Use brief language and diagrams (AD-AS model) to discuss the difference between Keynesian view and Neoclassic view on Macroeconomics

Q: Based on our understanding of the model presented in Chapter 4, we know with certainty that an…

A: A component of aggregate expenditure that represents the total spending on capital goods and…

Q: Vebco Water and Gas received a contract for a seawater desalination plant wherein the company…

A: Investment alludes to the most common way of designating assets, like cash, time, or exertion, into…

Q: Why study economics to be an informed citizen

A: A social science that examines how individuals, firms, governments, and societies make choices…

Q: How is a country's wealth related to other measures of well-being such as life expectancy and the…

A: A country's wealth refers to its economic prosperity and the abundance of resources and assets it…

Q: Every Friday night, Gustavo pays $49.99 to eat nothing but crab legs at the all-you-can-eat seafood…

A: Average Cost (AC): - it is the average value of total cost incurred on a specific unite of output.

Q: What type of variable is Log GDP per capita?

A: GDP per capita - Gross Domestic Product it is a measure of the economic total output of a country.…

Q: If we say that GDP = C +1+ G+ (X-M), then GDP has been measured using the O production method O…

A: Gross domestic product refers to the final market value of all the items and services produced in a…

Q: A) What is the size of the labor force? B) What is the official unemployment rate (U3) (Number-NOT…

A: (According to Bartleby guidelines we are allowed to answer only 1 question at a time, it is…

Q: Suppose that the T-account for First National Bank is as follows:           Assets Liabilities…

A: The required reserve ratio of a bank depicts the minimum amount of deposits a bank must keep as…

Q: Assume that aggregate demand is unaffected by the oil price drop. After the economy has fully…

A: Here the supply curve is the curve depicting how much production of manufacturing goods is being…

Q: Jane is lazy person while John is hard-working person. Use relevant graphs to show that Jane  has…

A: A thriving workforce is required for the economy to prosper. It creates job possibilities, boosts…

Q: The graph below depicts the market for blueberries in the country of Roni. Price 2.4 2.0 1.6 1.2 0.8…

A: A price floor refers to a restriction or regulation set by the government, which establishes a…

Q: Can you explain the ( Compare the values ) part and how Q = 6.5 is profit maximized?

A: In order to find the find the profit maximized we use the first derivative test , that gives us…

Q: The profit of a firm is described by the following function: f(Q) = -4Q^3 +48Q^2 - 117Q - 100 where…

A: Pricing choices in economics involve choosing the appropriate price for a commodity or service…

Q: Year Government Purchases Government Taxes Real GDP 1 400 247 5,812 2 434 203 5,898…

A: The term "public debt" refers to a government's accumulated borrowing to pay budget shortfalls and…

Q: (1) an increase in the saving rate and (2) an increase in technology on output per person during the…

A: The Solow growth model explains the growth rate of economy over the long run. It explains why some…

Q: In equilibrium U′(Yt)qe t = δEt[U′(Yt+1)(qe t+1 + ˜ Yt+1)] holds. Assume the following: .…

A: Dynamic stochastic general equilibrium (DSGE) is a framework used in…

Q: ssume the government of an economy applies expansionary fiscal policy to stimulate aggregate demand.…

A: The fiscal policy refers to the policy which is related to change in taxes and expenditure of…

Q: Which of the following is an assumption on which time series regression is based a. A time series…

A: Time series regression is a statistical technique used to predict future responses based on the…

Q: How would you assess the economic benefits vs the social and environmental costs?

A: This question is asking about how to conduct a cost-benefit analysis of a potential coal-fired power…

Q: Expected growth in real GDP = -2%; inflation = 1%

A: Here, the GDP implies the value of all the commodities and services provided in the economy by the…

Q: globalisation for South Africa by refering to the advantages and disadvantages

A: Globalization is the most common way of expanding interconnectedness and relationship of the world's…

Q: What are the two types of inflation and how are they different?

