7) Assume that a $1.00 increase in exports increases GDP by $3.00, and å income increases import spending by $0.15. In this case, a $1,000 million increase in exports will increase net exports by A) $550 million. B) S700 million. C) $1,000 million. D) $1,350 million. rease in
Q: When they act as a profit-maximizing cartel, each company will produce cans and charge $ per can.…
A: Introduction When they act as a profit - maximizing cartel, each company will produce 40 cans and…
Q: (29) The demand for Healthy Bars, a health snack bar, is Qd = 10 - (2 x P) and Healthy Bars has a…
A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…
Q: 10) If an economy's MPC is 0.8 and the MPM is 0.05, then an increase in government spending of…
A: MPC=0.8 MPM=0.05 Change in G=$2000 We will use the following multiplier formula: Expenditure…
Q: 4. 3-2: Changes in QD Versus *3* The Wall Street Journal of November 17, 2020, reported on the…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Definition of Economic Globalization, Financial Globalization, and their examples.
A: Globalization is defined as a process in which corporations, people, and governments from various…
Q: Problem 6: ZYK Corporation makes its policy that for a new piece of equipment purchased, the annual…
A: Given that, annual depreciation must not exceed 20% of the first cost we have to find the length of…
Q: Sarah is looking to buy a new car! She goes to a new car dealership to shop for cars and is willing…
A: Market for Lemons It is a situation in the used car market where the sellers are assumed to be well…
Q: Which statement best explains why budget deficits may bring on a recession? a) Large deficits…
A: When the government’s revenue is less than its spending, a budget deficit occurs.
Q: 13. 8-6B: Total Costs and Average Costs *3* If the Total Variable Cost (TVC) curve is rising then…
A: below table show the TVC shedule, where rise in TVC gives rise to AVC. AC stills falls for certain…
Q: firm is producing and selling some output at an average variable cost of $8 per unit and bringing in…
A:
Q: The following graph shows the daily market for strawberry pickers in California. Show the effect of…
A: The market supply curve of a commodity can shift as a result of a change in technology, government…
Q: If the natural rate of unemployment is 4% and the economy is producing at 105% of potential output,…
A: According to the Okun's law, when unemployment increases by 1%, GDP drops by 2%. Therefore if there…
Q: Angela has $90 to spend on movies and books. The price of movies (M) is $10 and the price of books…
A: PM= $10 PB= $15 I= $90
Q: Evaluate the impact of TRAIN Law in the Philippine Economic Development using the…
A: A SWOT analysis basically refers to a strategy that is used for evaluating these four areas of your…
Q: Consider an economy that is composed of identical individuals who live for two periods. These…
A: Utility function : U = c10.5 + c2 0.5 Intertemporal Budget Constraint : c1 + c2 /(1+r) = Y1 + Y2…
Q: The table below provides Income and consumption Data in billions of dollars. Answer question below…
A: Here, the given table shows the consumption level at different income levels in an economy.
Q: A short-run increase in government spending causes the currency to, and output to appreciate;…
A: when the expansionary fiscal policy occurs due to an increase in government spending, the demand for…
Q: This type of economy aims for the efficient use of natural resources but also seeks a fair…
A: Stable economies differ from stagnant economies, which are marked by high unemployment and widening…
Q: Which of the following arguments for limitations on trade is more controversial among economists?…
A: In an open economy, government generally intervene in the international trade by using its policies,…
Q: 1. Suppose that a bank’s customer deposits $20,000 in her checking account. The required reserve…
A: Bank Deposit = 20000 Required Reserve Ratio = 0.125 A bank after keeping certain portion of…
Q: Comment on the free rider problem in the context of global climate agreements.
