When one focuses on aggregate demand and aggregate supply in macroeconomics, the main focus is on..... a. whether the goods are useful and wanted by consumers. b. whether the goods generate either positive or negative externalities c. what total spending is in relation to total production and its effects on the macroeconomic problems of unemployment and inflation d. both a) and b) are correct
Q: Problem 1. The following specifications are given for an economy: Consumption, C = 250 + 0.75 Yawher...
A:
Q: a. At a required return of 12 percent, what is the NPV of the project? (Do not round intermediate ca...
A: All cash flows are discounted with an appropriate discounting rate to arrive at their present value,...
Q: The table below shows the probability distribution of X. Find V(X), that is, the variance of X to th...
A: A probability distribution depicts the expected outcomes of possible values for a given data generat...
Q: Q1. State the definition of the Golden Rule kGR, Q2. The goods market elearing condition is given by...
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost th...
Q: At full employment, the expected inflation rate is A. higher than the inflation rate O B. equal to t...
A: Full employment refers to an economic condition in which all available labour resources are being em...
Q: Price Flo's Supply Rita's Supply 2 4 15 12 Table 4.1 Refer to Table 4.1, which shows Flo's and Rita'...
A: The amount of a good that sellers are willing and able to sell is referred to as quantity supplied. ...
Q: In the Classical model, an decrease in savings would result in Multiple Choice A rise in interest ra...
A: According to classical economics, saving was a rising function of the rate of interest. The investme...
Q: The odds against Manager X settling the wage dispute with the workers are 8:6 and odds in favour of ...
A:
Q: MC ATC 12 10 ... 4 2 20 40 60 80 100 Quantity (pages per hour) Suppose the price of a copy is 10 cen...
A: Given;
Q: How does the Federal Reserve control the money supply in the United States
A: The Fed can influence the provision of funds by changiñg the reserve requirements, which usually mea...
Q: Suppose the consumption of an economy is given by C = 20 +0.6Y The following investment function is ...
A:
Q: 1. Suppose the Central Bank has just announced a higher overnight interest rate, thereby decreasing ...
A: Here, it is given that Central Bank increased the overnight interest rate to reduce the desire for n...
Q: Assume i=0%, beta=1. Consumer has income of 80 in year 1, 100 in year 2. Now suppose gov't gives con...
A: In the policy of the fiscal expansion that government starts the policy of borrowing and using the m...
Q: The first cost of machine is P 1,800,00 with a salvage value of P300,000 at the end of ts life of 5 ...
A: The digits of the years added together Because the capital is most efficient in the early years of i...
Q: The transition from short-run to long-run equilibrium in a monopolistically competitive industry is ...
A: Perfect competition is a type of market structure in which there are large number of buyers and sell...
Q: The question is: Draw the indifference curve diagrams for the utility functions listed below. Plot ...
A: The indifference curve shows the different combinations of two goods that provide the same level of ...
Q: The economy of Eastlandia in 2021: • C = 260 + 0.5YD • P = 100 %3D • T= TR = G= NX = 0 The equilibri...
A: Actually in simple words we can say that the Real GDP is considered as an Nominal amount of the GDP ...
Q: what are two examples, of companies’ respecting the rights of employees and of companies’ failing to...
A: *Answer: The company should pay to the employees the living best show that can support their famili...
Q: (3) A firms production function is Q(L) =15L' -0.1Ľ' , where output (Q) is a function of a single in...
A: Answer: Given, Production function: QL=15L2-0.1L3 (1). To find the number of workers required to max...
Q: What happens to the AD curve when the nominal interest rate reaches zero? Why? What happens when the...
A: The clear effect of how the aggregate demand curve would react whenever the nominal interest rate is...
Q: 11. An increase in the exxpected price supply and demand for corn: a. increase both the demand and t...
A: The economic dynamics that decide what providers are willing to create and what buyers are willing a...
Q: In the figure, as the price level increases the aggregate demand curve will O A. not shift. O B. not...
A: The curve that depicts the quantities of goods and services being demanded by individuals at various...
Q: The following graph shows the demand (D) for gas services in the imaginary town of Utilityburg. The ...
A: Answer: Equilibrium in monopoly: a firm experiences equilibrium where the MC and MR intersect each o...
