Suppose the information in the table is for a simple economy that produces and consumes only four goods and services: textbooks, hamburgers, shirts and cotton. Base Year 2011 2011 Quantity Price $50 • Calculate the nominal GDP for 2012. 2012 Product Quantity Textbooks 90 100 100 Hamburgers 75 2 100 120 Shirts 50 30 50 25 65 Cotton 100 0.80 800 0.60 120 Please enter only the numbers (no commas, dollar signs etc.) in the spaces provided. • Calculate the nominal GDP for 2011. • Calculate the nominal GDP for 2013. 2013 Price $60 2 Quantity Price $65 2.25 25 0.70
Q: After government is added to the income-expenditure model, the formula for the aggregate consumption…
A: National income is referred to as the total monetary value of all goods and services that are…
Q: Please explian these concepts of Ricardian Model in your own words (include what formulas/rules…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The demand function at a given market follows: QP (P) = 60-3P The cost of producing the good in that…
A: Given Demand curve: QDP=60-3P ....(1) Supply curve: CQ=2Q ....(2) A monopoly is a…
Q: When long-run average cost is decreasing, it can pay to operat smaller plants at their peak…
A: Average cost, often known as unit cost, in economics is calculated by dividing the total cost (TC)…
Q: Firms using prerequisites (perks ) along with cash compensation for employees is an example of…
A: Economic cost includes both the explicit cost and the opportunity cost; while the accounting cost…
Q: The natural unemployment rate is 5 percent and potential GDP is $10 trillion. If the unemployment…
A: The natural unemployment rate is 5 percent Potential GDP is $10 trillion the unemployment rate is 9…
Q: Does the recognition of depreciation expense affect cash flows? Why or why not?
A: Cash flow represents all the money transactions that occur from the trade cycle for a given period.…
Q: Parliament is interested in financing the cost of their proposed childcare programme by imposing a…
A: The main concern that payroll taxes imposed to pay for childcare programmes will be entirely burden…
Q: The price elasticity of demand of a good depends in part on its relative necessity in comparison to…
A: Among other things, price elasticity depends upon the nature of the good. Nature in this sense…
Q: The AS curve becomes steeper whenever: A. potential output increases. B. the marginal propensity to…
A: An aggregate supply refers to the total supply of items and services that in a national economy a…
Q: Suppose the quantity of root beer demanded decreases from 105,000 litres per week to 95,000 litres…
A: An elasticity of demand will be calculated as the ratio of the percentage change in quantity…
Q: 1.2 Which of the following conditions would not be studied by the macroeconomist? a) The level of…
A: A subfield of economics known as macroeconomics studies how an economy as a whole performs, is…
Q: 2. Whether candidate 1 or candidate 2 is elected depends on the votes of two citizens. The economy…
A: Given information There are 2 candidates: 1 and 2 There are 2 states: A and B In state, A player 1…
Q: 1.1. The following mathematical equations reflect the performance of the economy and inventory…
A: The Keynesian model of national income is the sum of the consumption function, investment function,…
Q: Question 1 Which of the following shifts aggregate demand curve rightward? (A) A decrease in wealth.…
A: The total quantity of demand for all finished products and services generated in an economy is…
Q: Three alternative insulations are being considered for installation on a machine part. After the…
A: Given, Three alternatives insulations are being considered for installation on a machine partIf the…
Q: AMH Inc. currently sells 1,148 Class A motor homes, 2,751 Class C motor homes, and 108,438 pop- up…
A: Given information AMH Inc sells Class A motor home=1148 units Class C motor home=2751 units Pop up…
Q: 1.1. The following mathematical equations reflect the performance of the economy and inventory…
A: According to the Keynesian model, the national income is represented as the aggregate demand which…
Q: 2. The demand function for a certain item is given by D(p) = 1000 p³ Find the elasticity of demand…
A: Price elasticity measures the percentage change in quantity demanded due to percentage change in…
Q: A "profit-maximizing" price searcher will want to charge a price that is greater than marginal…
A: A profit-maximizing price searcher firm produces at the intersection of MR and MC to maximize…
Q: What is the cooperative outcome in this table (Oligopolist's Dilemma slide, with typos fixed, choose…
A: Dominant strategy is best course action no matter what types of strategy is followed by the rival…
Q: Anne's utility function is U(x, y) = 2(x+y) - min{x, y}. Given the income M, please derive the…
A:
Q: a company purchases an asset for 20000 and plans to keep it for 10 years. of the salvage value is…
