When nominal wages increase, the short-run aggregate supply curve: disappears shifts to the left. shifts to the right.

Q: Evaluate and explain the following statements: a. The market system is a profit-and-loss system.b. C...

A: Market is a place where buyer and seller meet together. The objective of the market system is to buy...

Q: Given the following demand and supply functions Qd = 220−5P Qs = −20+3P if a per unit tax of 8 is im...

A:      

Q: the importance of gross domestic product (GDP), and how it is measured.?

A: GDP or Gross Domestic Product is the value of all final goods and services produced in a country in ...

Q: Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elas...

A: Demand curve is a curve which represents the relationship between the price and quantity. And price ...

Q: Classify each of these transactions as an asset, a liability,or neither for each of the “players” in...

A: Getting a $10,000 loan from the bank to buy an automobile is a asset to the bank because it has the ...

Q: Why do loan sharks worry less about moral hazard in connection with their borrowers than some other ...

A: The person who charges a very high-interest rate when lending is known as loan sharks. Moral hazard ...

Q: What explains why millions of economic resources tend to get arranged logically and productively rat...

A: The production is the process of transforming the resources into final goods and services that provi...

Q: Why might eliminating the central bank’s independence lead to a more pronounced political businesscy...

A: The elimination of central bank independence will lead to severe consequences on the economy : 1. It...

Q: Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say...

A: Nominal Gdp is the value of services and goods produced in an economy over a given  period of time. ...

Q: Most scalping laws make it illegal to sell—but not to buy—tickets at prices above those printed on t...

A: Most of the scalping laws make it illegal to sell the tickets at a price higher than that is printed...

Q: Why does the free-rider problem occur in the debtmarket?

A: The issue of free rider, arises when people who are getting advantages from the resources & publ...

Q: Why are spillover costs and spillover benefits also called negative and positive externalities? Show...

A: Basically, spillover cost is known as negative externality because this is cost bear by the producer...

Q: Ex Ante and Ex Post Real Interest Rates

A: Ex-ante is when we look at the future event based on all the possible predictions whereas Ex post wh...

Q: Which of the following is the number of cars available at equilibrium ? Select one: a. 3600 b. 60 с....

A: Equilibrium is a point in a market where the quantity supplied of any good is equal to the quantity ...

Q: How does an unanticipated decline in the price levelcause a drop in lending?

A: Moral hazard problem refers to change in the behavior of individual or firm towards the risky situat...

Q: a point inside a societys production possibilties curve represents? a. an output combination that sa...

A: The production possibilities curve represents the trade-off that occurs between the different choice...

Q: Explain in detail, with the aid of a graph, the two components of the demand for money. Identify the...

A: Two components of demand for money are : Transaction demand : Money required for transactions or to...

Q: In the market for goods and services in the circular flow diagram,  Select one:  A. firms provide ho...

A: The circular flow can be explained as the flow of goods & services along with the money, which b...

Q: What evidence is used to assess the stability of themoney demand function? What does the evidence su...

A: The velocity is used as the measure to check whether the demand for money in the economy is stable o...

Q: Solve it both subparts early.  Note:- not solve this question in excel works.  Use handwriting or ty...

A:

Q: What is the growth rate of output per person in this economy?

A: To find the growth rate of output per person, we need to first find the growth rate of output and la...

Q: A glue factory and steel mill emit smoke containing a chemical that is harmful if inhaled in large a...

A: Important ways to control negative externality by town government are: Tradable pollution permit:  I...

Q: Currency crises and the demand for dollars: Suppose there is a currency crisisin the rest of the wor...

A: Exchange rate is the price of a currency of one country in terms of the currency of another country....

Q: a good example of a resource would be? a. stocks b. Human capital c. bonds d. intital public offerin...

A: Resource refers to the service or the various assets owned by the business which are used for the pr...

Q: Describe the graphical relationship between ticket prices and the number of people choosing to visit...

A: Demand is the quantity a consumer is willing and able to purchase a good at a given price. The relat...

Q: Economic Models? a. are essential representations of the real world b. are used to explain how peopl...

A: Answer: Correct option: (a) Explanation: Economic models are used to find ways in which the economic...

Q: Consider two neighboring island countries called Contente and Felicidad. They each have 4 million la...

A: Initially, we need to go through the opportunity cost of the countries producing the corns and the j...

Q: A booming economy in Europe this year leads to an unexpected increasein the demand by European consu...

A: ANS If an economy is booming then the demand in that economy will be higher, if an economy in Europe...

Q: For a firm’s product, the demand function is p =72−0.04q and the average cost function is i. ¯ c = 5...

A: Answer: Given information: P (price) = 72 – 0.04q Where q is the quantity To find: Output at which...

Q: State (a) a positive economic statement of your choice, and then (b) a normative economic statement ...

A: Differentiate positive and normative economics: Positive economics is described as the descriptive e...

Q: Why does the Keynesian view of the demand for moneysuggest that velocity is unpredictable?

A: The velocity of money (V) is the rate at which money is exchanged in an economy for goods and servic...

Q: William does not feel comfortable with the currentlevel of the European Central Bank’s independence....

A: The central bank of every economy is entitled with the responsibility of ensuring the money supply c...

Q: Consider the portfolio choice theory of money demand.How do you think the demand for money would bea...

A: Hyperinflation is the rise in prices of goods and services by more than 50% per month. It is very hi...

Q: Demand and supply often shift in the retail market for gasoline. Below are two demand curves and two...

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts fo...

Q: What are the main difficulties encountered by the newlyestablished central banks in transition econo...

A: A transition economy is an economy that is in the phase of conversion from a centrally planned syste...

Q: What are the benefits of using a nominal anchor for theconduct of monetary policy?

A: The most important goal of monetary policy is price stability i.e. stable and low inflation in the e...

Q: Explain why dating can be considered a method tosolve the adverse selection problem.

A: Adverse Selection refers to a situation where sellers to the transaction has more knowledge compared...

Q: A company manufactures three product. The productis sold in three communities, X, Y and Z. The suppl...

A: The table looks like: Price Commodity X Commodity Y Commodity Z Market supply 100 520 640 700 1...

Q: True or False: Money must be issued by a government for people to accept it.

A: ANS Money can be anything that is used as a common medium of exchange irrespective of it is issued b...

Q: Refer to the previous exercise. Which type of foreign market intervention must the central bank ofCo...

A: Purchasing power parity (PPP) refers to the theory that indicated that the exchange rate of the two ...

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Q: Hello I only need help with D and E. Thank you

A: A monopolistically competitive market is characterized by the existence of a large number of small f...