Was the growth rate of real GDP higher or lower than the growth rate of nominal GDP? Explain. Using 2015 as the base year, calculate the CPI for each year. Calculate the inflation rate for 2015, 2016 and 2017.

Q: 1. Suppose a person's utility is equal to U = VY and the initial income is $80,000. Medical expenses…

A: U = (Y)1/3  Initial Income = $80,000 Medical expenses = $40,000 Probability of getting sick = 25%

Q: Eddie's Precision Machine Shop is insured for $700,000. The present yearly insurance premium is…

A: The premium based on coverage is the sum that we pay for insurance on the basis of a particular…

Q: 1. What notation do we use for the backwards-induction outcome?

A: Backward induction is the process of figuring out the best course of action by thinking backwards in…

Q: The alternative policy is to introduce a tax of $3,000 on the sale of new cars. Under this policy,…

A: Here we are given the market of new cars. And here we have the demand and the supply curve. The…

Q: Draw an isoquant representing Y = 140 for each of the following ca and K denotes units of capital.…

A: Production function represents the relationship between the output and inputs.

Q: suppose there are three identical vases available to be purchased.  Buyer 1 is willing to pay $30…

A: Here, vases are identical but the value of these vases are different withtbr differences in the…

Q: u are the manager of a monopolistically competitive firm, and your demand and cost. ctions are…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts question…

Q: Problem 2: Average total cost, from “Principles of Economics” by N. Gregory Mankiw You are the chief…

A: Average total cost alludes to the cost per unit of output. It includes both fixed and variable…

Q: What will occur in the market when there is an excess quantity demanded of a product at the current…

A: The Equilibrium is set up where the demand and supply are equal. The mismatch between the demand and…

Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $900,…

A: The investment's annual income is divided by the stock's market price to calculate the current…

Q: An economy's consumption function is depicted in the table below. Disposable Income (Y) ($ billions)…

A: total expenditure is the sum of consumption plus investment

Q: brownie has $100 that he can spend on milk and gas. A gallon of milk costs $5. However, government…

A: The indifference curve for linear preferences is straight line sloping to downward to right. The…

Q: 1. Calculate the total value of goods and services at current prices in this economy each  year?…

A: 1. Total value of goods and services at current prices in this economy: (Same year price and…

Q: In the quantity equation, MV = PY, if velocity is constant, real GDP is growing at 2% per year, and…

A: The quantity theory of money:-  MV = PY  M = money supply  V = velocity P = inflation Y = real GDP

Q: write a explanation about UN sustainability goals 8 and 12 and elkington's triple bottom line and…

A: Goal 8: Decent work and economic growth: Promote comprehensive and effective employment, fair work…

Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…

A: Cash flow is the net balance of money coming into and going out of a firm at a particular moment in…

Q: Assume that the production function for a certain production process is given by the following…

A: Marginal product is the increase in output produced by employing one more unit of the input.

Q: How much money should be deposited each year for 7 years starting 1 year from today, if you wish to…

A: Present value is approach that is based on a concept that amount of money today will be worth more…

Q: The cost of maintaining a certain permanent monument in Washington DC occurs as periodic outlays of…

A: Given  Equal annual cost each year =$1000 Every three-year maintenance charge =$3000 r=10% per year.…

Q: Defined capital budgeting. What are the capital budgeting methods used by managers?

A: The process by which a company decides which investments in projects or purchases of fixed assets…

Q: With respect to the economy depicted in the graph below: a b с Price Level (P) d P₁ Select an answer…

A: The AD-AS framework shows the relationship between price and real output in the short-run as well as…

Q: Consider each scenario independently. In each of the following cases tell me, using verbal and…

A: Here we are given the situation of various markets and the events which might either affect the…

Q: The WTO has been able to solve all global trade problems. A) True B) False

A: WTO was established in 1995 during the GATT (General Agreement on Trade and Tariffs) discussions in…

Q: A unit of welding machine cost P 45,000.00 with an estimated life of 5 years. Its salvage value is P…

A:

Q: Suppose that Monique eats lobster eight times per month when the price is $10 and six times per…

A:

Q: ppose the own price elasticity of demand for good X is −2, its income elasticity is 3, its…

A: The elasticity of demand measures the degree of responsiveness of demand to change in the factors…

Q: What is the relationship among the AD, SRAS and LRAS curves when the economy is in macroeconomic…

A: AD is the aggregate demand  SRAS is the short run aggregate supply LRAS is the long run aggregate…

Q: Anna and Belle are playing chess. Outside the knowledge of Belle, Cathy made a deal with Anna that…

A: In any game, the players may or may not have complete information about other players.

