium occurs at the intersection point of the demand and supply curve. Consumer surplus is…
Q: ou have worked in the industry for a decade, and you are now fed up with the boring work environment…
A: Here, we aim to become entrepreneurs, which refers to generating fresh ideas and turning them into a…
Q: 13 Using the demand and supply curves for bonds, explain the effect of the following on the…
A: All other things being equal, the bond demand curve is the connection between the price and the…
Q: Suppose an economy is in a deep recession with high unemployment and low output. b. If the central…
A: As the quantity of jobless laborers ascends while interest and result decline further subsequently,…
Q: what microenvironmental factors have affected target’s performance over the past few year
A: The following are the aspects that have influenced Target's success throughout the last several…
Q: plant to provide the company’s present needs can be constructed for P2,800,000 with annual operating…
A: Answer is given below
Q: 140 $336.00 175 $367.50 210 $378.00 245 $367.50 280 $336.00 315 $283.50 350 $210.00 385 $115.50 0…
A: A monopoly is a firm who is the one merchant of its item, and where there are no nearby substitutes.…
Q: How do you get MSC=4 in step 2?
A: Marginal social cost refers to the cost of producing additional units to the producer as well as to…
Q: Q)If we assume a constant velocity of money, use the Quantity Theory of Money equation (Inflation…
A: Introduction Money supply is the primary predictor of nominal GDP, according to the quantity theory…
Q: Using the cash flow shown below decide which alternative is the most economical using (a) Worth…
A: To find the annual worth and present worth of the alternatives we firstly derive present worth using…
Q: Question 10 The producer’s share of a tax will be larger: A) the greater the elasticity of…
A: Individuals must pay taxes to the government since they are a legal requirement. Taxes and…
Q: The average labor cost per unit for the first batch produced by a new process is P120. The…
A: As people gain experience, the learning curve represents the increased rate at which they complete…
Q: If $5000 is deposited into a bank with a reserve ratio of 5%: 1. How much will the total money…
A: New money in simple words we can say that it is that certain amount of the money which is usually…
Q: Suppose that the price index of 150 for quantity demanded of US Real GDP is 10.0 trillion worth of…
A: A standardized normal of cost family members for a given class of labor and products in a given…
Q: If there is a change in expected inflation and the natural unemployment it affect the shortrun and…
A: The Philips curve states the inverse relationship between the unemployment rates and the inflation…
Q: Microeconomics Wilfred’s expected utility function is px1^0.5+(1−p)x2^0.5, where p is the…
A: "In micro-economics, the certainty equivalent is represented as CE and it is a guaranteed return…
Q: How can you use surveys, experiments and observational studies to make inferences about a…
A: Introduction An experiment intends to build a cause-and-effect link between variables, whereas a…
Q: What does Gross Domestic Product mean? Why do we need to use market value GDP? What for do we use…
A: The term GDP means gross domestic product, which the market value of all goods and services produced…
Q: While firms in perfect competition maximize profit by producing at a quantity where the marginal…
A: Marginal revenue (MR) is the expansion in revenue that outcomes from the offer of one extra unit of…
Q: A four-year project has an initial cost of $20 000, net annual cash inflows of $10 000, and a…
A: Answer is given below
Q: New firms likely to enter an industry when O a. the profit earned by the firm is likely to be high.…
A: Whereas in monopolistically competitive market, the sellers sell differentiated produces which are…
Q: BPO Services is in the business of digitizing information from forms that are filled out by hand. In…
A: Below is the calculation of the expected cost of digitizing the form: Expected cost of digitizing…
Q: Suppose that the typical consumer’s consumption basket changes in 2020, so that he consumes 50g of…
A: The Consumer Price Index measures the change in prices paid by consumers for a predetermined market…
Question 1
(a) Consider an AD-AS model with Static Expectations. Show how changes in
(b) Consider an AD-AS model with Rational Expectations. Show how changes in the unanticipated component of monetary policy generate short-run movements in output.
(c) Explain how overlapping wage contracts generate persistence in output when there are monetary policy shocks.
