E4 Government officials say that the pricing of steel is no longer as big an issue now, the biggest constraint on growth is “erratic” electricity supply. Graphically illustrate and explain how an increase in steel prices can lead to an increase in electricity prices.
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E4
Government officials say that the pricing of steel is no longer as big an issue now, the biggest constraint on growth is “erratic” electricity supply. Graphically illustrate and explain how an increase in steel prices can lead to an increase in electricity prices.
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- Recent data from the Bureau of Labor Statistics show that the average price level for consumers rose 5.4% over the past year. While some are expressing concern over rising inflation leading the economy to “overheat,” there is some evidence indicating that this is due to the reopening of the economy as producers adjust to rising demand for goods and services. Many of the goods with the largest price increases, like bacon or cars and trucks, cannot have their production ramped up as quickly as demand is increasing. Other industries are facing supply chain challenges, like shortages of truck drivers. These problems are most likely to be short term, so, as supply catches up with demand, we can expect to see prices return to normal. As evidence, after spiking to record highs in early summer, lumber prices have now fallen below their price at the start of the year. The reason for the dramatic price increase earlier in the year was a combination of reduced supply in 2019 and a surge in demand…Let's think of an economy with two industries and these industries be water and electricity companies. Electricity company, electricity using water and electricity; The water company also produces water using water and electricity. With the output of both companies measured in TL, 0.1 TL electricity and 0.1 TL water is required to produce 1 TL of electricity, 0.8 TL electricity and 0.2 TL water to produce 1 TL water. As the demand of the foreign sector is 18.000 TL electricity and 12.000 TL water production, X1 = total output of the electricity company, X2 = total output of the water company, electricity and waterCalculate the total output required for the companies to meet both external and internal demand by any matrix method.In 2020 Pakistan Automobile Market falls by 33.6 % as the pandemic and lockdowns affect sales. In the same year, Ministry of Industries has announced its new auto policy to reduce taxes which would bring down car prices and provide relief the consumers. Moreover, the government has also approved the Electric Vehicle (EV) policy. Considering the above scenario, do you think that government is diligently working to uplift the economy and has the recognition that the automobile sector can be the biggest contributor in it?
- Price in Quantity in Price in Product Quantity in Price in Quantity in 2009 2009 2019 2019 2020 2020 A 10 8 12 10 13 14 B 6 13 8 9 9 20 C 14 17 17 17 17 21 D 13 11 14 10 13 13 The table above shows the quantities of Goods A-D produced and their prices in 2009, 2019 and 2020. The base year is 2009. Calculate the economic growth rate in 2020. (Enter your answer as a percentage rounded to 2 decimal places. Do not put the percent sign.) Your Answer: AnswerThe following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD1 to AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion, where previously it was $300 billion. 170 160 150 140 - 130 AD2 120 110 AD, 100 90 100 200 300 400 500 600 700 800 OUTPUT (Billions of dollars) The following table lists several determinants of aggregate demand. Complete the table by indicating the change in each determinant necessary to increase aggregate demand. Change Needed to Increase AD Wealth Taxes Interest rates The value of the domestic currency relative to the foreign currency PRICE LEVELThe following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD¡ to AD2, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion, wwhere previously it was $300 billion. 170 100 150 140 130 120 AD2 110 AD, 100 00 + 100 200 300 400 500 00 700 800 OUTPUT (Billions of dollars) The following table lists several determinants of aggregate demand. Complete the table by indicating the change needed in each determinant to increase aggregate demand. Change Needed to Increase AD Wealth Тахes Expected rate of return on investment Incomes in other countries PRICE LEVEL
- Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity 300 225 150 Real GDP $400 300 200 Instructions: Enter your answers rounded to 2 decimal places. a. What is the level of productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $3? c. Assume that the input price increases from $3 to $4 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction would the $1 increase in input price push the economy's aggregate supply curve? Click to select What effect would this shift of aggregate supply have on the price level and the level of real output? Both the price level and real output would remain the same. The price level would decrease and real output would remain the same.Suppose that imports decreases by 10 and the other components remain. Will the level of saving and consumption change as the economy adjusts to this change in imports? Explain.The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. Suppose a stretch of unseasonably good weather occurs, allowing pistachio growers to produce more pistachios per hectare. Show the effect this shock has on the market for pistachios by shifting the demand curve, supply curve, or both, 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 i to its original position, just drag it a little farther. snaps back PRICE (Dollars per ton) 30 24 10 20 30 Demand QUANTITY (Thousands of tons) Supply 40 50 Demand 101 Supply ?
- Please answer the given four questions related to the market for loanable funds. What effect will an increase in interest rates have on the quantity of loanable funds supplied? There will be no change in quantity supplied. Quantity supplied will decrease. Some lenders will offer more whereas others offer less. Quantity supplied will increase. As interest rate decreases, what happens to the quantity of loanable funds demanded? Some borrowers will demand more funds whereas others will demand less. There will be no change in quantity demanded. Quantity demanded will increase. Quantity demanded will decrease. Which of the terms acts as the "price" in the market for loanable funds? demand capital supply If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the borrowing business act? The business will proceed anyway, knowing that the return is only an estimate. The…4. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. INTEREST RATE (Percent) 9 8 0 0 100 Supply Demand 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars)1) Consider a book sitting on a bookcase at home. Draw a graph showing its supply chain from the raw material all the way to the bookcase. Briefly explain each node in the supply chain along with the flow of material, information, and funds between different nodes. Also show the flow of material, information, and funds on the graph using arrows with different colors. Make sure to label the arrows.