Explain how Milton Friedman's economic views differed from those of Keynes and explain why more recent developments in the global economy can be said to have vindicated both Friedman's and Keynesian economic views.

Q: A series of uniform accounts over an infinite period of time. Depreciation Annuity O Perpetuity Infl...

A: Depreciation refers to the rate of decline of capital stock. Annuity refers to a stream of income fr...

Q: The gross domestic product (GDP) deflator is a measure of the price level that includes prices of a)...

A: The formula for GDP deflator is GDP Deflator = (Nominal GDP / Real GDP) * 100

Q: Which of the following price elasticities of demand would indicate inelastic demand? O 1 O 10 O 0.5 ...

A: Price elasticity measures the responsiveness of demand of a good to its change in price of that good...

Q: Why might the level of government debt affect the government’s incentives regarding money creation?

A: The process through which the supply of money is being increased in an economic region or a country ...

Q: Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 k 2...

A: Consumer Surplus when there is no tax = 1/2*(22-10)*600 = 300*12 = 3600 Consumer Surplus when there ...

Q: The vertical distance between points A and B represents a tax in the n 1Price 12 11+ 10 Supply 9 8+ ...

A: The total surplus is sum of consumer surplus and producer surplus.

Q: 1. Compute for the price elasticity of demand using the elasticity formula. Supplement your answer w...

A: Qd  is the quantity demanded which is the quantity which the consumers are willing to buy at prevail...

Q: Question 1 If the full-employment GDP is $5,040, then the economy of country T experiences an econom...

A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a t...

Q: A. Solve step by step B. What type of equation is this 10X²-12 >0

A: Answer is given below

Q: a) Examine the market structure of the corn market. Draw a suitable corn market and also  an individ...

A: A market is a place where buyers and sellers can gather to facilitate the exchange of goods and serv...

Q: On an island lives 2 persons, you and neighbor. You have an avocado tree, which grows 130 avocados ...

A: My utility function is, U(C1,C2)=C1C2, where Ci is the number of avocados consumed in the period i. ...

Q: Question 41 If inflation occurs in a country, we know that a) both real and nominal wages are rising...

A: Correct option is b).

Q: Compute the economy's GDP using the expenditure approach. Assume that all transactions are 2019. C G...

A: GDP = consumption expenditure + investment expenditure + government expenditure + net exports

Q: 3. The more important question concerns the cumulative effect of an initial change in autonomous spe...

A: The Keynesian cross model says, Y=C+I+GC=a+cY where C, I and G are consumption , investment and Gove...

Q: y1=100, y2=20 beta=0.5 and i=0% Calculate optimal saving s=______

A: Introduction: The savings rate is a measurement of how much money a person deducts from their dispos...

Q: The following graph shows the labor market in the fast-food industry in the fictional town of Supers...

A: Equilibrium occurs at the intersection point of the demand and supply curve.  In this market, the eq...

Q: Question 5 5.1 Suppose an economy's production function is Y = AK L'«. If the annual rate of economi...

A: Question 5:- Given; Production Function; Y=AKαL1-α Annual rate of economic growth= 4.5% Labor growth...

Q: In a model with no government or foreign sector, if autonomous consumption is c30, investment is 150...

A: MPC is the Marginal propensity to consume which shows the ratio of change in change in consumption t...

Q: In a college town, a friend of yours spent $100,000 on a small apartment building. She paid $10,000 ...

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

Q: Channels through which the federal budget is impacted in an economic recession in general. 2. The ma...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: Job search engines, such as Indeed and Monster.com, have enabled workers and companies to find each ...

A: The job search engines allows employees and businesses to connect more quickly and effectively at a ...

Q: Explain the shapes of Demand and Supply curves of Reserves (after 2008) and explain why the curves h...

A: Answer-

Q: de-regulation and privatisation improve the efficiency of public sector activity. do you agree with ...

A: The private sector is defined as the portion of the economy held by private individuals. Profit maxi...

Q: 11.The Harrod-Domar model of growth key ingredients are: a. The depreciation rate is endogenous to ...

A: The Harrod-Domar model of economic growth is a Keynesian model. In development economics, it's used ...

Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A. decreasi...

A:   Diseconomies of scale means that the cost curve is upward sloping as we changes the factors of pro...

