Using DD-AA-XX curves, compare the effect on the current account of temporary and permanent increases in government spending. include graph on your explanation..
Q: A medium size manufacturing company has a budget of $200,000 to invest on five different capital…
A: For all the alternatives provided above only the ones with highest rate of return should be…
Q: Explain to a new farmer why she/he should conduct an economic analysis to decide in she/he needs a…
A: Farmer: It refers to people who produce food for the economy. The more the farmers will produce more…
Q: Write function for the average cost to produce x items. Then describe what happens to the average…
A:
Q: Suppose Coca Cola and PepsiCo are producing a new, healthy version of Coke and Pepsi. They are…
A:
Q: What are the main characteristic/assumption of monopoly market structure?
A: Monopoly: Monopoly means "alone to sell". In a market with a monopoly, there is only one seller of a…
Q: Assume that Aruba and Iceland can switch between producing coolers and producing radios at a…
A: Production functions shows the relationship between the inputs used and output derived. The…
Q: True or false: Banks can help "create" money. True False
A: Banks have several functions apart from accepting deposits from the public. For example, banks lend…
Q: We expect that monopolies will set a price ___________ their marginal cost.
A: In case of monopoly , The firm will produce it's profit maximizing quantity. The profit maximizing…
Q: Deposits equal Balance Sheet ASSETS Reserves (Required) $ 50,000 Loans Reserve Ratio $30,000.…
A: Reserve is the part of deposit that is kept by the banks. Required reserve is calculated by…
Q: Suppose that the United States adopts a policy of deporting illegal immigrat workers. Before this…
A: Labour market : labour market is a market where the firms and households interacts. The firms…
Q: What is the Monopolistic firm's Marginal Revenue Function If the inverse demand function for its…
A: Total revenue refers to the total amount of money spent on selling all the goods and services in the…
Q: 2) The AD-AS diagram features a LRAS curve and an AD curve. An example is below. Suppose in this…
A: In simple terms, aggregate demand refers to total spending. In a dynamic model, aggregate demand…
Q: Which of the following are considered money? (Check all that apply): A. Coins and paper money…
A: 1. Medium of exchange: Due to its widespread acceptance, money serves as a crucial medium of…
Q: An early sign that financial innovation might be leading toward a financial crisis is deleveraging…
A: The process of developing new financial products, services, or procedures is known as financial…
Q: Economic efficiency in a market requires that the market be allocatively and technically efficient.…
A: The change in utility from consuming an additional unit of a commodity is called marginal utility.…
Q: Firm A Not Advertise Advertise (A) $250 B) $200 (C) $100 (D) $150 Not Advertise $200 Firm B $250…
A: Cooperative solution is where the sum of payoffs of both the players are maximum. Dominant…
Q: d. $20
A: In the long run competitive equilibrium will be Price P= Marginal cost= Marginal revenue= minimum…
Q: For a monopolistic firm, If Marginal Cost is constant at 200, and the inverse demand function for…
A: The firm maximizes profit by producing quantity of output where marginal cost and marginal revenue…
Q: You are considering subscribing to ESPN+. You are willing to pay up to $66 per year for a…
A: When customers pay less for a good or service than they are willing to pay, this is known as a…
Q: Ernesto borrowed P30,000 from a bank and promised to pay the amount for 1 year. The bank discounted…
A: A discounted loan is a loan in which the interest amount is deducted at the time of the loan made…
Q: According to the latest measures, 1 USD = 147 JPY, 1 EUR = 145.51 JPY, and 1 EUR = 0.95 USD…
A: The shadow price is an estimated price for something that is not normally priced or sold in the…
Q: a) If the price of the first good decrease to 4$ (p₁ = 4$) then find the new (final) Marshallian and…
A:
Q: Consider the following game. Player 1 can choose Strategy A or B while Player 2 can choose Strategy…
A: “Since multiple question have been asked by you we will solve the first question . Please specify…
Q: If P5,000 is invested for 10 years with an interest rate of 8%, compounded quarterly, what will the…
A:
Q: Find the optimal strategies, P and Q, for the row and column players, respectively. Fractions should…
A: Given pay off matrix C player C1 C2 R player R1 -1 2 R2 6 -7
Q: A. Canada produces natural resources (coal, natural gas, and others), the demand for which has…
A: A worldwide decentralized or over-the-counter market for exchanging currencies is known as the…
Q: 1. is a theory of oligopoly in which oligopolistic firms act as if there were is an organization of…
A: Oligopoly is a market structure in which there are few large firms in the market. The presence of…
Q: 9. A plant can produce 300 ceramic plates per working day. The direct cost for producing each plate…
A: Production costs include the direct and indirect costs that an entity incurs in the manufacturing of…
Q: Reilly's Law/trade area capturing The city Riverside wants to know how many customers it has…
A: Trade refers to the exchange of goods and services between different nations. When a nation is…
Q: Mr. Toni bought a plot of land for investment. The following the following functions: V(t) = 100et…
A: A plot of land is bought by Mr. T for investment purposes. The value of that plot continues to…
Q: Suppose that we are in a market dominated by a monopolist. Market demand is given by: Q=222-2p The…
A: A monopoly is a market condition in which there is a single seller selling services and goods in the…
Q: 1. Consider a two player, simultaneous move game. The strategies available to each player and…
A: IntroductionIn a two-player pure strategy Nash equilibrium, neither player has any motive to deviate…
Q: Under what circumstances is the balance-budget philosophy pro-cyclical? Multiple Choice O O O A…
A: A cyclically balanced budget refers to a type of budget that may not necessarily balanced…
Q: 3. Consider another Ricardian example, using standard Ricardian assumptions: Labor Hours per Bottle…
A: International trade is the exchange or trade of products and services between various countries.…
Q: A monopoly face the following demand, marginal revenue and marginal cost functions Note that in this…
A: The monopolist’s demand refers to the market demand. When The monopolist is a price maker. Pure…
Q: Monetizing the debt when the Federal Reserve: (which of the following) O. increases money…
A: Federal Banks can increase or decrease money according to the prevalent situation in the economy. In…
Q: 7:51 AM 0 Kb/s ← Image LTE... .... VOD LTE LTEⓇ 74% Assume the desired reserve ratio is 12 percent…
A: Money multiplier is a concept that refers to the number of times a the given deposit increases and…
Q: Annual expenses for two alternatives have been estimated on different bases as follows. End of Year…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Trade was an engine for growth for the then developing countries of the 19th Century. Trade and…
A: Developing countries: A developing nation, also known as an emerging market or a less developed…
Q: When would a monopoly shut down? Select one: O a. never, because it can raise its prices as high as…
A: In a monopoly market , The profit maximizing quantity is where MR = MC. MR is the marginal revenue…
Q: If government mandates P = ATC, are profits positive, negative, or zero? Compared to monopoly…
A: The monopoly is a single-seller market. Under monopoly pricing, the profit maximization quantity and…
Q: what type of fiscal policy or monetary policy that is currently being implemented
A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…
Q: What amount of money deposited 20 years ago at 4% interest would provide a perpetual payment of 2000…
A: The present value of a sum of money in the future is its current value. The Present Value is the…
Q: What is the real average hourly earnings for 1965 in 2010 dollars equal to?