A: The 2 types of inflation normally mentioned are demand-pull inflation and value-push inflation.…

Q: hat do you understand by the development model of Rostow? Give answer in short details onl

A: Development can be described as a multidimensional process that includes social, economic,…

Q: What is the equivalent AW of the below project? Given that i is 5% Initial Cost $1,000 Salvage value…

A: Initial cost =$1000Operating cost =$10per yearMaintenance cost =$30 every 5 years.Life =…

Q: Explain the cobweb model of labor market equilibrium. What are the two key assumptions of this…

A: Labor market equilibrium describes the state in which the quantity supplied of labor by workers…

Q: Suppose the market demand for a good takes the form: 2=300-P D and the market supply takes the form:…

A: Market demand: the quantity of a good or service that consumers are willing and able to purchase at…

Q: The owner of the Jets is going to offer a contract to a free agent player, Hapoleon. If signed,…

A: The optimal wage is the economic wage level that maximizes an individual or a group's utility in the…

Q: Find all (pure strategy) Nash equilibria in the kidnapping game: Vivica (kin of victim) Guy…

A: Nash equilibrium is the point where best response of both players intersect

Q: If demand curver is given by Qd=400-8P and industry is dominaned by large firms with marginal cost…

A: Pricing decisions in economics entail determining the best price for a product or service based on…

Q: What is the short-run effect on output and the price level of the Fed pursuing expansionary monetary…

A: Monetary policy is a macroeconomic policy by the Central Bank. These are a set of tools which…

Q: Consider the following daily production data for Davis Golf Balls, Inc. Davis Golf Balls, Inc. sells…

A: In a competitive market, The firm will maximize its profit by hiring the worker where the value of…

Q: Which of the following is correct for a single-price monopoly? . The firm can determine the quantity…

A: The Monopoly refers to the market where only single seller exists in the market. The single seller…

Q: If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket, A. Tom gains 2…

A: In the context of trade, specialization means concentrating on generating goods or services where…

Q: The payoff matrix supplied shows outcomes of various strategies that two firms might follow in…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: Show how each of the following would affect the U.S. balance of payments. Include a description of…

A: The balance of payments (BOP) is the method countries use to monitor all international monetary…

Q: Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the…

A: A price index is a statistical measure that tracks changes in the average prices of a basket of…

Q: 12 Joe's Island's production possibilities are:

A: Opportunity cost is the value of the next best alternative that is forgone when making a choice. In…

Q: Military and uniformed personnel (MUP) pension reform is a hot topic in the Philippines now. There's…

A: A well-functioning compensation program could assist with propelling the economy by supplying…

Q: Use the graph below to calculate Peter’s opportunity cost of an hour of tennis when he increases the…

A: Making economic choices has significance due to the fact that it involves executing judgments using…

Q: General Cereals is using a regression model to estimate the demand for Tweetie Sweeties, a…

A: Elasticity of demand is a measure of how sensitive the quantity demanded of a good or service is to…

Q: You deposit a $1,000 scholarship check in the bank. If the required reserve ratio is 10 percent,…

A: When you deposit a $1,000 scholarship check in the bank and the required reserve ratio is 10…

Q: You are a manager at a firm like Whirlpool in a market with other manufacturers of refrigerators.…

A: Equilibrium in a market refers to a state where the quantity of a product demanded by consumers…

Q: b1. Show the expected social losses from having a monopoly. Draw in any extra lines you need to show…

A: In the realm of market structures, a monopoly denotes a situation where a…

Q: Differentiate between foreign exchange and the foreign exchange rate.

A: Foreign exchange refers to the process of converting one currency into another currency for various…

Q: the next three questions refer to the following scenario and the accompanying table:   Davis loves…

A: To determine how many pears Davis would buy each week to maximize his satisfaction, we need to…

Q: D Refer to Figure 1 above. In class, we assumed that firm revenue was constant over N and solved for…

A: Demand and supply are fundamental concepts in economics that describe the interaction between buyers…

Q: Locate a news article that describes an event that would cause a shift in the Aggregate Demand…

A: In macroeconomics, aggregate demand (AD) is the total demand for final goods and services in an…

Q: With the aid of a diagram explain credit rationing

A: Credit describes the provision of funds or resources providing  by a lender to a borrower, with the…

Q: Figure - Production-Possibilities Curve Office Buildings D Housing It is not possible for society to…

A: PPF is the production possibility frontier. PPF is defined as the production possibility of two…

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.