Q: O a. P2,200.00 O b. P2,400.00 P3.000.00

A: Given initial cost = 9,000 P Salvage = 1,000 Time = 10 years

Q: The tightness of the labor market is defined as: number of employed worker per filled job number of…

A: Introduction  The labor market, also known as the job market, refers to the supply of and demand for…

Q: p=120-2q. qis the number of rounds of golf that he plays per year. The manager of the Northlands…

A: Two part tariffs means charging the fixed fee or right to buy the good the good and second, the…

Q: Consider a position consisting of a K200,000 investment in Asset A and a K300,000 investment in…

A: Value at Risk (VaR) refers to a financial metric that provides an estimation on the risk for an…

Q: 1. What notation do we use for the backwards-induction outcome?

A: Since John von Neumann and Oskar Morgenstern released their book Theory of Games and Economic…

Q: ME

A: We have given production function  Q=0.5K2L2 With L=K=2,

Q: An increase in income taxes _______ the tax wedge, and an increase in taxes on consumption…

A: Tax wedge refers to a net difference in gross income and net income after deduction of taxes. Thus…

Q: Firms use rubber to produce either bicycle tires and car tires.  Suppose consumers want to ride…

A: Two goods are considered substitutes in economics if they can both satisfy the same need. In the…

Q: 32. a. b. 31. What is the maximum change in equilibrium real GDP that could occur as result of a…

A: The most prevalent automatic stabilisers are progressive tax systems and transfer payments. These…

Q: What industry is the closest example you can think of to perfect competition, and why? What are its…

A: The market structure, which has numerous buyers and sellers, is perfect competition. The market…

Q: Use the analysis for the market for loanable funds diagram to illustrate and explain how the…

A: The equilibrium in the loanable funds market occurs at such an interest rate where the demand for…

Q: The marginal costs, average variable costs (AVC), and average total costs (ATC) for a firm are shown…

A: In a perfectly competitive market, a firm chooses to produce at the output level where the marginal…

Q: The rate of return to bonds should be near equal to the equilibrium interest rate in the credit…

A: The equilibrium interest rate arises at a point where the quantity of money demand is equal to the…

Q: In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption…

A: Consumption Function : C=750+0.9Y   Autonomous consumption is that consumption level that occurs…

Q: Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse…

A: Given that, Demand function, p = 120-2 Marginal Cost, MC = 40   To calculate: Profit maximizings.

Q: The following figures are from data on Good Island Economy Items $m Net private investment…

A: Gross private investment is a metric used to describe how much money corporations spend…

Q: 1) Consider the follows Projects: If MARR= 17%. Recommend the best choice based upon ROR analysis: C…

A: Given Cash flow   Cash flow Year Project A Project B Project C Project D 0 -500 -1000 -800…

Q: The unemployment rate is defined as divided by. Number of individuals without jobs; Number of…

A: When certain workers are unable to find employment in the economy despite actively hunting for it at…

Q: Suppose that the parents of a young child decide to make annual deposits into a savings account,…

A: Annual deposit be A Deposits begin when a person becomes five and they turn fifteen. Beginning at…

Q: Can these activities be considered part of GDP?  (i) A garage buys spare tires to sell to customers…

A: GDP refers to the total value of goods and services being produced inside the geographical…

Q: Mars Ltd. Invested $321 at 2.5% interest rate which compounds quarterly. Calculate the value after 7…

A: Introduction: It is given the invested amount is $321 and the interest earned on this investment is…

Q: When a country has a comparative advantage in the production of a good, it means that it can produce…

A: Opportunity cost is the cost of producing one good in terms of other.  Comparative advantage is when…