A: CPI is known as Consumer Price Index. It measures the total cost of goods and services bought by a…
Q: Consider three inputs of production: labour, physical capital and natural resources, and an economy…
A: Decreasing return to scale is when the increase in input will increase the output but the increase…
Q: The price of good X is $7. But each unit of good X produces has an external cost of $1. What is the…
A: Private costs are the expenses incurred by the producer in the course of creating a certain product.…
Q: Why would the types of policy choices we normally might say are poor stimulative policies (such as…
A: Economic stimulus refers to the actions taken by the government to stimulate the economy of the…
Q: A diesel refinery is upstream of an industrial farm. The runoff from the refinery pollutes the river…
A: The social optimum output level shows all the costs and benefits associated with a transaction i.e.…
Q: The annual variable production costs for a plant operating at 70% capacity are P210,000. The sum of…
A: Given: Operating Capacity - 70% Variable cost - P210000 Fixed Cost - P200000 Annual Sales - P560000…
Q: Suppose that the market demand and supply for bicycles in Sydney are given as follows: Demand: P =…
A: The equilibrium in any market is determined by the interaction of demand and supply. The government…
Using DD-AA-XX
Step by step
Solved in 3 steps with 4 images
- Explain how to derive a total expenditures (TE) curve.Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and long—term impacts of such policies on the economy?What is the economic reason why the SRAS curve slopes up?
- CENGAGE MINDTAP Aplia Homework: Fiscal Policy Assume that the economy is currently producing at its potential output. Suppose the government decided to increase taxes to rein in consumer spending, but everything else in the economy remained the same. On the following graph, shift the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), or both to show the intended short-run effect of this fiscal policy on the economy. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE LEVEL MAR 7 K Aa O SRAS AD [115 13 AD T SRAS 11,095 MA zoom W12. Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the AS-AD model to show what the impact will be of this change on GDP.If someone passes 1 trillion Infrastructure Bill,Graphical show the projected effect of this policy on output using MP-IS-AD model.
- Explain , using the AD - AS model , government can use fiscal policy as a tool to recover from the negative effects of this COVID - 19 pandemic. Should include the folllowing : -The description of the type of fiscal policy required - Explaination on how the implementation of this tool will work their way through the economy to achieve the desired effect. Suppose the United States economy is repre- sented by the following equations: Z = C + I + G, C = 500 + 0.75YD, T = 600, I = 300, YD = Y − T , G = 2000 Given the above variables, calculate the equilibrium level of output. assume that government spending decreases from 2000 to 1900. What is the new equilibrium level of output? How much does income change as a result of this event? What is the multiplier for this economy?Please read the New Item:‘Covid-19 has crushed everybody’s economy – Except for South Korea’s’, Foreign Policy, September 16, 2020 What is multiplier? How does it work? Do you think it worked in South Korean Case?
- Derive the consumption function and use this relation in the aggregate demand function to derivean equation for the equilibrium in the goods market . Why the AD line is upward sloping?Suppose the government spending falls by 100 and in this case marginal propensity to consumeis 0.8. what is the value of change in output. Draw a diagram to show the shift in AD line due tothis change in government spending and output.Use the information in the following table to answer the questions below. Assume you are dealing with short-run aspects of the economy, so the marginal propensity to consume is constant. Also, for simplicity, assume this economy has no taxes. In your answers, expain brifly how did you get the numerical result. Real GDP Consumption PlannedInvestment GovernmentPurchases Net Exports $9,000 $7,800 $1,500 $1,000 -$700 $10,000 $8,600 $1,500 $1,000 -$700 $11,000 $9,400 $1,500 $1,000 -$700 $12,000 $10,200 $1,500 $1,000 -$700 $13,000 $11,000 $1,500 $1,000 -$700 $14,000 $11,800 $1,500 $1,000 -$700 (a) What is the equilibrium level of real GDP in this economy? (b) Compute the marginal propensity to consume. (c) Compute the government expenditures multipler. (d) Suppose net export increases by $400 (Assuming MPC, Gevernment Purchases, and Planned Investment are the same). What will be the new equilibrium level of GDP? Consumption?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 ? hegathe