ssume the following information for an imaginary, closed economy. Consumption = $1,000; investment = $300; Net taxes = $230 %3D %3D rivate saving $200 %3D his economy's government is running a budget surplus of $100. budget surplus of $30.
Q: 16. Suppose country A has abundant labor and scarce capital. Product L requires labor intensive…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 42. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Quarterly rate = 9 % / 4 = 2.25 % Annual effective…
Q: Prime Interest Rate Rises Business Investment Falls M1 Rises at Faster Rate M1 Rises More Slowly GDP…
A: Sell Government Bonds then When the government sells bonds, then it is the contraction policy where…
Q: Alter the Solow growth model so that the pro- duction technology is given by Y = zK, where Y is…
A: Given, Y=zK Where, Y=OutputK=CapitalZ=Factor productivityS=Saving rate
Q: Question 27 Calculate the Required Reserves given the following information. rrr .09 %3! Total…
A: Require reserves are the reserves that commercial banks hold as per the requirement of central bank.
Q: * Mind Tap - Cengage Learning EIN EIN G Google Account…
A: The correct answer is given in the second step.
Q: 23. When one country joins a free trade area with a common external tariff, it causes: O a. Trade…
A: The correct answer is given in the second step.
Q: 17. When a large country imposes an import tariff on good X O a. Domestic production of good X…
A: When quantity demanded exceeds quantity supplied the country will import the good because it has the…
Q: Draw the two graphs & explain the market conditions at $50, $60 in the short run & the return to $50…
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: Sinking Fund is established in which funds will accumulate for replacement. TRUE OR FALSE
A: In business economics, depreciation is considered a fixed cost that a business has to incur.
Q: According to neoclassical economists, a graph of aggregate supply in long run appears: A) Upward…
A: Aggregate supply curve shows relationship between price and quantity supplied in the economy.
Q: 21. If output is above the full employment level, wages will (rise, fall) and the aggregate supply…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and…
A: Here is a wide range of shows that are intended to match deals and costs to the period in which they…
Q: Elon Musk's The Boring Company wants to invest in a subway to be constructed in Metro Manila to…
A: It is given that: MARR = 10%
Q: Q.5 Given the demand functions, (i) Q = 150 − 0.5P, (ii) P = 80 − 2Q, (iii) P = 45…
A: We have Q=150-0.5P ... (1) “Since you have posted a question with multiple sub-parts, we will…
Q: 2 4 6. 7 8. 1000 1200 1400 1800 2000 3.
A: Given timeframe = 8 years From end of year 1 to year 8 , the value of cashflow constantly increases…
Q: 1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I= 300…
A: Disclaimer: As per Bartleby's policy, I am providing you with the answers to the first three…
Q: Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago.…
A: EUAC or, Equivalent Uniform Annual Cost can be calculated by:EUAC = P(A/P, i %, n) - S(A/F, i %, n)…
Q: new generator has just been installed. It is expected that there will be no maintenance charges…
A: Solution given below,
Q: if supply decreases by 30%, would the price increases by the same amount? if not, why
A: A decrease in supply will make the harmony price rise; the amount requested will decrease. To figure…
Q: In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is…
A: We have given two cash flows, the second cash flow is having uniform gradient series from the end…
Q: A vertical aggregate supply graph indicates that aggregate demand has no effect on: A) Prices B)…
A: Aggregate supply curve shows relationship between price and quantity of output supplied.
Q: The distribution of income has become more unequal in developed countries because? Select one:…
A: The distribution of income has become more unequal in developed countries because trade has reduced…
Q: Which of the following is true of effective employee evaluation and feedback? O It should be…
A: When we are considering the evaluation of employees then it is very necessary to evaluate the…
Q: What does it mean by "Transportation" when pertaining to the North American Free Trade Area?
A: There are no import duties or restrictions on items from one nation entering another in a free trade…
Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…
A: The total cost of the generator = P120000 + P10000 = P130 000 Salvage value = 8000 Life = 15 years…
Q: ELASTICITY -What type of elasticity occurs and what is the financial result if: • The elasticity is…
A: When the value of elasticity is less than 1, elasticity is said to be inelastic.