A: The sum of years method utilizes the expected life and adds the digits for every year to give the…
Q: Guelph Inc. would like you to assess the after-tax viability of a new machine using annual worth…
A: The annual worth method or AW method implies that all the incomes along with disbursements, regular…
Q: Study the table below and answer the question that follows. Carpets Fighter aircraft Afghanistan 100…
A: Opportunity cost is the cost of producing one good in terms of other good. Opportunity cost is used…
Q: Distinguish between elasticity of demand and cross elasticity. Under what circumstances, we find…
A: The amount that a good's demand changes as a result of changes in its determinants is measured as…
Q: Refer to Table 1. The equilibrium level of output is ________ billion. Group of answer choices…
A: Equilibrium is where aggregate demand equals output That is AE = Y Now , Aggregate demand/…
Q: Which of the following is NOT a category of fiscal policy? Group of answer choices government…
A: Fiscal policy is the policy under which the government changes the government spending or taxation…
Q: If the MPC is 0.75, the tax multiplier is
A: Tax multiplier means magnitude of change in income when there is change in tax. This means when tax…
Q: Real GDP and the velocity of circulation are constant. What is the change in the price level in…
A: Quantity theory of money shows the relationship between the Money supply , velocity , real GDP and…
Q: Marquesa earns money and can spend money only this year and next year. Her utility is U(c1, c2) =…
A: Utility function shows hou much satisfaction is derived from the consumption of given goods. Law of…
Q: What is the cost borne to society at equilibrium at Point A?
A: In economics, economic equilibrium is a circumstance in which economic forces such as supply and…
Q: the equipment cost 500000 and has a salvage value of 25000 after its 20 years of useful life. using…
A: The double Declining Balance Method is one of the accelerated methods used for the calculation of…
Q: Disposable income Group of answer choices increases when net taxes increase. increases when saving…
A: Disposable income is the income that is available for spending after tax. Disposable income can be…
Q: Mr Phiri has K10,000 in his account. He is considering investing in a project which has 70 %…
A: Given that; Income = K10,000 Probability of earning a profit= 70% Probability of incurring a loss=…
Q: For each set of conditions given, use the aggregate supply – aggregate demand model to indicate what…
A: Aggregate demand represents the total demand in the economy for the finished goods and services that…
Q: Question 5 The government increases its purchases of goods and services. As a result, in the…
A: Equilibrium in the economy occurs at the intersection of aggregate demand (AD) and aggregate supply…
Q: Do you feel the US role as the "guarantor" for the Bretton Woods System was viable? Why or why not?…
A: A payment system based on the dollar was formed at Bretton Woods; this system defined all currencies…
Q: A bank features a savings account that has an annual percentage rate of r = 2.9% with interest…
A: The yearly/ annual rate yield (APY) is the genuine pace of return procured on investment, producing…
Q: O c. Increase
A:
Q: Outline the three monetary policy instruments the fed can implement if its objective is to cool off…
A: Federal reserve has two responsibilities: Achieving full employment and stabilizing price rise. The…
Q: Assume the following information: You have $1,000,000 to invest GBP/USD SPOT rate…
A: * SOLUTION :- Given that, Investment= $1000000 Spot rate=1.2585 GBP/USD 3M FWD rate = 1.2425…
Q: Two firms compete in a single market (duopoly) with demand given by Qp=60-P. The two firms have…
A: Given information: Qd = 60 - P C(q) = 2q In the Bertrand model, firms competes on the basis of…
Q: compute a piece rate for an employee earning $17.75/hour where the standard time per unit is ten…
A: Piece wage rate system is the wage system in which the wage is determined by the no. of units…
Q: 1.12 Study the following diagram and answer the question that follows. Expenditures (billions of…
A: Consumption function is consists of autonomous consumption and consumption dependent on Income. C =…
Q: The Employment Act of 1946 states that the Fed should use monetary policy only to control the rate…
A: The Employment Act of 1946 laid the responsibility of stability of unemployment and inflation in…
Q: Double counting can be avoided when computing GDP by
A: GDP stands for "Gross Domestic Product". GDP is the market value of goods and services produced in…
Q: 5. The demand and supply functions of a computer accessory are D(x) = 4.5 - 2.5x and S(x) 0.0375…
A: Equilibrium is where demand equals supply. Demand curve is the graphical representation of demand…
Q: . what are the strengths and weaknesses of the Caribbean stock exchange?