Step by step
Solved in 2 steps with 1 images
- Question Two Policy makers can respond to shocks in two possible ways i.e. no policy response and policy stabilisation of economic activity and inflation. Use the AS- AD framework to demonstrate how aggregate output and inflation would perform following an aggregate demand shock accompanied by monetary policy stabilisation measures Show how the outputs above would differ in case of a permanent shock on supply using the AD-AS framework. Discuss the adage that inflation is always and everywhere a monetary phenomenon. What are some of the practical limitations of this assertionQuestion 1 a) In light of the New Keynesian model, answer each of the following questions about the Central Bank’s adjustment of interest rate in response to each of the following shocks. Note that in each case, the Central Bank wants the output gap to be zero. (i) There is an increase in demand for money. (ii) There is a fall in current total factor productivity due to the pandemic. (iii) There is an expected increase in future total factor productivity due to the discovery of new technologies. b) In the New Keynesian model, assume that the economy is in a liquidity trap. Show that the Central Bank could somehow convince the public of more expected inflation in the future. Use an appropriate set of diagrams to explain your answers.The Reserve Bank of Australia provided conventional and unconventional monetary policy stimulus. a) Describe the key elements of the monetary policy stimulus. b) Explain how these policies have been helping the economy using the AS-AD model. c) What are the likely medium-run effects of this pandemic on the Australia potential output? Explain your reasons.
- If most shocks to the economy are ________ shocks, then ________. A) aggregate demand; inflation stabilization policy will also stabilize activity in the short-run B) permanent aggregate supply; inflation stabilization policy will also stabilize activity in the short-run C) temporary aggregate supply; inflation stabilization policy has no impact on economic activity in the long-run D) all of the above E) none of the aboveSubject : PRINCIPLES OF MACROECONOMICS Q1. Explain what are the lags in macroeconomic policies. Do these lags have more effect on monetary policy or fiscal policy and why?a) Consider an AD-AS model with Static Expectations. Show how changes in monetary policy generate short-run movements in output. (b) Consider an AD-AS model with Rational Expectations. Show how changes in the unanticipated component of monetary policy generate short-run movements in output. (c) Explain how overlapping wage contracts generate persistence in output when there are monetary policy shocks.
- Zambia like many countries in the sub-Saharan region have run substantial fiscal deficits over the last decade while at the same time their monetary authorities have allowed money supply to grow excessively thereby fueling inflationary pressure (Zambia’s inflation reached 22.5% in mid-2021 and has remained above the 6-8% target). Zambia like most nations on the continent have turned to the IMF seeking bailout packages to avoid economic collapse. As part of the IMF bailout packages, the Zambian ministry of Finance is required to narrow the fiscal deficit while the central bank is required to implement measures to bring inflation back into the target band of 6-8%. As an economist hired by his Excellence president Hakainde Hichilema, using appropriate macroeconomic models explain the short run impact of the IMF prescription on economic activity, price level, interest rates, exchange, net exports.QUESTION 6 06. Which of the following statements about Keynesian policy are TRUE? Multiple answers a) Keynesian policy is most effective in the flat Keynesian (or Depression) range of the Short-Rum Aggregate Supply (AS) curve, where increases in Aggregate Demand are not likely to cause products price inflation. b) Keynesian policy is totally ineffective in the vertical Classical (past-full employment) range of the Short-Run Aggregate Supply (AS) curve, where an increase in Aggregate Demand will be completely dissipated by products price inflation. c) In the Intermediate range of the Short-Run Aggregate Supply (AS) curve, the effectiveness of Keynesian policy is partially dissipated by products price inflation. d) The Short-Run Aggregate Supply (AS) curve may will be vertical when the economy is trying to produce beyond full employment. But a vertical AS curve can also result from resource suppliers acting on inflationary expectations. This too will…Suppose the Central bank announces today a change in monetary policy: it is increasing target inflation from 2% to 3%. Using the 3-equation model under adaptive expectations, explain how the economy adjusts to the change in monetary policy. (you need to use the graph, and explain in detail how the economy reacts to this change).
- part-c: illustrate the impact of an expansionary monetary policy on the inflation rate and the price level. Also do explain how the transition process works from the initial equilibrium to the final equilibrium. part-d: What is meant by the phrase “Money is neutral in the long run”? (in other words, what is monetary neutrality?). Explain by using the quantity equation part-e: What is the Fisher equation? What relationship does it represent?true or false Suppose that the central bank lost credibility in the sense that people no longer believe its inflation target (that is, inflation expectations are not `anchored’). In this case, both short-run output and long-run output do not increase in response to a permanently higher inflation target.Question Two As an investment advisor, you have been requested to advise a client on whether he should invest his ten million dollars in Zambia or in South Africa. What key theory would you apply to advise the client on the short term and medium term implications of investing locally and abroad? The Government of Zambia has decided to pursue a dual mandate of price stability and economic growth in the conduct of monetary policy. Advise on the possibility of the country achieving both price stability and economic activity stability in the case of a temporary supply shock. Ensure to demonstrate this with the aid of the Aggregate Demand and Aggregate supply framework.
