If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ________, and output will decrease; increase increase; decrease increase; increase decrease; decrease

Q: If planned aggregate spending in an economy can be written as PAE = 15,000 + 0.6Y − 20,000r,…

A: Aggregate demand is the sum of consumption, investment, government spending and net export.  Planned…

Q: 3. A monopolist faces demand P=60−5q, has constant marginal costs of 15, and has zero fixed costs.…

A: Here as the monopolist is able to price discriminate perfectly and hence he would be able to charge…

Q: Cite an example of how governments can affect economic growth.

A: Economic growth is the process through which the final commodities and services produced by the…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and…

A: The break-even point in economics, business and specifically cost accounting is the point at which…

Q: Referring to the graph below: a. Is this firm operating in the long run? How do you know? b. What…

A: In perfect competition,  In long run , a firm will produce where P = MR = MC = ATC  So, There will…

Q: Define the term scarcity in context of economics.   Pls explain in detail.

A: A basic economics paradox—the contradiction between limited resources and presumably boundless…

Q: Consider a competitive market in which the PM = 180 - 2q and the SMC = q. In this market, however,…

A: Consumption is an activity in which institutional units use up goods or services; consumption can be…

Q: The covariance by itself is not very useful because ___________.

A: Covariance is a measure that depicts the relationship of two variables when they changes. There is…

Q: If wages and prices adjust slowly, we would expect expansionary monetary policy to be less likely to…

A: In an economy, adjustment in prices and wages will lead to affect the short-run and long-run economy…

Q: This is the payoff matrix from Civil War, which we discussed in class. Which choices should Iron Man…

A: Here captain America is player 1 and Iron man is the player 2 . Now when the player 1 chooses fight…

Q: What is the solution to question 6? I really need help with that one.

A: The amount of gas the buyers would be willing to purchase would drop if it turned out that 50% of…

Q: Consider a simultaneous game where player A has a dominant strategy and player B has two strategies…

A: Dominant strategy is the strategy that yields highest payoff and the strategy doesn't change with…

Q: Describe the COUNTER ARGUMENTS to the national security, declining industries, and infant industry…

A: The argument that a country should protect domestic industries till they become developed and stable…

Q: Two prospecting partners, Curtin and Dobbs, find an area containing 40 ounces of gold. For each day…

A: Curtin and Dobbs are two prospecting partners. Both alternatively serve as watchmen at night. Curtin…

Q: Explain the difference between a pegged exchange rate system and a floating exchange rate system.…

A: A nominal exchange rate that has been firmly established by the monetary authority concerning a…

Q: Calua is an economy in which people live for three periods. They receive an endowment in only one…

A: Future value estimates the value of an asset on a specified future date based on the current…

Q: Aria is an economy with constant population. Each person is endowed with a certain amount of goods…

A: A feasible set is a collection of allocations that adheres to every restriction in an economic…

Q: In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and…

A: Multiplier is given by the following formula :-  Multiplier = 1/r  r is the reserve ratio Reserves…

Q: The payoff matrix below shows the payoffs for Stefan and Imani in a two strategy game. In the mixed…

A: Given information: There are two players, i.e., Stefan and Imani.  Stefan plays two strategies,…

Q: The difference between economic profit and accounting profit is equal to:   zero   implicit and…

A: Profit is the benefit incurred in trade activities. The difference between cost and the income…

Q: The economy of Carlsberg is presently in equilibrium, but is suffering a recession as depicted in…

A: Expansionary monetary policy seeks to boost aggregate demand and economic growth.Expansionary…

Q: 6.6) Which of the following statements about the open-economy IS curve is correct (a) It is steeper…

A: The measure that depicts the output level and level of rates of interest at which total saving in…

Q: Assume that a country produces wine and cheese with Leontief technology that uses labour and land as…

A: Leontief production function represents technology in which input are used in together in fixed…

Q: A utility company is considering the following plans to provide a certain service required by resent…

A: Given information Plan R Initial investment=500000 Salvage value=20% of 500000 Annual maintenance…

Q: An asset that is book-depreciated over a 5-year period by the straight line method has B3 = $62,000…

