How much more (or less) output will the average American have next year if the $20 trillion GDP grows (or contracts) by: Instructions: If the economy contracts be sure to include a negative sign (-) in front of your answer. Assume a population of 340 million. a. -2 percent? b. 0.5 percent? c. 3 percent? 000
Q: 12.) Your company is environmentally conscious and is looking at two heating options for a new…
A: The minimum acceptable rate of return, or MARR, is analysed to determine whether a project is…
Q: Is Harry spends his weekly income M > 0 on two commodities, food (X) and rental videos (Y) His…
A: A good is said to be inferior if the demand decrease as income increase. For inferior goods, the…
Q: The Compagnie Naturelle sells mounted butterflies, using butterfly bait it buys from another firm…
A: The value-added method is also known as the production method or output method, and its primary…
Q: Which of the following instruments is NOT used by the Federal Reserve to change the money supply?…
A: Monetary policy is the use of monetary tools to change the money supply in an economy. Fiscal…
Q: In a market with a Duopoly, if Market Demand is P=300-Q find the Cournot reaction curves and the…
A: A duopoly is when two firms jointly control all or nearly all of the typical market for a particular…
Q: Engr. Gundran wishes his son to receive 10,813 10 years from now. What amount should he invest if it…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: The Fed Group of answer choices issues deposits to the public. lends money to foreign governments.…
A: The FED is the primary organisation in charge of managing the nation's monetary policy through…
Q: If the following explanation (or expression) is correct, please indicate "True (T)". Or, if the…
A: A master transaction agreement refers to a contractual commitment agreed in a financial negotiation…
Q: The Terra Max truck currently being manufactured by Oshkosh Truck Co. is a driverless truck that is…
A: The present value of a sum of money in the future is its current value. A sum of money or a series…
Q: Suppose for Home: Ms=2874, Md/P=7335-70082*R, P=2 Suppose for Foreign:Ms=2306, Md/P=8082-79063*R,…
A: Home:Ms = 2874MdP = 7335 - 70082 × RP = 2Foreign:Ms* = 2306Md*P* = 8082 - 79063 × R*P* = 4
Q: Five fishermen live in a village and have no other employment or income earning possibilities…
A: The socially optimal quantity is such where marginal social revenue equals marginal social cost.
Q: Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on…
A: Given, Initial Cost : $375,000n=8 yearsSalvage Value : $27,000Increased before tax cashflow :…
Q: AARON Capital Investments Corporation was offered a business proposal. The details of the proposal…
A: Cash inflows are the cash flows that shows the benefit or income to the investor. Cash outflows are…
Q: d. Does this CES function have constant, increasing, or decreasing returns to scale?
A: Given Production function: q=fL,K=αLρ+βKργρ ....(1) Here α=β=0.5, γ=1 and ρ=2 A…
Q: 4. A semiconductor manufacturer has been ordered by the city to stop discharging untreated, acidic…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: How does the globalized economy affect U.S. isolationism?
A: Isolationism is a policy that a country adopts in order to separate it from various…
Q: A project capitalized for P 50,000 in depreciable assets will earn a uniform annual income of P…
A: Given, A project capitalized fro P50,000Annual income of P19,489 for 10 yearsMaintenance Cost :…
Q: You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two…
A: Public goods are are non-excludable and non-rivalrous as these will be available to all people…
Q: A man expects to receive P29,194 9 years from now. How much should he invests for three consecutive…
A: Given Future worth (9 years from now) =P29,194 Rate of interest (i)= 0.204 Suppose he invests x for…
Q: Given the following aggregate production function: Y = K0.25 (AL) 0.75, where technology A grows at…
A: Solow's growth model provides a stable level in the investment and savings market. The model…
Q: An investment has the following cash flow series where interest is 7%: End of Year 0 1 2 3 4 5 6 7 8…
A: Present value is the value of investment in today's dollar Future value is the value of investment…
Q: Some have used the national security argument to suggest that protectionist policies should be used…
A: Protectionist policies will be implemented with a main motive to enhance the economic activity…
Q: The following scenario examines markets for factors of production, which include land and labor,…
A: Land and labour are crucial production inputs. Depending on market variables such as supply and…
Q: At a price of $4.96 per pound, the supply for cherries is 16,253 pounds, and the demand is 10,364…
A: Equilibrium is where demand curve equals supply curve. Supply curve is upward sloping and hence…
Q: When property rights are well defined and inexpensive to enforce, poor borrowers are at no…
A: The property right is the legal ownership of assets or resources. The asset may be tangible or…
Q: Which of the following conditions is most likely essential for implementing a successful market-…
A: Pricing strategy is important in every business. Firms set pricing in such a way that the price…
Q: Each firm in the following table operates in a market of perfect competition and wants to maximize…
A: A perfectly competitive firm maximizes profit by producing output at a level where Price is equal to…
Q: Given the following information about possible investments and a MARR of 15% per year. Alternative A…
A: The Least Common Multiple of Lives approach refers to an approach for the evaluation of the capital…
Q: Long Run Equilibrium Consider a perfect competitive market with n identical firms. The cost…
A: Total Cost function : TC = q3- 4q2 + 74q Market Demand : P = 120 - Q Long run equilibrium for a…
Q: It is rational for someone who wants to sell a lemon to offer the buyer a money-back guarantee.…
A: The market for "lemons" theory was put forward by George A. Akerlof, discussing the problems created…
Q: capital per efficiency worker that result from the logic of the model. (e) Working with the…
A: Part (e) The Solow growth model is an alternative to Harrod-Domar (H-D) growth model. The Solow…
Q: What is meant by Explicit and Implicit costs?
