What is fiscal policy? Distinguish between a discretionary fiscal policy and a non- discretionary fiscal policy. Give examples

Q: Interest rate 2% 4 6 8 10 Transaction demand for money $220 220 220 220 220 Asset demand for money…

A: Total money demand is a sum of transaction and asset demand for money.

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A: The expected value is explained as the difference between expected profits and expected expenses.…

Q: Directions: Plot the following hypothetical market demand and supply schedules for commodity X in a…

A: Equilibrium quantity is when there is no lack or surplus of a product in the market. Supply and…

Q: Consider a dynamic game of complete and perfect information. Suppose there are now simultaneous…

A: Given,  A Dynamic Game of complete and perfect information.  A Dynamic Game is defined as a game…

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A: Universal Basic Income (UBI) is a type of transfer income that all the citizens of a country receive…

Q: A B 1 Car Sales Report Month 2 3 Jan. - April 4 May-Aug. 5 Sept. - Dec. 6 TOTAL 7 MINIMUM C 214 355…

A: The data gives the sale figures for cars from 2016 to 2018. Each year is subdivided into three…

Q: 1. What is the relationship between the time value of money and inflation? 2. Compare simple…

A: Since you have asked multiple questions, we will solve first question for you. If you want other…

Q: What are the barometers that the National Bureau of Economic Research’s Business Cycle Dating…

A: Business cycle refers to the fluctuation in the economic activities over a period of time.  The…

Q: You are researching the options for pricing the courses. Your goal is to achieve maximum revenue to…

A: Since you have asked for multiple subparts, we would be answering the first 3 for you. To get the…

Q: If the sample mean is 10, the standard deviation is 2 and the sample 004 0.1 O 0.2 0.3

A: Given that, Sample mean = 10 Standard deviation = 2 Sample size = 100

Q: Price adjust until quantity demanded equals quantity supplied.

A: Competitive market- It refers to to a market where many buyers and sellers meet and they have…

Q: The central bank conducts an open market sale of securities at the same time a natural disaster…

A: The central bank of the country controls the money supply. Money demand depends on the interest…

Q: Campus Bookstore is the only textbook supplier in the town, a profit-maximizing business. Customer…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: This question relates to the following news article New Zealand dollar drops to lowest value against…

A: To find the impact of monetary policy tightening by other central banks on the growth of New Zealand…

Q: Consider a hybrid vehicle with a price of $30,000. This vehicle will average 30 miles per gallon of…

A: Information provided: Hybrid Vehicle: The price is $30,000 The average miles per gallon of gasoline…

Q: Consider Snackistan, a hypothetical country that produces only burgers. In 2016, a burger is priced…

A: Money neutrality says that change in money supply has no effect on real variable. Only nominal…

Q: Distinguish between a discretionary fiscal policy and a non - discretionary fiscal policy. Give…

A: The use of government spending and tax policies to influence economic conditions, particularly…

Q: The law of demand states that: price and quantity demanded are inversely related. the larger the…

A: Demand curve is the graphical representation of demand schedule.  Demand schedule is the tabular…

Q: Covid-19 global economic pandemic has negatively affected economies as a whole at the global,…

A: The global economy has witnessed a meltdown since the outbreak of the Covid-19 pandemic in 2020. The…

Q: Annual Hours Worked - = a + ß*Hourly Wage Rate+y*Non-Labor Income Per Year where a=4, ß= 2 and y =…

A: Here we will calculate the elasticity of labor supply using the below mentioned formula Elasticity…

Q: Interest rate B) $480. C) $460. D) $440. 2% 4 6 8 10 Transaction demand for money $220 220 220 220…

A: Equilibrium is where money supply curve intersects money demand curve.  The money supply curve is a…

Q: SITUATION: FEDERAL RESERVE EXPANDING THE MONEY SUPPLY Suppose the Federal Reserve decides that it…

A: The MS(money supply) is a macroeconomic variable controlled by the Central bank of a country. It…

Q: □ A firm hires two people and output increases by 20 units. The firm adds one more person and output…

A: Marginal value is the value derived from the additional unit of variable.  Marginal product of labor…

Q: 1 2 WN 3 4 5 6 7 8 9 WN=86 10 11 12 A B Capital (K) 1 1 1 1 1 1 1 1 1 1 с Labor (L) 1 AWNP 2 3 4 5 6…

