Respond the following statements by explaining why they are true or false. For each statement, a complete and correct explanation   1. Business cycles are the periodic peaks and troughs of the financial industry and real estate (FIRE) sector of the economy.   2. Consumption of nondurables is more volatile than GDP, that is, it has a higher standard deviation, because people like to take risks, so their consumption in nondurables varies more than their income month-tomonth.  3. Investment is countercyclical because, when GDP increases, consumption increases and investment falls.    4. Unemployment is countercyclical because the unemployment rate is negatively correlated with GDP.

Q: In one day, Dahyun can produce 20 cakes or 40 brownies, and Sana can produce 25 cakes or 125…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Question 5 Refer to the information provided in Figure 4.3 below to answer the question(s) that…

A: In the free market, the equilibrium price and quantity is determined by the forces of demand and…

Q: How about for number 4 and 5?

A: Goods market equilibrium requires:  Y = C (private consumption)+ I (private investment) + G…

Q: Maria Bakery Company is considering two investments, both of which co $8,000. The cash flows are as…

A: The ‘discounted payback period method’ calculate how many years it will take to recover the initial…

Q: Question 5 Refer to the information provided in Figure 4.3 below to answer the question(s) that…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Consider two countries, Acirema and Niatirb, whose currencies are the AC dollar, and the NI dollar,…

A: Given: Year Acirema CPI Niatirb CPI Nominal R(ACD/NID) 2000 100 100 1.2 2001 106 98 1.23…

Q: Question 6 Refer to Scenario 3.3 below to answer the question(s) that follow. SCENARIO 3.3: -Mustard…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Please select all that are true regarding variable costs (VC): Variable costs must be more than…

A: A profit-maximizing firm produces the optimal output at a minimum total cost outlay. The total cost…

Q: Why the government needs to intervene in the markets?

A: The classical economy argues that economy is self sufficient and the forces of demand and supply…

Q: 4. Two Stackelberg-competitors with no costs face the common market demand curve P=30−Q, where Q is…

A: Stackelberg game is also known as leadership model is strategic game in economics in which the…

Q: Figure 7.3.1 The figure shows the market for shirts in Canada, where D is the domestic demand curve…

A: A country will import if, at the world price, the domestic demand is greater than the domestic…

Q: View the data on the trade balance below. Then answer the questions that follow.   Is the United…

A: (1). The United States is currently in a trade deficit situation because the values of trade balance…

Q: The graph below shows the labour market for Lumberland Wage rate (hourly) 16 14 12 10 8 6 9.75 10.00…

A: Labour market : labour market is a market where the firms and households interacts. The firms…

Q: what is the importance of negotiation in business? short answer please

A: In order to address disagreements or problems that affect both parties, two parties engage in…

Q: 1. Let's go back to the game played between Charlotte (automobile driver) and Erica (bicyclist).…

A: The amount of damages to be born by the injured and the injured are decided by using various rules…

Q: Define the term scarcity in context of economics.   Pls explain in detail.

A: A basic economics paradox—the contradiction between limited resources and presumably boundless…

Q: Refer to the diagram to the right. The closed-economy equilibrium price is $14. The world price is…

A: Equilibrium is where demand curve intersects the supply curve.  So,  At equilibrium, quantity…

Q: Another name for the equilibrium exchange rate reported in the currency markets is the spot quote…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first question for you. If…

Q: An open-economy is characterized by the following: C = 750+ 0.8 (Y-T) $$1-1500$$ G = 250 1. 2. T =…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.  So,  AD…

Q: Define externalities. If there is a negative externality at alocal, please propose on how to solve…

A: Because the market does not fully price the external effects of some economic activities,…

Q: MetroKlean LLC, a hazardous waste soil cleaning company, borrowed $2.5 million for 5 years to…

A: At the point when an investment is first made in an asset or an firm, the financial backer initially…

Q: Two prospecting partners, Curtin and Dobbs, find an area containing 40 ounces of gold. For each day…

A: Curtin and Dobbs are two prospecting partners. Both alternatively serve as watchmen at night. Curtin…

Q: In which two markets can you buy stock? Compare and contrast these two markets. What is an IPO?

