Suppose that the following C, I, G, and NX is given by: C = 100 + 0.8OY G = 100 | = 200 NX = 300 - 0.05Y And suppose also that this leads to an AD & AS given by: AD: Y = 10,000 - 3p AS: Y = 2p
Q: If a consumer has rational, monotonic, and convex preferences, which of the following is true concer...
A: A change in the price of a product leads to a change in demand for that product. This is called the ...
Q: Consider the stage game below. Can we get (A,Y) played each date in an infinitely repeated game? Exp...
A: The handwritten solution is attached below:
Q: It is impossible that a country runs a negative trade balance over decades. True False
A: Balance of trade is a concept through which a country can always keep track of all its imports and e...
Q: A group of 10 people have the following annual incomes: $24, 000, $18, 000, $50, 000, $100, 000, $12...
A: Solution: Writing the given incomes in increasing order. First quintile 10000 12000 Second quin...
Q: If a firm's revenues do not cover its average variable costs, then that firm has reached its price t...
A: The firm earns positive profit if revenues exceed total cost. Firm incurs loss if revenue is less th...
Q: Microeconomic Question (c) Use well labelled diagrams to show how production isoquant can be used t...
A: The Law of Returns to scale states that when all the factors of production are increased in the same...
Q: According to Keynes’ Law... A) The total demand for products determine the level of gross domestic ...
A: According to Keynes’ Law.. The correct option is: option (A) The total demand for products determine...
Q: If the pension benefits for a person is determined by the contributions into the plan and their earn...
A: Answer:- (a) Defined contribution plan.
Q: Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at ...
A: The correct answer is given in the second step.
Q: In what ways do the classical and administrative models of decision-making help managers appreciate ...
A:
Q: Did quantitative easing after recent economic crises cause more harm than good?
A: Quantitative easing (QE) is a policy instrument used only by central banks to boost economic activit...
Q: You are paying a series of five constant-dollar (or real-dollar) uniform payments of $2,295.9 beginn...
A: Given that, Uniform payment of $2295.9 The inflation rate is 32.99% The market interest rate is also...
Q: Which of the following is part of GDP for the country mentioned O In the US the amount spent by the ...
A: Gross Domestic Product (GDP): Gross domestic product (GDP) is the total monetary or market value of ...
Q: What does the Consumer Price Index (CPI) measure? Be specific about what the categories of goods and...
A: Macroeconomics is an important aspect for a country. Aggregate demand and aggregate supply are compo...
Q: Drop box one options ( costs of producing or market value of or wholesale cost of) Drop box two (fin...
A: The following boxes can be completed based on the different set of options is as follows :
Q: The the nominal interest rate, the is the quantity of money demanded. O a. more variable; smaller O ...
A: The money demand is a function of the price level, income level, and nominal interest rate. The mone...
Q: Paul consumes only books and DVDS. At his current consumption bundle, his marginal utility from DVDS...
A: Answer: Given, Marginal utility of book MUB=2Marginal utility of DVD MUD=13PB=$1PD=$12 The equilibri...
Q: A monopoly firm produces men's collared dress shirts. Its brand is strong and differentiated. The co...
A: Those with less elastic demand pay a higher price for the shirts. Option d is the right answer.Becau...
Q: If you invest $2000 at 12% annual interest rate, compounded weekly, how much would you have after 5 ...
A: Given, P = Principal Amount = $2000 r = Interest Rate = 12% = 0.12 t = Time = 5 years Compounded Per...
Q: Problem 6 Consider the following diagram that shows the effects of a decrease in the price of beer o...
A: Since you have asked a multi-part question and according to the policy we can only solve the first 3...
Q: The demand for money increases and the demand for money curve shifts rightward if O a. the price lev...
A: Demand curve of money shows the amount of money demanded at the particular interest rate whereas, th...
Q: The following table states pre-Covid round-trip airfares (for a two-week trip in February, booked w...
A: Price discrimination refers to when the firm charges different prices to different customers for the...
Q: Select an industry that belongs to any one of the four market structures – perfect competition, mono...
A: The fuel industry has the market structure of an oligopoly. There are a couple of predominant firms...
Q: Which of the following would be a significant cause of income inequality in the United States?