A: The price of the inputs needed to produce a good are referred to as the cost of production. Both the…
Q: When the Fed raises the required reserve ratio, the banks' excess reserves ________ and the money…
A: Required reserve ratios are the one which the bank should kept it with themselves rather than…
Q: Skyline Furniture has a beginning inventory of 3 dining tables at a cost of $1,400 each. During the…
A: First In, First Out (FIFO) valuation method makes an assumption that the assets purchased or…
Q: Assume that the production function for competitive firm is given by F(L)=9L1/3, where L is the…
A: Given information: F(L) = 9L1/3 --------> Production function. Where L is the number of units of…
Q: For a monopolistic firm, If Marginal Cost is constant at 200, and the inverse demand function for…
A: The firm maximizes profit by producing quantity of output where marginal cost and marginal revenue…
Q: How much will Cyrus receive 5 years after his last deposit if he deposited 1,092 Php annually for 10…
A: depositing 1092Php amount yearly for 10 years is the example of annuity or an ordinary annuity.
Q: The elasticity of demand for a firm’s product is -2.5 and its advertising elasticity of demand is…
A: Profit maximization is the act of accomplishing the highest revenue or profit. The level of sales…
Q: Discuss economic and policy factors that explain why racial discrimination is more likely in law…
A: Introduction A labor market is a place where workers and employees interact with each other. In…
Q: Suppose in an economy PAE = 2500+.75Y-15000r. If target inflation is 2% and potential output: is…
A: Given information: PAE = 2500 + 0.75Y - 15000r Where PAE is planned aggregate expenditure Y is…
Q: Suppose Coca Cola and PepsiCo are producing a new, healthy version of Coke and Pepsi. They are…
A: The normal form of a game is a matrix representations of each player's strategies and corresponding…
Q: Question 3 - Please consider the data listed in this table. Sales Fixed Cost Variable Cost 3,00,000…
A: In order to breakeven the profits are zero. It is the point at which the total revenue is equal to…
Q: Using the example of Table 6-2, assume that the average cost has umped from $100 to$105. All other…
A: An average cost refers to per unit production cost. It will be calculated by dividing the total cost…
Q: Question 1 Consider the demand function. q= D(x) = 400e-0.2z a) Find the elasticity. E(x)= b) Find…
A: The Ed(elasticity) of demand shows the responsiveness of change in Q(quantity demand) to change in…
Q: What factors determine whether a particular economic issue can be adequately analyzed by using a…
A: A difficulty with the economy's ability to produce products and services to meet the economy's…
Q: Item Imports of goods and services Foreign investment in the United States Exports of goods and…
A: The balance of payments (BOP) is the method by which countries measure all of the international…
Q: For a European investor, what is the rate of return in euro on: “a ¥10,000 deposit in a Japanese…
A: Deposit Made in Yen = 10000 Interest rate in Yen = 12% Original Yen per Euro = 1.4 New Yen per Euro…
Q: What is the annual rate of interest if 235 is earned in 6 months on an investment of 12,691?
A: Annual percentage rate (APR) alludes to the yearly interest generated by a sum that is charged to…
Q: When you pay $10 for chicken you ordered for dinner, you are using money as a(n) Group of answer…
A: Money performs many functons like it is used as a store of value, investment good, unit of account…
Q: A monopolist faces two demand functions ?1 = 100 − ?1and ?2 = 50 − ?2 in two markets, and the…
A: a) Demand Function 1: P1=100-D1 Demand Function 2: P2=50-D2 Marginal Cost=10 a) In a two-part…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- 16)A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, if Mexico’s real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 4 percent per year, about how long will it take Mexico’s real GDP per person to reach the level that the United States was at in 2005? (Hint: How many times would Mexico’s 2005 real GDP per person have to double to reach the United States’ 2005 real GDP per person?) Instructions: Enter your answer as a whole number.For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such as Brazil? A low-income country such as Niger?2. Consider country A. Many people emigrated from country A to foreign countries. How would this shift the LRAS of country A: Leftward, Rightward or No shift?
