Suppose the government increases education spending by $40 billion. If the marginal propensity to consume is 0.75, how much will total spending increase? Instructions: Enter your response as a whole number. $ billion

Q: Explain what is the bond market indicating the state of the economy if the yield curve is positive.…

A: A graph that displays the yields of bonds with various maturities is called a yield curve. It serves…

Q: Suppose that a certain factory output is given by the Cobb-Douglas production function Q(K, L) =…

A: Production function: Q(K,L)=60K1/3L2/3 Price of Labor = $100 Price of capital = $200 Production…

Q: quantity of machines 100 90 80 70 60 50 40 30 20 10 O $3450 (10,84) O $6000 O $3000 O $4250 10…

A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…

Q: State tax rates can be progressive but not flat.   True or false

A: Tax in economics is a compulsory financial charge levied by a government on individuals, businesses,…

Q: You have already saved $55. You earn $9 per hour at your job. You are saving for a bicycle that…

A: Given:  Cost of bicycle = $199  Total saved money = $55 Remaining money required to buy the bicycle…

Q: According to the “wealth effect”, when the price level increases people feel less well off, and they…

A: Wealth is a collection of valuable economic resources that can be computed in terms of either real…

Q: When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's…

A: Economies of scale is when there is increasing returns to scale.  Diseconomies of scale is when…

Q: Under monopsony, wages are determined by: Demand curve Marginal Labour Cost…

A: A market structure known as a monopsony occurs when there is more than one seller than there are…

Q: Government sets an emissions tax rate of $50 per unit. Compute this polluter's compliance cost.…

A: Compliance costs are payments involved with following the laws of a tax system, in addition to any…

Q: You are given the following data concerning Kadwan, a country located in the mountains. •…

A: Goods market is at equilibrium where aggregate demand and aggregate supply are equal  . AD or = Y .…

Q: Market demand is given by P = 28 - ½ Q. There is a single incumbent firm with constant MC = AC = 5,…

A: A market is any place where 2 or more parties can meet to involve in an economic transaction—even…

Q: 3. Suppose the monetary policy curve is given by r = 1.5 +0.75 , and the IS curve is given by Y = 13…

A: Aggregate demand refers to the total level of demand for goods and services in an economy over a…

Q: The production function of a firm is f(x, y) = min{x, y}. This is a constant returns to scale…

A: The constant return to scale states that increasing all inputs (i.e., K and L) by a certain…

Q: Assume the demand for real money balances is given by Ma/P = Y/6 - 150i. price level =100 a) Find…

A: Here,  Real money balances are given by Md / P = Y/6 - 150i Where Md is money demand, P is price…

Q: Equal end of year payments of $263.80 each are being made on a $1,000 loan at 15% per year…

A: Given: Yearly payments (PMT) = $263.80 Loan amount (PV) = $1000 Number of payments = ? Interest rate…

Q: A mechanical engineer designs and sells equipment that automates manual labor processes. He is…

A: To conduct a replacement analysis, we need to compare the costs and benefits of keeping the existing…

Q: How would you calculate GDP using the aggregate spending approach? a. By adding up wages, interest,…

A: Gross domestic product (GDP) is a measure of the total value of all final goods and services…

Q: MC. A consumer buys Goods A and Z, as in the diagram below. Which of the following would be…

A: Indifference curve  refers to the curve that connects points on a graph representing different…

Q: QUESTION 7 12. Refer to Figure 9.5. Suppose the economy is a point B. A large increase: AS AS…

A: The AD-AS model combines and draws together aggregated demand and supply curves to accurately…

Q: A person buys a piece of lot for Php 107203 down payment and 10 deferred semi-annual payments of P…

A: Present value in economics is the current value of a future cash flow or series of cash flows. It is…

Q: 5. You are the manager of a firm that sells a product to two groups of consumers in different parts…

A: there are two types of groups with different price elasticities as -3 of group 1 and -6 of group 2.…

Q: What type of ownership is created  when a firm buys another outright

A: A firm seeks to expands its business by buying another firm outright. Such buying leads to the…

Q: The table shows the approximate increase in sales that an additional $100 spent on advertising, at…