A: Free rider problem in the context of global climatic agreements according to economists is treated…
Q: Use the following information to answer the questions: Suppose the Texans Bank has total deposit of…
A: Answer; The Texans Bank has total deposits of $2,769. It also has a required reserve ratio of 6%.…
Q: Explain how each nation-state member's economy is influenced by contemporary social, political and…
A: A stàte is defined as an independent government with local boundaries i.e rule in the nàme of a…
Q: inal abatement cost curves, MCA: MCA2. Any combination of tion abatement levels, A1 for firm d A2…
A: Introduction: Abatment costs are the expenses related with eliminating negative side-effects made…
Q: If the stock market crashes, reducing real wealth, at the same time that energy prices falling, what…
A: If the stock market crashes , reducing real wealth at the same time that energy prices are falling…
Q: Pluto nation is an open economy with a gross domestic product of $2,000 million, government…
A: Answer; Option (c) $ 900 million is correct
Q: Market Structure Characteristics EXAMPLE?? Pure Competition Many firms Many buyers Many firms with…
A: A market is a gathering area where buyers and sellers may meet in order to enable the exchange or…
Q: R,' EER' EER2 Rates of Retum (in dollar terms) O 1) a decrease in the European money supply which…
A: In the international market, the return on investment depends upon its value in the market, which is…
Q: 2. If a consumer faces two goods x and y, and her utility function is given by U(x, y) = (x - x,)5(y…
A: Answer I attached below
Q: The area between the supply curve and the price (or, to be more accurate, a horizontal line…
A:
Q: 1. Explain the meaning of: R-SQUARED F-TEST MULTICOLLINEARITY 2. Why are these considered as…
A: 1. R Squared R-squared is an analytical measure of the proportion of variation that is quantified in…
Q: Problem 7- Accounting and Engineering Economics- Balance Sheet Describe what a Balance Sheet is and…
A: Fixed Asset = 50 mn Current Asset = 20 mn Current and long term liability = 1mn
Q: Required information In wisely planning for your retirement, you invest $18,000 per year for 20…
A: Answer; First finding Nominal interest rate : Nominal interest rate = [ ( 1+ real interest…
Q: Given a saving rate of 4%, a depreciation rate of 1%, and a production function in which y = k0.5…
A: The production function is the computation by which the quantity of inputs makes various outputs. At…
Q: Dennison Manufacturing makes large helical springs used in aircraft landing gear. The company has…
A: Let the demand = Q Total cost = Fixed cost + Veriable cost
Q: Moneytopia consists of an economy that only has two companies. Farm Corp is a business that grows…
A: Given information
Q: What happens to consumer surplus when the supply curve moves left? Question 2 options: Since…
A: The markets are the place which are operated by the buyers and the sellers of various different…
Q: O Causes a reduction of potential GDP and the long-run aggregate supply.
A:
Q: Average variable cost is always increasing as output increases whenever... Group of answer choices…
A: Variable cost refers to the cost that changes as output or production changes. Average variable cost…
Q: Why is the interest rate irrelevant in the one-period general equilibrium model? What is the…
A: One-Period General Equilibrium Model One-period General Equilibrium model is a theory that explains…
Q: A manufacturer has $600 to spend on the production of a certain product and knows that if "x" units…
A:
Q: At 7.2%, a bridge cost P 280M with a life of 20 years. The bridge must be partially rebuilt at a…
A: Investors can use capitalized value to determine the price of a possible investment. Capitalized…
Q: Your roommate is thinking of permanently dropping out of school this semester. If his tuition…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: At a current level of production of 10,000 per day in its Garner plant, the marginal cost of…
A: According to the question, it is given that : Output per day is 10,000 Marginal Cost is 50 cents…
Q: Consider a standard first-price auction for a single object. There are three bidders (N = 3) with…
A: Answer :-
Q: (real GDP) $ 2,000 2,100 2,200 (real GDP) $ 150,000 152,000 154,000 Year (population) (population) 1…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: The Monetarists believe that interest rates can move in the opposite direction from the conventional…
A: Monetary approach is based on the fact that is controlled by monetary policy of interest rate .…
Q: In a perfectly competitive market, assume the market price is $10 per unit, and the…
A: Answer; The profit amount at the profit-maximizing quantity is $90.