Q: Is the following statement true or false? Explain. A more elastic demand curve yields a greater…
A: The measure that depicts the percentage change in quantity demanded of a product with respect to the…
Q: The firm's production function is given as: Q (L,K) = 2L + 30K. The costs of Labor (L) and Capital…
A: We have Q(L, K)=2L+30K ... (1) w=$20 and r=$2 Desired output=1000
Q: Problem 4 Consider a two-stage game where two players, Ann and Beth, must first decide on a game to…
A:
Q: What does it mean by "Institution-based considerations" when pertaining to strategizing with…
A: Corporate social responsibility include all the business ethics that should be followed by the…
Q: 20. International trade and domestic trade differ because of: Different government policies b. Trade…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose market demand and supply are given by Qd=100-2P and Qs=5+3P. If a price ceiling of $15 is…
A: Given: Qd=100-2P Qs=5+3P
Q: QUESTION 4 A monopolist has the following Demand and Marginal Revenue equations: (Demand) P = 500 -…
A: The lowest price (and maximum quantity) that this firm will ever set would be such a price where…
Q: Hong Kong’s prosperity has become increasingly dependent upon its capacity to play that role…
A: Hong Kong, a previous British settlement that got back to Chinese rule in 1997, is administered…
Q: An amortization of a debt is in a form of a gradient series of P20,000 on the first year, P19,500 on…
A: We have given Year cash flow ( end of the year) 1 20,000 2 19500 3 19000 4 18500 We…
Q: total of Php 5,000 is invested at a simple interest rate of 6% for 4 months. How much interest is…
A:
Q: 3 . An economy experiences an adverse supply shock. a) Draw an AD-AS diagram to illustrate the…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Thich of the following is an example of a negative externality? the benefit you receive when your…
A: Externality refers to cost or benefit that tends to affect people who is not the part of production…
Q: A concrete pavement on a street would cost 10,000 and would last for 5 years with negligible…
A: Given: A street would cost = $10,000 Years = 5 At the end of each 5 years = $1,000 would be spent…
Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…
A: Present value for the future costs and benefits can be calculated by discounting the costs and…
Q: A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and…
A: Given:- Paid to manufacturer=Ph 250000 freight and insurance=Php 18000 Custom, broker fee=Php 8500…
Q: In the Real Business Cycle model, what is the effective investment and the equilibrium investment?
A: Effective investment refers to the net addition to the capital stock of economy which is measured by…
Q: 37. Calculate the payment (P) 10 years from now that is equivalent to a payment of P2000 five years…
A: Given payment in 5 years from now = 2000 P Interest rate = 12 % compounded quarterly Quarterly rate…
Q: The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to…
A: production function, in financial matters, is a condition that communicates the connection between…
Q: 1. In the Malthusian model, suppose that the quantity of land increases. Using diagrams, determine…
A: A Malthusian growth model, often known as a basic exponential growth model, is simply exponential…
Q: 11 The average cost (SR and LR) of Q = 50,000 is $10. / 5o,000,10) Ac SRE LR (s0,000, 1a) %3D With…
A: Given Diagram
Q: 3. The government is considering raising the tax rate on labor income. Explain the supply-side…
A: a. The labor supply will dwindle. The supply of labor curve shifts leftward from LS0 to LS1 as seen…
Q: Question 1: What circumstances are like to make the use of pay-for-performance appropriate or…
A: The Pay for performance model, often known as performance-related remuneration, refers to employee…
Q: 6A business is considering hiring a legal firm. The marginal benefit of the legal services would be…
A: The costs are given as MC= q Fixed costs = $5 for monitoring and $15 for auditing. The total cost =…
Step by step
Solved in 2 steps with 1 images
- The program has provoked a lot of political discussions. Which of the following statementsare correct (assuming a closed economy)? 