what is the difference between permanent income and transitory income increases related to the keynesian cross

Q: 2. Luchansky and Monks (2009) estimated that the U.S. demand function for ethanol is Q= p-0504 p…

A: Given U.S demand function for ethanol Q=p-0.504pg1.269v2.226 Here Q= Quantity of ethanol p is the…

Q: 1)…

A: Protectionism is the act of the state to help improve the strength and conditions of firms and…

Q: the context of commerical banking, which of the following is an example of interest rate risk…

A: A bank deposit refers to the placement of funds by individuals, businesses, or institutions into a…

Q: Which of the following statements is true?     A depression is a mild and relatively brief…

A: The business cycle alludes to the fluctuation in monetary activity that happens after some time. It…

Q: Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war.…

A: Equivalent annual cost (EAC) is a financial concept that is used to compare the costs of two or more…

Q: Why do firms exist?

A: A firm is an organization or entity that combines various resources, such as capital, labor, and…

Q: Question 5. The short and medium run: Aggregate supply In an economy, the firms profit-maximize by…

A: The macroeconomic equilibrium is obtained at the level, where the long run aggregate supply  , AD…

Q: Use the midpoint method to calculate the price elasticity of demand. 1. Suppose the price of a large…

A: Since you have posted multiple questions, we will provide the solution to only the first question as…

Q: An example of a positive externality is: a) the profit made from the sale of electric vehicles b)…

A: Externality refers to the cost or benefit on a third party that is not directly involved in it . A…

Q: end of each of years 1-4, with all monetary amounts being in real dollars. Inflation is running 7%…

A: Present worth, also known as present value, is a financial concept that refers to the value today of…

Q: The United States President decides to raise tariffs on all imports of goods and services from China…

A: The government of a nation imposes taxes on imported commodities in the form of import tariffs. By…

Q: 1. Elaborate on "Protection to save jobs". Should the US stop trading with the rest of the world,…

A: "Protection to save jobs" refers to the idea of implementing trade protectionist policies to shield…

Q: Given this change, the dollar Fill in the following table with the effect of a tariff on the…

A: A country's ability to import a certain amount of a good over a specific period of time is…

Q: Your value to live in a quiet apartment is $400. The neighbor living above your apartment makes…

A: The coase theorem suggest that an optimal decision will be taken in situations where there is a…

Q: Suppose that a monopolist faces linear demand given by Q(p)=1000-10p The monopolist also pays a…

A: Profit maximization refers to the level of production in a production process at which a firm is…

Q: In the year 2020, Alpha has a real GDP of $80 billion and Omega has a real GDP of $10 billion. If…

A: GDP refers to the monetary value of all final goods and services that is produced in the domestic…

Q: The table below shows hypothectical figures of revenue and spending for the Canadian government. For…

A: Net tax revenue will be calculated as tax revenue minus transfer payments. The transfer payments…

Q: It costs 100 GBP to buy a certain basket of goods in the UK. It costs 200 USD to buy the same basket…

A: The value of one country's currency in relation to another country's currency is known as an…

Q: 3- Which of the following mutually exclusive projects is the best alternative using the incremen…

A: When we have multiple alternatives then the incremental benefit-cost ratio needs to be calculated to…

Q: How has inflation led to changes in the monetary policy?

A: Inflation refers to increase in the general price level of goods and services in an economy…

Q: Suppose that a monopolist faces linear demand given by Q(p)=1000-10p The monopolist also pays a…

A: In a monopoly market structure,  There exists a single seller.  The monopolist will maximize it's…

Q: Figure: Price Floors Wages $20 14 Supply Demand 5,000 8,000 12,000 Q of Labor 11,000 Suppose the…

A: The labor market is the place where the demanders for labor, i.e., firms, and the suppliers of…

Q: Consider the (‘long run’) effects of inward labor migration in the Heckscher-Ohlin Model. Assume…

A: The Heckscher-Ohlin (HO) model is an international trade theory that explains trade patterns between…

Q: Purchasing power parity hypothesis postulates that nominal exchange rate growth (NER) in a country…

A: NERt=0.19+0.96πt-0.80πt*              (0.01) (0.24)      (0.10) R12=0.90SSR1=900

Q: Suppose that you decide to borrow $13,000 for a new car. You can select one of the following loans,…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: 8. Natural monopoly analysis The following graph gives the demand (D) curve for water services in…

A: Natural monopoly is the single firm in the market with decreasing average total cost.