Q: RON T PAGE alifornians Vote to Triple Cigarette Tax acramento, CA-Californians voted to more than tr...
A:
Q: Need proper explanation
A: Central bank is the head of all commercial banks. There are many responsibilities that the central b...
Q: Consider the Cobb-Douglas utility function of a consumer is given as u (z y) := 1"y where a > b and ...
A: Given; Utility function; u(x,y)=xaybwhere;a>b and the sum (a, b) and the product (a,b) are 1 and...
Q: The handcart market contains many identical firms and operates perfectl competitively. Each firm has...
A: Total Cost function : 400 + 5q + q2 In perfectly competitive market optimal production level is achi...
Q: What are the difference between PRIVATE COST and SOCIAL COST in terms of 'educational institutions' ...
A: An externality is a cost that occurs for the third party who does not bear the cost to society. It m...
Q: It costs 100, 000 pesos at the end of each year to maintain a certain portion of a highway. If money...
A: Given: The cost of maintaining a certain portion of a highway is = 100,000 pesos The money is worth ...
Q: This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the Phi...
A: Total cost is the expenditure that is incurred in the production of the goods. It means the total co...
Q: An existing robot can be kept if $2,000 is spent now to upgrade it for future service requirements. ...
A: Introduction Annual worth has calculated to check when we are using a particular machine then every ...
Q: Now draw a supply-and-demand diagram for the liquor market with the tax. Show the price paid by cons...
A: Answer -
Q: 9. If the supply of and demand for a product decrease at the same time, then equilibrium a. quantity...
A: The economic dynamics that decide what providers are willing to create and what buyers are willing a...
Q: An economy is considered a small open economy if it A. is too small to affect the world real inter...
A: Open economy refers to the economy which trades with other countries.
Q: Suppose country A has five families. Their incomes are $10,000, $20,000, $30,000, $40,000, and $50,0...
A: Given: The number of families is = 5 Income of the families are $10,000, $20,000, $30,000, $40,000, ...
Q: Which statement is CORRECT? O A) Automatic stabilizers indicate deliberate action by policy makers. ...
A: Answer: In the case of discretionary fiscal policy, the government takes deliberate action to either...
Q: volatity during a to Selected period a Pay foxed volatility during a Fixed volatility and nominal va...
A: Correct answers given below,
Q: A project with a smaller payback period is better than projects with higher payback period. A. Alw...
A: Payback Period:- The payback period can be explained as the amount of time it takes to recoup the p...
Q: Consider the game tree below (attached). In this game, each player can mover either Up (U) or Down (...
A: Given game tree
Q: All the following statements are incorrect about international equity markets except? O In the inter...
A: The collection of financial instruments including bonds, stocks, exchange-traded funds, and commodit...
Q: Find the value of the primary deficit if the fiscal deficit is 186 and the interest payment by the ...
A: Given: Fiscal deficit=186 Interest payment by the government=131
Q: Hi, i need help with part a and d only. Thanks
A: Gross domestic product is the value of goods and services that are produced within the given time pe...
Q: An analysis of monthly wages paid to the workers of two firms A aud B belonging to the same industry...
A:
Q: If two companies are seeking regulatory approval to merge their respective businesses, which of the ...
A: A merger refers to the legal agreement between two firms to work together and act as a single firm. ...
Q: | calculate the inflation/deflation if growth rate was 0.2 percent a year, the money growth rate was...
A: Inflation refers to the increase in the price level of goods and services of a country over a period...
Q: Q Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of ...
A: We show that deadweight loss from the tax given below
Q: Please solve using a national income accounting That tax increases (with no change in transfer paym...
A: The national income accounting measures the overall health of the economy. To measure the national i...
Q: Question 5 The price of input X decreases by 15%. In response, the quantity of input Y demanded incr...
A: Answer (5): Given, Percentage decrease in price=-15%Percentage rise in quantity demanded=6% Elastici...
Q: If you deposit dollar 10000 into a fund paying 6% interest compounded monthly. how much can you with...
A: Given the present value in the fund = 10000 Interest rate = 6% Monthly interest rate = 6%/12 = 0.5% ...
Q: How has technology eased the task of assessing actual food costs and actual beverage costs?
A: In economics, technology is often regarded as the fundamental driver of economic progress in countri...