1. The higher the marginal propensity to consume, the lower will be investment multiplier.2. A reduction of the tax rate lowers the fiscal policy multiplier.3. The higher the marginal propensity to consume, the more consumption can be induced bymore government spending, and this will lead to a higher fiscal policy multiplier.4. When fiscal policy is not able to compensate fully for other demand reductions, anexpansionary monetary policy can be helpful to overcome a recession more quickly.5. An expansionary monetary policy by the ECB in combination with a fiscal expansion willalways lead to inflation.6. Only a consequent fiscal consolidation will help the economy out of a recession.7. In the liquidity trap there is no crowding-out effect to be expected.8. It is best to conduct fiscal consolidation when the economy is in a boom.assume the following economy autonomous consumption =£3m marginal propensity to consume= 0.8 business investment = 52 government spending =£127m income tax rate = 40% A. Find equilibrium size of income Y. B. Identify whether the government runs a budget deficit or a budget surplusSuppose the following equations represents a closed economy: Y= C + I + G Y = 4000 G = 500 T = 500 C = 500 + 0.7 (Y – T) I = 1000 – 40r In this economy, compute the value of consumption (C), private saving, public saving, and national saving. Also, find the equilibrium interest rate (r). Now suppose that government spending (G) rises (expansionary fiscal policy) to 300. Compute private saving, public saving, and national saving. Also, find the new equilibrium interest rate (r). In part (b), due to expansionary fiscal policy (increase in government spending), which of the two other components of aggregate demand changes, C or I? Why? (Hint: Note the real interest rate)
- Assume an economy in which:(i) there are no exports and no imports,(ii) investors always want to spend $200 billion, or I = 200,(iii) government spends $500 billion and tax revenue is $200 billion,(iv) consumption is a linear function of disposable income, C=100+0.8Yd Assume instead that the government wishes to maintain taxes at $200 billion(T=200), but wants to achieve an equilibrium level of national income of $4200 billion(Y=4200) by increasing government spending. To achieve this result, by how much mustgovernment spending increase?a) Given the following values of consumption, investment, and government purchases (all in (in millions of $) at three point of Real GDP, calculate (in millions of $) and plot the Total Expenditures curve. Real GDP Consumption Investment Government Purchases Total Expenditure Q1 600 50 200 Q2 750 80 400 Q3 1000 100 600 b) Assume the economy is in recessionary gap. On the same diagram you in part a), show this case. If the government intervenes using fiscal policy, what sort of policy would they use? Which curve would they shift and why? Draw this shift on the same diagram.Data is provided below for a small closed economy. Output/Income = 10,000 Consumption = 600 + 0.75(Y - T) Investment = 400 Taxes = 2,000 Government expenditure = 2,000 Assuming that fiscal policy has a multiplier effect and that investment and taxes remain unchanged, what will happen to output if government expenditure decreased by 500? Select one: It would increase by 500 It would decrease by 667 It would decrease by 500 It would increase by 2,000 It would decrease by 2,000 It would increase by 667
- The following transactions took place in Ecoland in 2018: Trillions of 2014 dollars Government purchases 400 Taxes 360 Firms’ profits 300 Investment 400 Consumption expenditure 1000 Wages paid to labor 1400 Exports 300 Government transfer payments 150 Imports 350 (a). Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit? (d) If Ecoland’s nominal GDP in 2018 is $1900 trillion, how much inflation has Ecoland experienced since 2014?The following values represent country A C=$160, S=$40, T=$0, Y=$200 and I=$30, T=0 and G=0 The households consume 80 percent of their income, and save 20 %. MPC = 0.8 and MPS = 0.2. That is, C = 0.8Yd and S = 0.2Yd. a) Is the economy of country A in equilibrium? What is the equilibrium level of income? b) If the full employment level of Y is supposed to be $250, what fiscal policy should the government follow?Consider a closed economy. Household saving is $300, business saving is $400, government purchases are $1000, government transfers and interest payments are $500, government tax collections are $1300, and GDP is $5000. What is the fiscal deficit?Group of answer choices $1000 $200 $800 $0
- Mexico's real GDP fell from 4.5 trillion pesos to 3.8 trillion pesos over the first part of 2020. In that same time, its consumer spending fell from 3.1 trillion pesos to 2.5 trillion pesos. Assume that real GDP represents disposable income. Using these values, what is the size of the government spending multiplier?Mexico's real GDP fell from 4.5 trillion pesos to 3.8 trillion pesos over the first part of 2020. In that same time, its consumer spending fell from 3.1 trillion pesos to 2.5 trillion pesos. Assume that real GDP represents disposable income. Using these values, what is the size of the tax cut multiplier? (Round answers to one decimal place.Consider an economy where the marginal propensity to save is 0.15; the marginal propensity to import is 0.05 and the marginal propensity to tax is 0.2. If there is an increase in government spending of $150 million, by how much would national income increase? (a) National income would increase by $350 million (b) National income would increase by $375 million (c) National income would increase by $210 million (d) National income would increase by $240 million