Q: Critically evaluate how happiness is related to economic development. Use Macroeconomics and…

A: Economic development refers to the sustained improvement of an economy's overall performance and the…

Q: hy might Keynesians be pessimistic about the ability of monetary policy to stimulate output in…

A: The keynesian economists do not believe in effectiveness of monetary policy. They argue that fiscal…

Q: c) Devise a quantity tax on product q for firm A in (a) such that the government can restore the…

A: c) To restore the social optimum in part (b), the government can impose a quantity tax on firm A's…

Q: 5. A graphical comparison of tariffs and quotas Alagir and Ertil are small countries that protect…

A: Import tariffs and quotas are one type of trade restriction that a govt imposes on its economy. It…

Q: Click to see additional instructions When supplying labour for universities, academics are aware…

A: In the labor market , the equilibrium wages will be found at the level where the demand for labor…

Q: The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month.…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out."…

A: Nash equilibrium is a concept in game theory that describes a state in which each player in a game…

Q: During an extremely hot summer, we observed more air conditioners sold than in the past, despite a…

A: Demand curve is a graphical representation of relationship between price and quantity demanded of a…

Q: In Game Theory, there is an incentive to cheat. Please explain both the prisoner’s dilemma and the…

A: Game theory refers to a mathematical and scientific structure used to study and examine strategic…

Q: which of the following is a government bond that is repaid within 2-10 years? a Treasury note b…

A: Government bonds are debt securities issued by governments to finance their spending needs. They are…

Q: Edmonton Lighting is a store that sells light fixtures. They employ 12 permanent workers as well as…

A: The long-term tangible assets that a firm owns and uses to generate revenue are termed ‘fixed…

Q: Question 12 If there is excess demand for money, then people will a. deposit more money into…

A: Demand for money refers to people and businesses wanting to have a specific quantity of cash or…

Q: Assume that the food delivery market in Australia is perfectly competitive. Use the market demand…

A: A perfectly competitive market is a theoretical model used in economics to describe a market in…

Q: Suppose a bout of severe weather drives up agricultural costs, increases the costs of transporting…

A: The SRAS curve demonstrates that the amount of real GDP that will be generated in an economy…

Q: Look at the following ratios: ⚫ 90/10 ratio= the ratio of Decile 10 income to Decile 1 income •…

A: The decile dispersion ratio compares the average earnings/income of the x percent (wealthy…

Q: Make a speech about the advantages of having a 6-year term of national positions here in the…

A: Government refers to the system or organization that exercises political authority and control over…

Q: What is pButter/pShoes O 1/5 05 O 0.5 02

A: A budget constraint refers to the graphical representation of all possible combination of good that…

Q: Illustrate the following utility functions by sketching indifference curves in the X,Y space. (Need…

A: An indifference curve is a locus of all combinations of two goods or two baskets of goods a consumer…

Q: 2. A monopoly faces an inverse demand function p = 90-Q, has a constant marginal and average cost of…

A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…

Q: Econ 312 Macroeconon Theory Question 1. The labor market In an economy, the firms profit-maximize by…

A: (a) To find the equilibrium number of workers, we can set the MPL equal to the wage and solve for L:…

Q: :Consider the following financial data for a project. a- Find the (ROR) for the project.. Ty Sve jus…

A: Given Initial investment (P) 18000 Annual revenue  5000 Annual expenses  3000 Salvage value…

Q: In Game Theory, there is an incentive to cheat. Please explain both the prisoner’s dilemma and the…

A: Game theory refers to a mathematical and scientific structure used to study and examine strategic…

Q: Why we should agree in 6-year term of national positions rather than 4-year term of national…

A: A 4-year term of national position refers to the duration of office for elected officials in key…

Q: 1. Suppose Pepsi Cola, which includes Mt. Dew and several other sodas, purchased Coca-Cola & Coke’s…

A: A market is a place or a platform where buyers and sellers interact and exchange goods or services…