Q: given the function c(x) = 100 + 8x + 0.1x^2 find the marginal profit At x = 50 if the price per unit…
A: given c(x) = 100 + 8x + 0.1x^2 x = 50 and price per unit (P)= 20
Q: 7. Solving for dominant strategies and the Nash equilibrium Suppose Dmitri and Frances are playing a…
A: Answer is given below
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Between 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. The change in net exports will decrease GDP by $5 billion. O b. The change in net exports will decrease GDP by $10 billion. C. d. The change in net exports will increase GDP by $5 billion. O e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.Question 4 If Chinese consumers decrease their demand for apples from New Zealand, then (other things being equal) China's: OA Imports and net exports fall O B. Exports and net exports fall OC Exports fall and net exports rise OD. Imports fall and net exports riseExercise 4. Imports and the multiplier. The consumption multiplier tries to capture the idea that individuals increase their consumption expenditures when their income increases, even when it is only a short-term increase and their life time income didn't change. However, individuals not only consume domestic products but also, they import part of their consumption. Therefore, if domestic consumption reacts to changes in current income, then it is natural to think that consumption of foreign goods should increase as well. For example, when the economy is booming, imports usually rise. To incorporate this channel into the model, suppose the import equation is given by Mt =āmīt + xm Ỹt Ỹt are described by equations in the previous exercise It = āƒŸt — b(R₁ − ñ) Yt, Ct =ācīt + x Ỹt Ỹt. The other categories of expenditures follow the same rules as in class. a) Derive the IS curve for this new specification. b) What is the economic explanation for why the parameter xm shows up in the…
- Assume that a nation's marginal propensity to consume (MPC) is 0.75. A highiy productive, cost-cutting technology is developed for the production of commercial airplanes. The total industry expenditure in this nation is $100 million for the immediate acquisition and adoption of this technology. (a) For this nation, identify and explain how much this spending on new technology will change each of the following in the first round: i. Income (GDP) L. Saving i. Consumption (b) Assuming a closed economy and no leakages, identify and explain how much this spending on new technology will change each of the following at the end of the final round: i. Income (GDP) ii. Saving li. ConsumptionThe table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Consumption expenditure, C (billions of 2012 dollars) Government Real GDP, Y (billions of 2012 dollars) Investment, / (billions of 2012 dollars) expenditure, G (billions of 2012 dollars) 15 6. 20 10 25 14 30 18 35 22 The equilibrium expenditure is O A. $20 billion. O B. $30 billion. O C. $15 billion. O D. $10 billion. O E. $25 billion.3) The value for net exports in billions of dollars is A) -200. B)-150 C) 50. D) 250. 4) The value for gross domestic product in billions of dollars is A) 2,900. B) 3140 C) 3,440. D) 3,650.
- GDP $0 1 2 Consumption $0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 D 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is: 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investme O $1 trillion. $2 trillion. O $3 trillion. O $4 trillion. $6 trillion. 4 Aggregate Expenditures 6 Unplanned inventoryIf US exports increased and imports remained constant, this would... O No change in GDP Decrease GDP Increase Net Exports Increase Government PurchasesBased on the following statistics, how much is consumption? Total spending Investment Government spending Exports Imports O-$0.38 trillion O $5.13 trillion O $6.49 trillion O $11.62 trillion $11.62 trillion $2.56 trillion $2.95 trillion $1.80 trillion $2.18 trillion
- 6.6) Which of the following statements about the open-economy IS curve is correct (a) It is steeper than the closed-economy IS curve because net export depends posi- tively on domestic income. (b) It would shift upward when the domestic government relaxes its import quotas. (c) All of the above. (d) None of the above.1. Transfer payments are: A) payments made to firms for investment. B) payments that do not require a good or service in exchange. C) considered a part of government purchases. D) an important component of GDP because they increase consumption spending. 2. A country's exports minus its imports measures: A) net exports. B) gross exports. C) net imports. D) gross imports. 3. A trade deficit occurs when: A) foreign remittances paid are less than foreign remittances received. B) exports are less than imports. C) exports equal imports. D) exports are greater than imports.106. Which of these would be included in Canadian consumption? O A French resident buys a new house in Canada Samantha produces some art work to decorate her house. A Canadian resident buys a car manufactured in Brazil. Beverly buys a newly issued stock in a Canadian corporation