Q: Question-2 Explain by applying these concepts with examples. 1. Rational people respond to incentive...

A: Clarify by applying these ideas with models. 1. Rational individuals answer to motivating forces 2. ...

Q: See the picture below to answer the question) 1. Exactly how does computer technology increase produ...

A: 1 Computer technology has been in the recurring and providing the monotonous tasks, likely to make a...

Q: Another investment story: George inherited P500,000 from his grandparents when he was 5 years old. H...

A: From 5th year to 18th year,  F = P (F/P,i,n)   For 4 years of college education, A = P (A/P,i,n)

Q: what is a normal good?

A: Goods refers to the goods which are purchased by the consumer to satisfy their wants. Inferior goods...

Q: Paulina sells beef in a competitive market where the price is $5 per pound. Her total revenue and to...

A: Marginal revenue is a central concept in microeconomics that describes the additional total revenue ...

Q: Explain why macroeconomists like to build models and why do macroeconomists build models based on mi...

A: Economists are the people who study the concepts of economics in-depth and prepare a more detailed s...

Q: ofit make up and selling costs

A: Formula for  1 . page chant  cost - Dividing the cartridge page yield by the cost of printer cartrid...

Q: Two oil companies are deciding how much oil to extract from their properties, which lie above the sa...

A: Prisoner’s dilemma is the situation where both the party gets success only when they cooperate and i...

Q: Depict the following scenario using a graph. Assume that Major League Baseball goes from having free...

A: Monopsony is a market situation where by there are many suppliers but the buyer is only one. In this...

Q: dentify what you consider to be the political risks facing companies thinking of investing in your a...

A: Nation risk refers to the level of uncertainty associated with investing in a given country, and mor...

Q: A consumer has $600 to spend on good x and y. Her preferences can be represented by the utility func...

A: Given; Income of the consumer= $600 Utility function; U(x,y)=y+100In x Price of good x= $10 Price of...

Q: 3. Howard consumes only two goods. An economist has collected the following data on Howard's consump...

A: Paul Anthony Samuelson, an American economist, introduced the concept of revealed preference in 1938...

Q: The ratio of the interest payment to the principal for a given unit of time and usually expressed as...

A: Simple interest => p*r*t/100

Q: “All problems in economics are about scarcity, that is, about how to use given resources for satisfy...

A: "All economic problems are about scarcity, that is, how to use limited resources to achieve competin...

Q: Public Good Contribution: Three players live in a town, and each can choose to contribute to fund a ...

A: Answer-

Q: Question 11 Gross domestic product (GDP) is best defined as the total market value of all O a) final...

A:   Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and scarcit...

Q: We may classify an interest rate, which specifies the actual rate of interest or principal for one y...

A:     A nominal rate is the rate which the lender publishes as it is without taking compounding into t...

Q: If Mary Smith withdrew $100 from her savings deposit at Bank of America and kept it as cash,   Gro...

A: The economics as a study is based upon the idea that the resources which are present with the econom...

Q: The wage for union labor compared to non-union labor is: Select the correct answer below: the same h...

A: The economics as a study is considered to be a vast area of study. The basic idea of this whole stud...

Q: Would you expect supply to play a more significant role in determining the price of a basic necessit...

A:   Meaning of Demand and Supply: The term demand refers to the willingness of an individual to purcha...

Q: Data for movie tickets Quantity demanded Price ($ per ticket) (tickets per day) 7 300 8 200 100

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in pric...

Q: Describe how firms in Perfect Competition achieve both allocative and productive efficiency and thei...

A: There are two situations that arise in a perfectly competitive market, one is short-run equilibrium ...

Q: Why monetary policy and fiscal policy are important macroeconomic tools used to stimulate the econom...

A: Monetary policy is important to control the money supply in a economy . Inflation and interest rates...

Q: 1. Consider the market for cell phones in Celltown. Suppose that the inverse demand curve is P = -2Q...

A: Inverse demand curve P = -2Qd +300Inverse supply curve P = 3Qs +50Inverse demand curve is downward s...

Q: 33. A man buys a house and lot worth P2,000,000.00 if paid in cash. He agreed to pay a down payment ...

A: Given; Total price of house and a lot= P2000000 Down payment= P500,000 Amount paid at the end of one...

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.