Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Chapter 1, Problem 5QQ
To determine
Price flexibility and market-clearing model.
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In a School year 2020, at a University which requires that all students must take Accounts as a core requirement. The University Bookshop made their order for Accounts Textbook based on the number of registered students in the last academic year.
Using the list of options of possible impacts, select what is happening in the following markets. Select the impact if any on i.Supply ii.Price iii.Quanityiv.Demand
Select the correct statement/statements
which are correct as per the famous 'Say's
Law' using the code given below :
1. Economic systems are 'supply-led'.
2. All accruing income is to be spent.
3. Aggregate supply creates its own
aggregate demand in an economy.
CODE :
(a) 1 and 2
(b) 2 and 3
(c) 1 and 3
(d) 1, 2 and 3
1. How does microeconomics relate to macroeconomics?
2. Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to
support your answers.
• The number of people at the most common ages for home-buying increases.
• People gain confidence that the economy is growing and that their jobs are secure.
• Banks that have made home loans find that a larger number of people than they expected are not repaying those loans.
• Because of a threat of war, people become uncertain about their economic future.
• The overall level of saving in the economy diminishes.
• The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
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- Distinguish between the following concepts:I. Microeconomics and macroeconomicsII. II. Scarcity and choiceIII. Opportunity cost and scale of preference.b. With the aid diagrams show the differences between the following:I. Increase in demand and increase in quantity demand II. Decrease in supply and decrease in quantity suppliedIII. Price ceiling and price floorarrow_forwardIn Oman, due to Covid 19 problems, there was an inflation in prices. Based on the given information, select the economic force which affected Oman. O a. Competition force O b. Macroeconomic force None of the options O d. Microeconomic forcearrow_forwardState whether the following statements are true or false a. In a pure ‘planned economy’ the market decides what should be produced. b. A macroeconomic issue tends to influence all the firms and households, rather than specific firms or households. c. A price elasticity of demand of 0.4 means that a 10% increase in price leads to a 4% reduction in the quantity of a good demanded.arrow_forward
- Studying the determination of prices in individual markets is primarily a concern of_____________. a. Microeconomics. b. Macroeconomics. c. Negative economics. d. Positive economics.arrow_forward11. According to Glaeser and Guryouko "Urban Decline and Durable Housing", what are the key findings A. Cities grow faster than they decline B. A negative shock to urban demand is more likely to result in lower house prices than population declines C. A positive demand shock is more likely to result in higher population than a rise in house prices. D. All of the above 12. According to Glaeser, Gyourko, & Saks, how might we know that regulations are contributing to high house prices? A. House prices have risen above the marginal cost of construction B. House prices are rising C. Interest rates are increasing D. There is high population growth E. Construction costs are risingarrow_forwardwith explanation please Select the correct statement/statements which are correct as per the famous ‘Say’s Law’ using the code given below : 1. Economic systems are ‘supply−led’. 2. All accruing income is to be spent. 3. Aggregate supply creates its own aggregate demand in an economy. CODE : (a) 1 and 2 (b) 2 and 3 (c) 1 and 3 (d) 1, 2 and 3arrow_forward
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