A: Given information: x R 25 4 50 59 75 94 100 107 125 104 150 78 175 33

Q: 2. The demand curve facing a perfectly competitive firm Talero is one of more than a hundred…

A: A perfectly competitive firm is one of many firms producing identical goods. This makes the firms…

Q: Which of the following statements is correct? Multiple Choice   If supply increases and demand…

A: The demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.…

Q: Jean deposited P2,000, P2,500 and P3,000 at the end of the 2nd year, 3rd year and 4th year,…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: investigate real and current issues within the field of macroeconomics relating about Gross Domestic…

A: Macroeconomics is a field of economics that deals with the behavior of the economy as a whole,…

Q: Give a brief overview of the economy of ghana.

A: The system or framework by which a society or a nation creates, distributes, and consumes products…

Q: Throughout Canada’s history there have been many Oligopoly and Monopoly players – your assignment is…

A: Oligopoly is a term used to describe a market structure where a small number of dominant enterprises…

Q: suppose that you deposit 8000 in your bank and the required reserve ration is 15 percent the maximum…

A: You deposit 8000 in your bank account.  The required reserve ratio is 15 percent.

Q: 2. A retirement fund earns 6% interest, compounded quarterly. If $1,000,000 is desired to be in the…

A: Present value is the value of investment in today's dollar  Future value is the value of investment…

Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 6 years…

A: Given: Interest rate = 8% compounded bimonthly Quarterly payments @ $4,500 each quarter for 6 years…

Q: 19. How much money should be invested monthly at 6% per year, compounded monthly, in order to have…

A: Compounding is the process of earning returns on an original investment by reinvesting those returns…

Q: How might monetary policy affect the degree of crowding out resulting from fiscal policy?

A: Aggregate Demand: The aggregate demand is a sum of private investment demand, government…

Q: recent government study reported that a college degree is worth an extra Php 33753 per quarter…

A: Future worth is the value of the investment at the end of the fixed time. Present worth is the value…

Q: A price index is Multiple Choice the cost of a market basket of goods and services in a base period…

A: Price is the amount of money necessary to purchase a specific good. It entails the idea that…

Q: An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I…

A: Present value is a concept used to determine the value today of a future sum of money, based on the…

Q: ___ emphasizes economies of scale and decreases risk.

A: Economies of scale are the cost advantages that a company can obtain by expanding its activities. A…

Q: Kevin deposited P2,000, P2,500 and P3,000 at the end of the 2nd year, 3rd year and 4th year,…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: In the short run, the marginal cost of the first unit of output is $25, the marginal cost of…

A: MC is the extra cost added to the production of an extra unit of a commodity.  There are two types…

Q: There is monetary equilibrium in the economy. The total currency in the economy is $6 million, of…

A: The total currency in the economy is $6 million,  public holds $4 million. The commercial banks’…

Q: a.  What are the short-run equilibrium real GDP and price level in 2019? b.  What is the long-run…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: Question 1: Explain, with the aid of a diagram, how the real income determined in the goods market…

A: IS-LM model is widely used to denote the simultaneous equilibrium in product and money markets.…

Q: Firm 1 and Firm 2 would charge a price equal to A and supply half the market.

A:

Q: Are there tools which could be utilized by the governments to improve both climate change and…

A: Government intervention in economic growth refers to the various policies and measures that…

Q: Which of the following constitutes a mixed strategy Nash equilibrium of the Odds and Evens game?…

A: Nash equilibrium (NE) is a situation in a game where each player chooses their best strategy in…

Q: Using  a Supply-Demand diagram, explain how each of the following events will affect the market of…

A: A demand curve in economics is a graphical representation of the relationship between the price of a…

Q: (Figure: Big Tree Organic Farms in the Short Run) Use Figure: Big Tree Organic Farms in the Short…

A: Perfect competition is a place where there are various purchasers and sellers, and all of them begin…

Q: Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion,…

A: The total amount spent by businesses and the government on consumption, investments, and other…

Q: Price and cost $40.50 36.00 30.00 22.00 20.00 0 MC 130 180 240 ATC AVC MR Quantity

A: One of the characteristics of a firm operating in a perfectly competitive market is that the firm…