A: Given  Book value at the end of 3 years B3=$62000 Depreciation charge per year (D)=$26000…

Q: entify the benefits outsourcing brings to both consumers and producers in the domestic market over…

A: Outsourcing is a business practice in which services or job functions are hired out to a 3rd party…

Q: Which of the following constitute the Federal Reserve's dual mandate? Question 14 options:…

A: Federal reserve have many goals while dealing in the economy. Here we find that mainly it have two…

Q: Domestic producers gain P/$ 25 15 10 because of the tariff. O a $50,000 O b. $75.000 O c. $150,000…

A: A tariff is a kind of tax or duty imposed by the government on imports or exports of goods in order…

Q: 12.   In the long run, in monopoly there can be: Economic profits or losses No economic profits…

A: Monopoly is a market structure where there is only a single seller of the good in the market with no…

Q: A consumer is trying to decide between purchasing one smoothie or one cappuccino. They get 30 utils…

A: In economics, the term "utility" refers  to define the value or worth of a product or service. More…

Q: $70 $45 FIRM IN A CARTEL 80 98 MC ATC The graph above shows a firm which is part of a cartel.…

A: A cartel is an aggrement to restrict the industry supply and charge a higher price to gain the…

Q: In the following games, all payoffs are listed with the row player's payoffs first and the column…

A: A mixed strategy of a player is the probability distribution of randomly selecting a strategy among…

Q: A company is considering the purchase of either machine A or machine B. And the interest rate is…

A: Present worth analysis for cost alternative: In a present worth analysis of cost alternatives, the…

Q: Four years after the issue of a $10,000, 9.9% coupon, 20-year bond, the rate of return required in…

A: Capital gain or loss refers to a method which shows the relationship between capital gain and…

Q: Seatwork on Trade Policy Given: 1. Y=C+I+G+X-M 2. C=b+cYd (Consumption function) 3. Ts+tY (tax…

A: Equilibrium level of income is the point of level which expresses the situation where aggregate…

Q: Answer the following as indicated. (Format: problem, then, solution) 2. Elena wanted to invest in a…

A: Simple interest is the cost of borrowing money, and it basically does not take into account the…

Q: II. True or false with justification, use graphical argument as appropriate. 1. In a perfectly…

A: Perfect competition is a type of market condition in which there are large number of buyers and…

Q: Select the correct answer from the terms provided to complete the sentences below. There are more…

A: Let X follows a uniform distribution which can take values within the interval [a,b]And we have:…

Q: A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from (0, 0) to…

A: The price floor is the maximum price that a producer can charge for the commodity.  The condition of…

Q: A recent study demonstrated that when states pass laws mandating that health insurance cover…

A: In economics, a scenario where one party can take risks because they are aware that the terms of the…

Q: In one day, Dahyun can produce 20 cakes or 40 brownies, and Sana can produce 25 cakes or 125…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: 15. Show that the sequence {a} is a solution of the recur- rence relation a,,=an-1 + 2an-2 +2n- 9 if…

A: an = 7.2n - n + 2

Q: Hank is confused as to what banks do. He reads that banks “transform assets,” but he has no idea…

A: Hence asset transformation is a process through which banks transforms bank liabilities (deposits)…

Q: Only Keynesian economics argues for active macroeconomic policy.    True  False

A: The functionality of the economy as a whole is a concern of macroeconomic policy.Macroeconomic…

Q: Two risk neutral players, A and B, simultaneously choose bets on the outcome of a fair coin toss.…

A: Pure strategy Nash equilibrium is one kind of Nash equilibrium which is played by the players with…

Q: the raffle? Jaime has never won a raffle before, so she is likely to win this time. The raffle has a…

A: A utility function of a rational consumer describes the willingness to consume a particular…

Q: QUESTION 22 In a fractional reserve system, banks are able to create money and wealth  True…

A: In a fractional reserve banking system, commercial banks keep a fraction of deposits as reserves and…

Q: According to the Phillips curve, a recession will cause Select one: O a. The inflation rate to…

A: Phillips curve defines the stable and inverse relationship between the unemployment and the…