Step by step
Solved in 2 steps
- please explain each question. 1. We assumeconstantMPC in our model. Is this assumption true in the real world? 2. What determines the proportion of bonds/money that the household keeps? 3. What effect an increase of government spending will have on the output equilibrium in the goods market? Explain using autonomous spending.Which of these economic problems is not associated with the study of macroeconomics? a. How to increase employment rate? b. How to influence aggregate demand through taxation? c. How to predict the demand for medicines? d. How to get out from economic recession?Course: Macroeconomic - IS-LM Model Prove mathematically the following: Given an increase in the proportional tax on income(t), what happens to the level of output and to the tax?" . Hint: for demostration, use the IS general function for a closed economy Y = C + I + G, where C = a + c*YD and YD = Y + TR - Y*t (where t = proportional income tax) and realize changes i.e., from "t1" to "t2"
- Suppose an economy is hit by a recession and people’s income fall. a) Show graphically using AD-AS model how the price level and output are affected in the short-run. b) Can the government use fiscal policy to offset the effects on both price level and output simultaneously, explain? Answer Must be correct . Do all step. Don,t copy from anywhere.The Social Security system levies a tax on workers and pays benefits to the elderly. Suppose that congress increases both the tax and the benefits. For simplicity, assume that the Congress announces that the increases will last for one year only. a. How do you suppose this change would affect the economy? (Hint: Think about the marginal propensities to consume of the young and the old.) b. Does your answer depend on whether generations are altruistically linked?In Germany in 2009 there was considerable debate about the extent to which thegovernment should be intervening in the economy. For example, its citizens were worriedabout the future of Opel, a German car brand that was part of the ailing General Motors.Some wanted the government to make sure jobs were saved no matter what. Others,however, were more hesitant and worried about becoming the government becoming toointerventionist. Traditionally since the Second World War the German government hasseen itself as a referee in market issues and has avoided trying to control parts of theeconomy. It would regulate anti-competitive behaviour, for example, but not try to runmany industries. However in the recession of 2009 when the economy was shrinking thegovernment was forced to spend more to stimulate demand and had to intervene heavilyto save the banking sector from collapse. The government also had to offer aid tobusinesses to keep them alive. 1. What are the possible benefits of a…
- In Germany in 2009 there was considerable debate about the extent to which thegovernment should be intervening in the economy. For example, its citizens were worriedabout the future of Opel, a German car brand that was part of the ailing General Motors.Some wanted the government to make sure jobs were saved no matter what. Others,however, were more hesitant and worried about becoming the government becoming toointerventionist. Traditionally since the Second World War the German government hasseen itself as a referee in market issues and has avoided trying to control parts of theeconomy. It would regulate anti-competitive behaviour, for example, but not try to runmany industries. However in the recession of 2009 when the economy was shrinking thegovernment was forced to spend more to stimulate demand and had to intervene heavilyto save the banking sector from collapse. The government also had to offer aid tobusinesses to keep them alive. 1. What prompted greater intervention by the…describe the economic viewpoints and theories of John Maynard Keynes. What were his views of the causes recessions and solutions to fixing them? In his view, what place did government have to improve markets? What does the concept of "crowding out" mean in all of this?Macroeconomics question: In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and reduce unemployment. If the MPS is 0.4, then it could increase government spending by: A. $20 billionB. $10 billionC. $40.50 billionD. $31.25 billion
- Suppose an economy is hit by a recession and people’s income fall. a) Show graphically using AD-AS model how the price level and output are affected in the long-run. b) Can the government use fiscal policy to offset the effects on price level and output, explain?3. In each of the following circumstances, decide whether the impact of government on the economy increases or decreases and why. In each case, how does your answer compare to that given by standard measures of the size of government? a. Provincial governments mandate that employers provide daycare centres for the use of their employees. b. Provincial governments subsidize daycare centres with parents paying $ 5 in user fees per day. c. Provincial governments open government-run daycare centres. d. The federal budget is brought into balance by reducing grants to provincial governments.Q. In January 2009, the federal government announced an economic stimulus package of $35 billion in response to the recession in Canada. (a) Is this an example of hands-off or hands-on position on government policy? Explain. (b) Where can you find out what happened to Canada’s GDP in the years following the stimulus spending?