a) In September 2020, ABC News reported that, “Australian recession confirmed as COVID-19 triggers biggest economic plunge on record”. Explain what is meant by the term ‘GDP Gap’, following Australia’s COVID 19 recession.
Q: U.S. Steel is planning a plant expansion that is expected to cost $13 million. How much money in…
A: We have; Cost = $13 million Interest rate = 12% per year, with continuous compounding. Time = 2 year…
Q: 18. Select all that apply. In a perfectly competitive market, MR equals Price Average revenue Total…
A:
Q: 1) In the method,two independent variable are assumed to have; a)Low collinearity b)High…
A: In the method the variable that are independent are assumed to have low collinearity No…
Q: 6. Eventually, Aron and Nora who we met in the previous problem were able to get together and have…
A: Given, There are two Players : Nora and AronNora has two strategies : Decide to go out OR Stay at…
Q: Question 1 :- (a) What is meant by an amortizing security? (b) What are the three components of…
A: Answer to the three sub parts are as follows:
Q: Which of the following is unlikely to affect the rate of economic growth? O 1) the quality of…
A: Introduction Economic growth refers to long term increase in real national income or real national…
Q: a.) Arthur’s demand to reduce electric and magnetic fields (EMFs) is P = 20 – 2 Q, while Ronald’s…
A: Arthur’s demand: P = 20 – 2Q Ronald’s demand: P = 15 – 3Q MC = $15
Q: First America Bank's monthly payment charge on a 48-month, $15,000 loan is $428.26. The U.S. Bank's…
A: Annual percentage rate (APR) alludes to the yearly interest generated by a sum that is charged to…
Q: 1. The price for widgets rises from 4 to 5. As a result, the demand for widgets drops from 20 to 5.…
A: Price elasticity of demand for a good is estimated to know about the changes in the quantity…
Q: Which of the following is correct? a) Total Fixed Cost = Total Cost + Total Variable Cost b)…
A: Total cost is consist of two factors such as fixed cost and variable cost, i.e. Total cost = fixed…
Q: It is October and Sam has won a price of $9000. She has the following two options: • Option A:…
A: It is October and Sam has won a price of $9000. She has 2 options:Option A: receiving the entire…
Q: For the cost function 125x + 375 C(x) = x+7 where C is in dollars and x is the number produced in…
A: Here we are given the cost function. A cost function is the function of output, and it gives the…
Q: What is the difference between the natural rate of unemployment vs. the full employment rate of…
A: Natural rate of unemployment is defined as the unemployment rate where there is no inflation at the…
Q: YVETTE AND AARON DEPOSITED A JOINT ACCOUNT AN AMOUNT OF P1000 AT BPI AT 5% INTEREST COMPOUNDED…
A: given that, Principal (P)= $1000 Annual Rate (R)= 5% Time (t in years)= 8 compounded annually
Q: table below shows cost data for producing different amounts of saucepans. Suppo the information in…
A: The marginal revenue is the change in the total revenue when the one additional unit of output is…
Q: Antitrust enforcement of vertical relationships is generally focused on Question 2 options:…
A: The antitrust enforcement of vertical dating usually centered on decreasing the competion among the…
Q: 1. Find the semi-annual payment of a P15,000 debt to be amortized by 5 equal payment at the end of…
A: Since you have posted multiple questions, as per the guidelines we can solve only first question per…
Q: Draw the short run marginal cost curve for a firm with eventually diminishing marginal product.…
A: The marginal cost indicates the increase in total cost due to additional unit of output being…
Q: Imagine a consumer - worker who has a total time endowment of 100 hours per week. He/She can use…
A: The worker divides his times between the leisure and work. The wage rate encourages more supply…
Q: A men lends Php 6000 at 5% simple interest for 4 years. At the end of this period he invest the…
A: given that, Principal (P)= Php 6000 Rate (R)=5 % time(t) period for the first case is 4 years and…
Q: Should an MNC alter its ethical standards to accommodate a host country in order to successfully…
A: Multinational corporations are those firms which have their operations spread in more than one…
Q: In classical measurement, what do numbers represent? What do they mean?