A: To find : Cause of income inequality.
Q: An empirical fact is that a country with more openness to trade than another also has higher GDP. ...
A: Gross domestic product (GDP): It is the total monetary or market value of all the finished goods and...
Q: Which of the following would lead to a decrease in the equilibrium interest rate? O a. Decrease the ...
A: Demand curve of money shows the amount of money demanded at the particular interest rate whereas, th...
Q: Which one of the following statements is true?
A: GIVEN one of the following statements is true Is
Q: Greenmail Raider Do not Buy buy Management Raider 10 Management 10 Greenmail No greenmail Raider 15 ...
A: Backward induction is used by the Raider to pick takeover at the final decision node.
Q: 48. Find the present worth of perpetuity of P10,000 semi annually with an interest rate of 10% quart...
A: The worth is the ratio of annuity to semiannual. It means as the annuity is positively related to th...
Q: How do the purpose and structure of the executive and legislative branches of governments affect the...
A: To find : Purpose and structure of executive and legislature branches of government affects power of...
Q: In early 2019, the Powerball lottery was advertised as having a payoff of $750,000,000. The winner w...
A: Present value (PV) is the current value of a future amount of cash or stream of incomes given a pred...
Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180...
A: Solution: (a)Formula used (i) Total cost (TC) = Total fixed cost (TFC)+ Total variable cost (TVC) (i...
Q: 7. Good X is produced in a competitive market using input A. Explain what would happen to the supply...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...
Q: In the steady state of Solow's exogenous growth model, an increase in the savings rate ... A. increa...
A: The Solow Growth exogenous model of economic growth implies a change in the level of output due to a...
Q: Your mother's annual salary back in 2000, the base year, was 180.000 dirhams. Iit in 2021, her annua...
A: CPI in year 2021=Annual Salary in real terms in year 2021Annual salary in year 2000×100 ...
Q: The assets of a commercial bank may include all of the following except: Question 28 options: ...
A: The depository institutions are those financial institutions which accept monetary deposits from con...
Q: Imagine you are the mayor of a town and you are trying to decide if you should pay for a fireworks s...
A: Answer:- (d) The town's citizens were free-riders.
Q: Assume the following supply and demand curves: Q,1)=100 – w(1) Q,(1) =-w(t-1) where Q„(t)= the quant...
A: The equilibrium is set up where the demand and supply are equal. The current supply here depends on ...
Q: The income elasticity of Abigail’s demand for CDs is 0.75. For Abigail Cds are a normal good or an i...
A: In economics, income elasticity of demand is used to explore the sensitivity of the consumer's deman...
Q: The MC curve cuts the AVC and ATC curves at
A: To find : Marginal curve where cuts average curve
Q: Define and give examples of the macro- and micropolitics of public budgeting.
A: To find : Example of public budgeting.
Q: Need urgently What might the impact of a flat world be on your standard of living?
A: The impacts of flat world on the standard of living are as follows :-
Q: If Money Supply is $11,000, real GDP is 31,500, and velocity of money is 2.6, then how much is price...
A: The price level (P) can be calculated by substituting the values of money supply (M), the velocity o...
Q: he equations below represent the demand and supply curves for annual gym memberships in a certain ci...
A: Given Demand equation: qD=500-2p ... (1) Supply equation: qs=0.5p-50 .....(2)
Q: Briefly define and graphically illustrate the law of diminishing marginal rate of technical substitu...
A:
Q: In the Keynesian theory of liquidity preference money supply is related to interest rates ...
A: Keynesian theory of liquidity preferences: According to Keynes, the money demand and money supply ...
Q: Cyclical unemployment 1) has a different explanation than does the natural rate of unemployment. 2) ...
A: All of the above Option 4th is corrrect. Option 1st is correct because e cyclical unemployment rate ...
Q: The table below shows the share of income going to each quintile of the income distribution for a na...
A: A Lorenz curve was established by American economist Max Lorenz in 1905 as a graphical representatio...
Q: The buyer of a set of computer was offered the options of paying P 35,000.00 cash or P 40,000.00 at ...
A: Simple interest method of interest is the method by which interest is charged on the principal amoun...
Q: According to current research, which of the following can rationalize the increase in female labor f...
