Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all thatapply.The mojito Lucia receivesO The $350 per week Kenji earns working for Little HavanaThe $250 Kenji spends to purchase legal service from Rowan and Martin AssociatesLucia's labor 2. The circular-flow modelThe following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and theinner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.FirmsMarkets forGoods and ServicesMarkets forFactors of ProductionBased on this model, firms earn revenue whenEventHouseholdspurchaseSuppose Lucia earns $650 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to order a mojito cocktail at LittleHavana. Little Havana pays Kenji $350 per week to wait tables. Kenji uses $250 to purchase legal service from Rowan and Martin Associates.in product markets.Identify whether each of the following events in this scenario occurs in the factor market or the product market.Factor Market Product MarketKenji earns $350 per week working for Little Havana.Lucia spends $10 to order a mojito cocktail.Kenji spends $250 to purchase legal service from Rowan and Martin Associates.

Circular flow of diagram represents the interrelationship between the four sectors of the namely…

Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that pply. The mojito Lucia receives The $350 per week Kenji earns working for Little Havana The $250 Kenji spends to purchase legal service from Rowan and Martin Associates Lucia's labor

Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that pply. The mojito Lucia receives The $350 per week Kenji earns working for Little Havana The $250 Kenji spends to purchase legal service from Rowan and Martin Associates Lucia's labor

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.6P

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2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, firms earn revenue when purchase in product markets. Suppose Latasha earns $550 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Jake $350 per week to work as a short-order cook. Jake uses $250 to purchase air travel to Hawaii from Flyaway Airlines. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Latasha earns $550 per week working for Flyaway Airlines. Jake spends $250 to purchase air travel to Hawaii from Flyaway Airlines. Latasha spends $10 to have…
DI=Y OUTPUT/INCOME CONSUMPTION(C) SAVINGS (S) MPC MPS APC APS 0 80 ______ ____ _____ _____ _____ 100 140 _______ _____ _____ _____ __ ____ 200 200 _______ _____ _____ _____ _____ 300 260 _______ _____ ______ ______ _____ 400 320 _______ ______ ______ ______ ______ a. Complete the following chart above b. Show graphically ( what is the equilibrium level of output)? c. Assume the following general forms of a…
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13. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, households earn income when_________ purchase______ in factor markets. Suppose Valerie earns $700 per week working as a programmer for PC Pros. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Shen $400 per week to work as a short-order cook. Shen uses $125 to purchase software from PC Pros. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Valerie spends $10 to have breakfast. Shen spends $125 to purchase software from PC Pros. Valerie earns $700 per week working for PC Pros. Which of the elements of this…
Karrie is a golf pro, and after she paid taxes, her income from golf and her interest from financial assets totalled $2,500,000 in 2019. At the beginning of 2019, she owned $1,100,000 worth of finanialassets. At the end of 2019, Karrie's financial assets were worth $1,300,000. How much did Karrie spend on consumption goods and services during 2019 ? Karrie spent $ enter your response here on consumption goods and services.
Suppose we are in an economy with rich households and poor households. Rich and poor households have different consumption functions, with Cpoor = 100 + 35(Y poor − Tpoor) Crich = 100 + 15(Y rich − Trich) where Y rich, Y poor are the incomes of rich and poor households and T rich, T poor are the taxes faced by rich and poor households. We also have I = 200,G = 100, T = T poor + T rich = 100. Closing out the model, Y = C + I + G = Cpoor + Crich + I + G a Suppose that Y poor = Y rich Y2 (in other words, the total income of poor households is equal to total income of rich households.) Supposing further that T rich = T poor = 50, calculate equilibrium output Y . b Now suppose that Trich = 40,Tpoor = 60. What is equilibrium output now? c How can the government increase output without changing the deficit (hint: think about the difference between output in b and output in c.) d Now assume that T rich = 40, T poor = 60, but instead of output being split equally between rich and poor…
During the 2007–2009 recession, the value of commonstocks in real terms fell by more than 50%. How mightthis decline in the stock market have affected aggregatedemand and thus contributed to the severity of therecession? Be specific about the mechanisms throughwhich the stock market decline affected the economy.
2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. (diagram attached as an image)    Based on this model, households earn income when( a. firms b. households ) purchase( a. factors b. goods and services) in factor markets. Suppose Becky earns $750 per week working as a corporate attorney for Rowan and Martin Associates. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Alex $475 per week to wait tables. Alex uses $175 to purchase legal service from Rowan and Martin Associates. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Alex spends $175 to purchase legal service from Rowan and Martin Associates. Alex…
2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.    Based on this model, households earn income when   purchase   in factor markets. Suppose Maria earns $775 per week working as a doctor for the Medical Clinic. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Kevin $475 per week to work as a short-order cook. Kevin uses $250 to purchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Kevin spends $250 to purchase medical services from the Medical Clinic. Maria spends $8 to have breakfast. Kevin earns $475 per week working for Dinah's Diner.…
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