A: A classical test method for evaluating the validity and reliability of a scale based on its items is…
Q: The key difference(s) between monopoly and oligopoly is
A: A market arrangement known as a monopoly has a single seller controlling the whole market. The…
Q: debt of P 10,000 with interest at the rate of 20% compounded semi-annually is to be amortized by 5…
A: Size of payment The size of the payment is computed in the amortization of the loan. It is computed…
Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000. Cash…
A: We have, Cash flow time 5 is $ 5000 Annual growth in cash flow ia 7% Number in cash flows is 9…
Q: Capital Labor L K (# of assembly workers) (# of lines) 1 1 1 1 1 1 0 1 2 3 4 5 Output Q (# of towels…
A:
Q: Specialization: 1) leads to greater self-sufficiency. 2) can lead to an increase in overall…
A: In economics, specialization refers to the situation when an individual gains additional skill or…
Q: In the country of Solow, the production function is this: Y = √K. (Output = square root of capital).…
A: Given as Rate of depriciation = 10% = 0.1 Depreciation function (D) = dk now, let Investment (I) =…
Q: Graphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit,…
A: Given A monopoly sells 250 units at price $60 per unit. At the 250th unit, MR=40, MC=50, ATC=60 We…
Q: 1. Suppose Acme Clothing is operating with 20 units of capital and producing 9 units of output at an…
A:
Q: You read in the Bryan-College Station Eagle that Texas A&M expects the price of tuition to rise by…
A: Elasticity of demand means the degree to which demand respond with a change in an economic factor…
Q: what should a seller what to know about the irps of his or her customers? How could the seller use…
A: A theory about the relationship between the current spot exchange rate and the anticipated spot rate…
Q: An engineer was promised to have an initial salary of 42500 and will then be increased by P500 per…
A:
Q: What are the advantages and disadvantages of special interest groups within the democratic system of…
A: The various measures taken by the government to control and regulate the private sector in order to…
Q: A bank pays one percent interest on savings account four times a year. What is the actual annual…
A: Interest rate is charged by the lender for using its money.
Q: Imagine a consumer - worker who has a total time endowment of T=100 hours per week. He/She can use…
A: Utility Maximization depends on the distribution of available hours between the work and leisure.…
Q: Question 9 Match each phase of the business cycle to its correct definition. Column A 1. 2. 3. 4. -…
A: Business cycle refers to ups and downs of economic activities in the country.
Q: Consider the average annual growth rate 5.93% of 2000-2005, and forecast the population in Abu Dhabi…
A: Year Abu Dabi Nationals Non-nationals Total 1980 90792 361056 451848 1985 135982 430054…
Q: If the price of a good falls, then Multiple Choice O demand for that good will fall. demand for that…
A: Demand depicts the inverse relationship between price and quantity demanded, keeping other factors…
Q: 1. Describe how, if at all, each of the following developments affects the break-even and actual…
A: A break-even investment can be identified graphically or using straightforward mathematics; it…
Q: You want to purchase a new car in 5 years and expect the car to cost $18,000. Your bank offers a…
A: In the realm of economics, money stored in a bank or any financial institution is referred to as a…
Q: 7. Assume a normally shaped demand curve. The government wishes to help people onto the housing…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: In traveling about a city, most people use either subway or bus. Suppose all subway fares were…
A: It has been noticed that when a commodity becomes more expensive, people's willingness to buy it…
Q: Suppose that before tax was imposed 400 million gallons of gasoline was supplied at $3.00 per…
A: “Since you have asked multiple questions, we will solve the first question for you. If youwant any…
Q: If the interest rate is 10%, the present value of $100 to be paid next year is
A: Present value is the value of a sum of money of some future period. The formula for the same is:…
Q: 5. Wireless high-speed internet in provided for free at an airport in a smaller city (like…
A: Kindes of goods: In public economics, one studies the various kinds of goods in the economy. The…
Q: In your own words, describe what the difference is between an error term and a residual. How does…
A: When a statistical or mathematical model fails to accurately capture the real connection between the…
Q: An advertising campaign will cost $305,000 for planning and $50,000 in each of the next six years.…
A: For an investment to be economically desirable the Internal rate of return of the cash flows should…
Q: A man borrowed some money from a private at 5 % simple interest per annum. He landed this money to…