A: From past few decades, it can be seen that women participation in the labor force has increased espe...
Step by step
Solved in 2 steps
- the following macro mo det consumptron : c • C' +cYq and Ya = do posable income Desine d Investment: = I' +jY Government Expenditure s. G =G'+gy Exports = EX : X' IM =F' Imports Taxes : T:T't tY a) what is the equation for y" for this economy? b) Derive for this each of the following multipliers economy. ) Ke' 5) Kpi 2) k 6) Kx' 3) KG' 7) Kg8 "BB 4) Kpi 2 why Might one that the is argue 1 probably a 2 vavia b le g number ? hegatheAssume: Y= C + I + G + NX C = 400 + (0.8)YD Io = 200 G = 300 + (0.1)(Y* - Y) YD = Y - TA + TR NXo = - 40 TA = (0.25)Y TRo = 50 Assume the equation for net exports changes from NXo= - 40 to NX1 = - 40 - mY. How would this affect expenditure multiplier, if we assume that 0 < m < 1?The current state in the economy are as follows; Autonomous Consumption: 9000, Marginal Propensity to Consume: 0.4, Investment: 10000, Government Spending: 30000, Net Exports: 5000, Income Tax rate: 25%. The government wishes to conduct an injection into the economy to achieve a 45000 increase in national income. Calculated the current equilibrium income in the economy The government increases spending by 30000. Does this achieve the desired increase of 45000? How much should the government increase its spending to achieve the 45000 increase in national income (to the nearest whole number)? (Hint: consider the what the multiplier in this economy is)
- Given the following consumption function, C = 400 + 0.75YD,where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000Choose corrcct optiona) Aactual output is less than potential outputb) actual output is zeroc) actual output is equal to potential outputd) actual output is higher than potential outputstlon 16 Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 2 billion, and the marginal propensity to consume on Troll Island is equal to 0.6. What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5. %24 billionThe cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official has said. Assume the government of Australia Department of Foreign Affairs and Trade provided a grant of USD 5.8 billion. Also assume that despite the hardships the Philippine families experienced, 15% was the beneficiary savings from the Australian grant. Further, assume all other factors remain constant.a. Calculate the total effect of the spending multiplier of the Australian government grant on the Philippine economy GDP growth. b. Examine the overall multiplier effect of the USD5.8 billion grant on the Philippine economy. Answer asap n correctly with proper typed explanation
- Suppose you are given the following information for an economy without government spending, exports, or imports. Cis desired consumption, Iis desired investment, and Y is inoome. Cand i are given by C=400 +06Y 1-300 a. What is the equaion for the aggregate expendture (AE) function? (Round your response for the intercept tem to the nearest whole number and for the siope tem to one decimal place) AE CYC=150+0,75Yd, T=20+0,2Y, I=100, G=200, Tr=60 M=20+0,10Y X=70 A) What is the equilibrium national income? B) What is the transfer payment multiplier?YAS 1548 + 19P - 12Poil YAD = 412 – 33P+ 26G %3D Suppose initially, the Poil = $86 per barrel and government spending is equal to $780. Part (a): Calculate equilibrium GDP and the price level. Part (b): Determine the magnitude of the simple multiplier if oil prices exogenously rise by $1. Part (c): Determine the magnitude of the simple multiplier if government spending exogenously increases by $1.
- Inventories typically increase starting at the beginningof recessions, and begin to decline near the end ofrecessions. What does this say about the relationshipbetween planned spending and aggregate output overthe business cycle?| Assume in country Y, the average marginal propensity to save is 0.2. When the aggregate income is zero, consum- ers spend 50 to consume. Derive the saving function and consumption function for this country. What happens to consumption when the propensity to save decreases to 0.1? Explain your answer and show this on the graph.Assume you have the following model of the expenditure sector:AD = C + I + G + NX C = Co + cYD YD = Y - TA + TR TA = TAo TR = TRo I = Io G = Go NX = NXo a. If a change in income by ∆Y = - 800 leads to a change in savings by ∆S = - 160, what is the size of the expenditure multiplier? c. If a change in exports by NX = - 200 is accompanied by a change in consumption by ∆C = - 800, what is the size of the expenditure multiplier?
