Use the following table, which lists output quantities and prices for the only three goods in the economy, to answ 2007. Hot Dogs Baseballs Bottles of Beer Year Price Quantity Price Quantity Price Quantity 2005 $2.00 100 $2.50 50 $1.00 100 2006 4.00 100 5.00 100 2.00 150 2007 5.00 100 5.00 100 2.00 200 2008 8.00 150 8.00 200 4.00 200 2009 10.00 200 10.00 200 4.00 250 The Consumer Price Index for the year 2009 is
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- Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure ALL questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumersSuppose an economy produces only 2 products that will also be used for directconsumption, as per the article at the end of the exam: chicken wings and donuts. Inthe second quarter of 2021 (the base period), 180,000 pounds of chicken wings wereproduced, at a value of $3.50 per pound, while in the second quarter of 2022,production of chicken wings increased to 200,000 pounds, at a value of $3.75 perpound. In the second quarter of 2021 (the base period), 85,000 donuts were producedat a value of $0.85 per donut, while in the second quarter of 2022, donut productionincreased to 100,000 donuts, each at a value of $0.95 per donut. The population inthis economy is 1000 individuals in 2022, while the number of hours worked in 2022is 5000. Also, the quantities that were produced in 2021 represent the quantities thatwere purchased by the typical household, meaning that everything that was producedwas sold.d. Solve for the amount of labor productivity in the second quarter of 2022.e. Solve for the…The following evens have occurred at times in the history of the U.S. a. The world economy goes into an expansion b. U.S. businesses expect future profit to rise c. The government increases its expenditure on the goods and services in a time of war or increased international tension. 1. Explain for each event whether it changes SRAS, LRAS, AD or some combination of them 2. Starting from the point of LR equilibrium, use three graphs to show how each event affects the U.S. real GDP and the price level 3. Graphically show the combined effects of these events on the U.S. real GDP and the price level, starting from a position of LR equilibrium
- 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 valueThe following graph shows three total expenditure lines for an economy at three different price levels. AE130 corresponds to the price level of 130; AE110 corresponds to the price level of 110; AE150 corresponds to the price level of 150. The black line (which starts in the bottom left corner) is a 45-degree line illustrating the set of points for which real GDP and total expenditure are equal. 1. What is the level of equilibrium output at a price level of 110 is what? (First picture) 2. Plot aggregate demand curve in second picturePlease give a detailed solution with an explanation to the below images.Please double-check your answer before submitting by double-checking your sources and work.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's prices or the base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's prices or the base year's pricesBlank Answer #5:produced domesticallybought by consumers
- Explain, in detail, how the adjustment to macroeconomic equilibrium occurs when spending is less than production. Be sure to discuss how inventories play a crucial role in the adjustment process. State what happens to GDP and employment during the adjustment process.The table below shows aggregate expenditure in the short-run, answer the following questions in the spaces provided below Aggregate output (Y) C I G Aggregate Expenditure AE 0 20 30 10 100 100 30 10 200 180 30 10 300 260 30 10 400 340 30 10 500 420 30 10 600 500 30 10 700 580 30 10 1 1 Mark What is the value of MPC 2 1 Mark What is the value of MPS 3 1 Mark What is the value of autonomous consumption (Ca) 4 1 Mark Write the consumption function 5 1 Mark What is the amount of equilibrium consumption 6 1 Mark What is the amount of saving when Y = 200 7 1 Mark What is the amount of autonomous expenditure 8 1 Mark What is the amount of equilibrium expenditure 9 1 Mark What is the size of expenditure Multiplier 10 1 Mark What is the value of…Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967
- Given the macro economic data below, draw a graph to illustrate if there is arecessionary gap in the given economy.Real GDP $1000BConsumption (100K is Autonomous) $600BInvestment $100BGovernment Spending $200BExport $50BImport $50BMarginal Propensity to Consume 0.50 AD (Expenditure) 45 degree AD = AS $ 1000B AS (Real GDP) a. Calculate the size of the recessionary gap in the economy. b. What would happen to the recessionary gap if the government cut incometaxes by $50B? c. What would happen to the recessionary gap if the Fed increased discountrates? Explain your answer.Consider the following extract and then answers the questions that follow: How SA's recession is impacting consumer spending Consumers are actively doing pre‐shopping research either through broadsheets or online, and comparing retailers’ offerings to seek out the best value before even leaving the house. Consumers simply no longer purchase certain items, pointing to their extreme need for frugality in current market conditions. Added to this, consumers have also changed the way they use these products in their homes to maximise usage and minimise wastage. This includes the alternative use of products, like using margarine in place of cooking oil and fragranced body lotion instead of perfume. Q1. Discuss the impact of the economy on consumer behaviour.Note: it is important that you consider using examples that is relevant and specific to the scenario provided when responding to this question. Q2. Finding cheaper prices online is one driver for online shopping. Describe any four other…Macroeconomics? How to derive the total expenditure curve?