A: The simple interest refers to an interest paid over a defined period is a fixed percentage of the…
Q: Draw the short run marginal cost curve for a firm with eventually diminishing marginal product.…
A: Since you have posted multiple questions, as per the guidelines we can solve only one question per…
Step by step
Solved in 2 steps
- The government of Australia has embarked on various policies in order to reduce the severity of COVID 19 on the economy. Has COVID 19 caused economic expansion or a recession? Explain your answer using at least two economic effects on the economy of AustraliaEconomic On April 27, 2023, the U.S. Bureau of Economic Analysis (BEA) released the data on GDP growth for the US economy for the first quarter of 2023 and revealed that the economy grew sluggishly by only 1.1 percent. Based on this report, suppose the U.S. consumers and businesses start to become pessimistic about the direction of the economy and eventually cut consumer and business spending, analyze using the IS-LM and AD-AS frameworks the short and long-run effects of such a shock on prices, output, and real interest rate.Question #2. 13 On April 27, 2023, the U.S. Bureau of Economic Analysis (BEA) released the data on GDP growth for the US economy for the first quarter of 2023 and revealed that the economy grew sluggisly by only 1.1 percent. Based on this report, suppose the U.S. consumers and businesses start to become pessimistic about the direction of the economy and eventually cut consumer and business spending, analyze using the IS-LM and AD-AS frameworks the short and long-run h effects of such a shock on prices, output, and real interest rate. # 3 E $ 4 Q Search R 15 % 5 f6 E L 6 17 4+ lyje Y 18 7 90 * 19 Page of 2 9 O f 112
- In what year and quarter did U.S. real GDP first exceed its pre-recession level?Suppose the economy experiences a "supply shock" due to a fall in oil prices. As a result, the economy experiences a/an ___________in the price level and a/an _______in the level of output(GDP) Group of answer choices Decrease; decrease Increase; increase Decrease; increase Increase; decreasFrom 1/1/2020 to 7/1/2020, real GDP decreased but the GDP deflator stayed approximately the same (thus, treat it as the same number at the beginning of this period as it was at the end of this period). According to our aggregate supply/demand analysis, which of the following must have occurred over this time frame? (Use the graph to help you see if you can determine any shift(s).) Group of answer choices a) increase in Aggregate Demand, decrease in Aggregate Supply b) decrease in Aggregate Demand, decrease in Aggregate Supply c) increase in Aggregate Demand, increase in Aggregate Supply d) increase in Aggregate Demand, but no way to determine the direction of shift in Aggregate Supply e) decrease in Aggregate Demand, increase in Aggregate Supply
- According to the textbook definition, a recession occurs if ___ GDP decreases for ____ Question 35 options: A) real; two consecutive quarters B) nominal; two consecutive quarters C) real; one quarter D) nominal; one quarterUse the Aggregate supply and Aggregate Demand Model below to answer the questions that follow.Aggregate Supply and Aggregate Demand Model 1. Examine the influence of government expenditure on investment in a nation. Use Jot Inc. Ltd a multinational construction company in which you are the Chief Exec of the firm that that is highly diversified and recieves funds to construct highways and other government funded projects. Also, explain the factors that cause the Aggregate Demand curve to be downward sloping left to rightTopic 2. Discuss characteristics of an economy that helps itself correct from a recessionary gap.
- a) About Country A, what is your estimate of the country's marginal propensity to consume (MPC) based on the following information on its GDP (Y) and the components thereof (in billion dollars) for two past years? Show calculation. Year 1 Year 2 c) GDP C I 11200 8000 2200 12000 8500 2400 G 800 880 The next few parts are about Country B, whose government plans to cut taxes by $24 billion as a measure to fight the current recession. The marginal propensity to consume (MPC) in Country B is known to be 34. There will be no crowding-out effect. e) NX 200 220 b) What is the initial effect (in billion dollars) of the tax cut on Country B's aggregate demand? (The "initial effect" here refers to the effect on AD after only the first round of increased spending.) What is the total effect of the tax cut on aggregate demand? Explain why it is different from the initial effect. d) How does the total effect of this $24 billion tax cut compare to the total effect of a $24 billion increase in…Following a demand-side recession, what happens to full employment GDP (C+I+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?During a recession: potential GDP declines potential GDP increases real GDP declines O real GDP increases