A: Companies and investors interact on a stock exchange. By offering equity shares for investors to…
Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…
A: Grandson will be receiving an amount of P 10,000 for 5 years starting after the 18th birthday. To…
Step by step
Solved in 2 steps
- Suppose that the consumption basket consists of gasoline, mugs, and movies. In the base month, consumers buy 20 litres of gasoline at $2 per litre, 2 mugs for $13 each, and 4 movie tickets for $7 each. In the next month, the price of gasoline is $2.25 per litre, mugs cost $12.50 each, and the price of a movie ticket is $7.50. The change in the consumer price level from the first to the second month is ______. a. –6%b. 6.4%c. 94%d. 1.1%Graph and label as either direct or indirect the relationships you would expect to find between (a) the number of inches of rainfal per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of an entertainer and the price of her concert tickets.Consider the following data on Prices and Quantities of oranges and VCRs. From a. - k. 3 marks each An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The bose year is 1998. 1998 1999 Oranges Price Quantity Price Quantity VCRs $2 5,000 $3 4,000 V.00 1,000 $300 2,000 a. Calculate the total value of goods and services at current prices in this economy in 1998. b. Calculate the total value of goods and services at current prices in this economy in 1999. c. Calculate the total value of goods and services at constant prices in this economy in 1998 d. Calculate the total value
- Many elderly people in the US receive Social Security payments as their sole source of income. Because of this, there have been attempts to adjust these payments so as to keep up with changing prices (inflation). This process is called “indexing”; this question will lead you through the process. Suppose that in the year 2018, a typical Social Security recipient consumed only Food (F) and Housing (H). The price of housing was $150/unit and the price of food was $50/unit. Denote the quantities of food and housing per month by F and H respectively. This consumer received $1500/month and consumed 5 units of housing and 15 units of food. (a) Write out the consumer’s budget constraint and demonstrate that the bundle chosen falls on that budget constraint. (b) Draw the budget constraint on a graph (Housing on the horizontal axis) with the optimal bundle labeled. Draw the indifference curve through that optimal bundle. Assume preferences are well behaved. Suppose that in 2019, the price of…Mr Adam was purchasing 1 kg daal and 6 kg rice. This week Mr Adam is purchasing 2 kg daal and 5 kg rice. What can you conclude from the given information? Discuss all conclusions in detail.1.Graph and label as either direct or indirect the relationships you would expect to find between (a) the number of inches of rainfall per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of an entertainer and the price of her concert tickets?
- Please help with questions D & E: Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150, $170 Number of houses produced 1,000 Number of pairs of shoes 650,000, 525,000 (a) What is the Consumer Price Index (CPI)? (b) Calculate the CPI for both years. (c) Calculate the rate of inflation for 2001 using the CPI. (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator. Please help with questions D & E only.Please help with questions D & E: Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150, $170 Number of houses produced 1,000 Number of pairs of shoes 650,000, 525,000 (a) What is the Consumer Price Index (CPI)? (b) Calculate the CPI for both years. (c) Calculate the rate of inflation for 2001 using the CPI. (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator.Question 2 Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150 $170 Number of houses produced 1,000 Number of pairs of shoes 650,000 525,000 (a) What is the Consumer Price Index (CPI)? (b) Calculate the CPI for both years. (c) Calculate the rate of inflation for 2001 using the CPI. (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator. solution for D and E
- Question 2 Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150 $170 Number of houses produced 1,000 Number of pairs of shoes 650,000 525,000 (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator.Imagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food and clothing only. The table below shows the hypothetical results.this question is for Macroeconomics but it didn't show any option for Macroeconomics it just show economics. Use the table below to answer the following question. Table 21.3.2 Data from Southton Price (dollars) Price (dollars) Quantity (number) Quantity (number) Item Base Current Base Current Rubber Ducks Beach Towels 1.15 9.10 1.36 10.00 90 15 100 14 1) Refer to Table 21.3.2. From the data in Table 21.3.2. What is Southton's consumer price index for the current year? What is the rate of inflation over the current year? Show your calculations.