A: Though a wide range of concepts can be expressed using the word "market," it is most frequently used…

Q: Disposable income is defined as national income - transfers + taxes. national income + transfers +…

A: Disposable income is part of national income after the deduction of net tax. Net tax is a difference…

Q: As the baby boomers retire what happens in the labor market? Multiple Choice

A: A baby boomer is a person who was born during the period of 1946 to 1964. This period has seen a…

Q: Explain the intuition behind why market-based instruments (emissions taxes/tradeable permits) are…

A: For environmental management market based instruments like (emissions taxes/tradable permits)…

Q: 1. (.) Consider the problem max U(x, y) = 100-e-x-e-y subject to px +qy=m (a) Write down the…

A: The consumer maximizes utility function subject to the budget constraint. The following information…

Q: Suppose one person had all the resources in an economy. This is a Pareto efficient outcome. A)…

A: An economic scenario known as Pareto Efficiency is one in which it is difficult to improve one…

Q: Hank is confused as to what banks do. He reads that banks “transform assets,” but he has no idea…

A: Hence asset transformation is a process through which banks transforms bank liabilities (deposits)…

Q: 8. Given the following set of demand and supply functions, find the equilibrium price and…

A: The equilibrium price and quantity could be measured by equating demand and supply equations.

Q: In economics, an index of risk aversion is defined as: I(m) = -U" (m) U'(m) where m measures how…

A: Index of Risk Aversion: I(m) =-U''(m)U'(m) Risk-averse individuals are people who hate risk and want…

Q: c.ass. Sup- 2. Consider the following sequential variant of the public goods game w pose that there…

A: When the game is sequential consisting of two players , then the first player optimizes his utility…

Q: Which of the following is true for this profit-maximizing firm at price P in the graph below?…

A: Profit maximisation is a process that businesses go through to make sure the best levels of output…

Q: Consider a consumer who has a direct utility function given as U(x₁, x2) = (x1+x25)² where ₁ > 0 and…

A: Utility Function: A utility function is the combination of all commodity bundles that gives a…

Q: Seatwork on Trade Policy Given: 1. Y=C+I+G+X-M 2. C=b+cYd (Consumption function) 3. Ts+tY (tax…

A: Equilibrium level of income is the point of level which expresses the situation where aggregate…

Q: The Open-Economy Multiplier

A: Aggregate demand is the sum of consumption, investment, government spending and net export.  So,  AD…

Q: What is the meaning of the business negotiation quotation?

A: Introduction A debate centered on conflict resolution between two or more parties can be described…

Q: Ceteris paribus, how does a recession in the United States affect U.S. net exports?

A: Recession refers to the business cycle during which the prices of the goods and services comes down.…

Q: Question 5 $23) Suppose that two wage regressions are estimated for black and white workers: W₁ =…

A:

Q: What do experts consider the key to securing a long-term business loan?

A: A long-term business loan is kind credit facility that a business can avail in the long term. It can…

Q: Question 6 An increase in demand is shown as O a leftward shift of the demand curve. a movement…

A: Here we have to find an increase in demand is shown as.

Q: Total Cost Analysis The manager of a rival T-shirt stand found that her cost to produce 10 T-shirts…

A: The essence of total cost analysis is to identify all relevant costs over the entire life of a…

Q: A risk neutral insurer offers to insure an individual with a wealth of 25 dollars against a loss of…

A: Initial wealth=25 Loss=21 For A-- Loss probability=0.33 and no loss=0.66 For B --- loss…

Q: A player's payoff can be made up of Only monetary value

A: A game between two players is represented by a payoff matrix.  In a payoff matrix, the row…

Q: question in fewer than 500 words: Please name 3 things about our current economic system you would…

A: The current economic scenario is ridden with a lot of defeciencies such as rising Unemployment,…

Q: Instacart offers consumers a convenient form of home delivery service for groceries. Units of output…

A: Given information: A firm is engaged in the home delivery service for groceries. It uses delivery…

Q: A sum of $3999 is due for payment three years from now. If money is worth 9% compounded…

A: Given  "A sum of $3999 is due for payment three years from now" means the cash flow at year 3 is…

Q: why is inflation higher than money growth in high inflation countries and lower than money growth in…

A: The medium of exchange utilized in sales and purchases of things is money. It is offered in widely…

Q: Consumption is an important element of aggregate demand because it  A) is the most volatile…

A: Aggregate demand basically refers to the total amount of demand for all the finished goods and usual…

Q: 1. In a perfectly competitive firm, the MC curve represents the firm's supply curve.

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…