- A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, if Mexico's real GDP per person is growing at 7 percent per year, it will take about 10 years ( =70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $ 11,000 per person, while it was about $ 44,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 5 percent per year, about how long will it take Mexico's real GDP per person to reach the level that the United States was at in 2005? (Hint: How many times would Mexico's 2005 real GDP per person have to double to reach the United States' 2005 real GDP per person?)A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. Thus, If Mexico's real GDP per person is growing at 7 percent per year, it will take about 10 years (= 70/7) to double. Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States.. Then comment on at least TWO other posts. Respond to the posts indicating your agreement or disagreement with their position and why. Feel free to bring in additional references to these reply posts. How has the U.S. economy been doing in recent years? Why do you think that is? Gather relevant economic statistics, such as the growth rate of real GDP, the unemployment rate, and the inflation rate, to support your case. (Hint: use the information we’ve covered and you’ve researched in the data project about GDP, business cycles, unemployment, and inflation to build your argument). Did any of the data from the project surprise you? Which data? Why? Does this data indicate a growing, stagnant or declining economy? What does this data tell you about the health of our economy? Why? Find a current news or journal article that describes our current economy and that supports your opinion. Summarize the article and indicate how it supports your opinion. Use sound economic reasoning.
- 1) Consider a country in which three goods (A, B, and C) are produced. The following table shows data for prices and quantities produced for two years. Quantities produced Unit prices Q1 Q2 P1 P2 Good A 51 45 10 14 Good B 23 54 10 6 Good C 6 12 10 8 Taking year 1 as the base year, what is the growth rate of real GDP between years 1 and 2? a. 0.75% b. 38.75% c. 14.75% d. 375.5% 2) Consider a country in which three goods (A, B, and C) are produced. The following table shows data for prices and quantities produced for two years. Quantities produced Unit prices Q1 Q2 P1 P2 Good A 51 45 10 14 Good B 23 54 10 6 Good C 6 12 10 8 Using year 1 as the base year, what is the value of the GDP deflator between years 1 and 2? Hint: Remember that the GDP deflator is a way of measuring the aggregate change in prices from one period to…With lockdowns currently imposed across Europe and North America until mid-April, even in the best-case scenario it will take at least until mid-June for market confidence to be restored in these economies. The implication is that nearly six million workers in Bangladesh’s formal sector – which is largely manufacturing – will be without steady work for an extended period.” a) Which part of the production function do you think the issue mentioned above will affect? Draw two diagrams to show Real GDP and LRAS is affected in the long run. The government should also consider an unconditional cash transfer program for an initial period of three months at a rate of $95 per month, which corresponds to the minimum wage for the formal sector in Bangladesh. This would cost the government roughly $14 billion, or 4% of GDP. While this sort of cash transfer program always suffers from targeting issues, Bangladesh enjoys a highly sophisticated mobile financial services network, which could…The tab;e below shows data for five economies of similar size. Real GDP is measured in billions of dollars. Assume that potential output for each economy is $340 billion. Economy A Economy B Economy C Economy D Economy E Real GDP 300 320 340 360 Rate of Wage Change -1.0% |-0.5% 0% 3.5% 6.0% 380 How is the adjustment asymmetry demonstrated when comparing Economy A to Economy E? A. The output gap is much larger in Economy E, so wages are changing at a faster rate. B. The size of the output gap is the same in Economies A and E, but wages are rising in A and falling in E. C. The size of the output gap is the same in Economies A and E but wages are falling more slowly in A than they are rising in E. D. The output gap is larger in Economy A, yet wages are changing more slowly. E. There is insufficient data with which to observe the adjustment asymmetry.
- 1. The curves showing the various quantities of goods and services that domestic consumers, businesses, the government, and foreign buyers collectively want to buy, at each price level, establish that: a. the higher the price level, the lower the real GDP these buyers will acquire; therefore, the lower the price level, the lower the actual production they buy b. the lower the price level, the greater the real GDP that these buyers will acquire; therefore, the higher the price level, the higher the actual output they buy c. the lower the price level, the greater the real GDP that these buyers will acquire; on the contrary, the higher the price level, the lower the real production they buy d. the higher the price level, the greater the real GDP that these buyers will acquire; therefore, the lower the price level, the lower the actual production they buy 2. The quantity of labor supplied increases when the real wage increases by: a. the increase in the labor force participation rate and…Country A and Country B happen to have the same GDP per capita. The standard of living is said to be higher in Country A than in Country B. This could be because ________. the workforce in Country A is relatively bigger productivity is relatively greater in Country A the same goods and services are relatively more costly in Country A high income disparity in Country B prevents its GDP per capita from giving a full picture of the well-being of its people12. Suppose an economy represented by the graph below started with K = 25, so it was in a steady state, but then disaster struck and most of the capital was destroyed. (Assume that no people were hurt so the labor force is the same size.) dK 25 K After the disaster would we expect the economy to grow or shrink? a. grow, I> dK b. grow, I dK d. shrink, I< dK