A: Total product is the total amount of quantities produced by the labors.  Average product is the…

Q: Consider a perfectly competitive firm in short run. If this firm faces a market equilibrium price…

A: A market is said to be perfectly competitive when the participants in the market are in large…

Q: New Zealand dollar drops to lowest value against US dollar since 2020 (27/09/2022) The New Zealand…

A: The phenomenon of rising prices is termed as inflation. Inflation reduces the real value of…

Q: Calculate the real GDP for 2011, 2012 and 2013. Also the growth rate in real GDP for 2012 and 2013.

A:

Q: 3. Using the AS/AD model, show the effect of a new inflation target below the current inflation…

A: The aggregate supply curve depicts the overall supply of goods and services in the economy in a…

Q: Which of these is a possible cause of the value of the Gini coefficient increasing from 30 to 35? a.…

A: The Gini coefficient is an economic indicator that represents the income distribution in the…

Q: Describe the characteristics of an oligopolistic market and explain whether it is socially efficient…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

Q: Suppose the quantity supplied falls, relative to the values given in the table above, by 20 million…

A:

Q: Please if you can show the work manually where it applies

A: According to the Ricardian model, it is possible for an industry in a developed nation to compete…

Q: Suppose is preferences are represented by the following utility function: u=x-y. Which of the…

A: A consumer maximizes his/her utility at that point where the slope of the indifference curve equals…

Q: According to the Economics Policy Institute (Mishel and Wolfe, 2019) CEO pay has grown 940% since…

A: According to Adam Smith, the invisible hand is needed for the market to work efficiently. The…

Q: My sister graduated high school, she decided to go to university. The opportunity cost of going to…

A: Opportunity Cost is the cost of the next best alternative that is sacrificed in order to select some…

Q: State of Economy Probability T-Bills Phillips Pay-up Rubber-Made Market index Recession 0.2…

A: Given, State of the economy Probability T-Bills Philips Pay-up Rubber-Made Market Index…

Q: 1. A man paid 10% down-payment of P200000 for a house and lot and agreed to pay the 90% balance on…

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

Q: A machine costing P480,000 has a life expectancy of 12 years with a salvage value of 10% of the…

A: The declining balance method accelerates depreciation by recording higher depreciation costs in the…

Q: Lesson 3.5-Price Elasticity of Demand and Straight-line Demand Curves 1. Using the graph provided,…

A: The relationship between the percentage change in a product's quantity demanded and the percentage…

Q: A project consists of the following tasks, with task times in weeks. Use the data provided to…

A: * SOLUTION :-  Given that ,

Q: Assume the following about a manufacturing plant: • Typical monthly output = 100 ● Typical monthly…

A: The fixed cost is the cost which does not depend on quantity of output produced and it remain the…

Q: Money neutrality is the idea that a. any policy can have intended and unintended consequences b.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A risk neutral insurer offers to insure an individual with a wealth of 25 dollars against a loss of…

A: Given information Initial wealth=25 Loss=21 For A-- Loss probability=0.33 and no loss=0.66 For B ---…

Q: Which of the following is a normative statement: a. Women’s labor force participation (LFP)…

A: Positive statements are those statements that are based on facts and can be checked whether it is…

Q: Suppose company XYZ produces a differentiated commodity. The company has substantial control over…

A:

Q: 12. If a monopoly takes over 100% of a market previously operating under perfect * competition, the…

A: Perfectly competitive market is characterized by the presence of many sellers and buyers. The single…

Q: (a) What is the equilibrium level of real GDP in this economy? (b) Compute the marginal propensity…

A: Aggregate expenditure is the sum of consumption, planned investment, government spending, and net…

Q: Find the subgame perfect outcomes for the game described in question 4. Which of these outcomes is…

A: A Bimatrix game in game theory is a two-person simultaneous game in which each player has a finite…

Q: Calculate the approximate price relatives to two decimal places for the MTN and Vodacom stocks over…

A: Stock Po qo P1 q1 Poqo Poq1 P1q0   2008 2008 2011 2011       mtn 285 370 215 480       Vodacom…

Q: Consider a marriage market with three men and three women, all of whom prefer any match to being…

A: Given information