ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
14th Edition
ISBN: 9781337912396
Author: Baumol
Publisher: CENGAGE L
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Question
Chapter 22.A, Problem 6TY
a)
To determine
Calculate the fraction of total spending.
b)
To determine
The weighted average of percentage increase in prices.
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Answer choices for part 1 blanks:
Blank 1: shortage, surplus
Blank 2: falls, remains the same, rises
Blank 3: decrease, do not change, increase
Blank 4: decrease, do not change, increase
There is one last part to this question that did not fit in the picture:
Suppose the economy experiences domestic goods become relatively less expensive than foreign goods. Adjust the graph to show the effect of domestic goods become relatively less expensive than foreign goods on the economy.
Which of the following best describes the effect of domestic goods become relatively less expensive than foreign goods?
a.) The price level rises back to PE, and Real GDP increases from $30 trillion to $35 trillion.
b.) The price level rises even higher above PE, and Real GDP increases from $30 trillion to $35 trillion.
c.) The price level falls even further below PE, and Real GDP decreases from $30 trillion to $35 trillion.
d.) The price level falls but remains above PE and Real GDP…
If your income is $60 and the prices of product A and product B are $4 and $3,
respectively, how many units of product B can you purchase when all your
income will be used to purchase product B only? Use a number, no decimal value,
no commas, no space, no unit of measurement. *
Your answer
If your income is $60 and the prices of product A and product B are $4 and $3,
respectively, what would be the function of the budget line, when product A is
assigned on the Y axis? *
O Qb = 20 - 1.33 Qa
O Qa = 15 - 0.75 Qb
O Qb = 15 - 1.33 Qa
%3D
Qa = 20 - 0.75 Qb
Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers.
GDP
Consumption expenditures
$600
Exports
$75
Government purchases of goods and services
$200
Construction of new homes and apartments
$100
Sales of existing homes and apartments
$200
Imports
$100
Beginning-of-year inventory stocks
$100
End-of-year inventory stocks
$150
Business fixed investment
$100
Government payments to retirees
$100
Household purchases of durable goods
$150
Consumption expenditures: $
Investment expenditures: $
Government Purchases: $ Net Exports: $ GDP: $
Chapter 22 Solutions
ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
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