Q: For a decrease in the price of capital (K), construct a table AND explain the scale and substitution…
A: Cost minimization The reduction of spending on pointless or ineffective processes is known as cost…
Q: Now suppose that Jason's utility is entirely based on number of hours of skiing (X) and skating (Y).…
A: Utility function : U (x ,y ) = max {aX, bY } Budget Constraint : Px (X) + Py (Y) = M Also its…
Q: A Civil Engineer is considering establishing his own company. An investment of P4,00 required, which…
A: Initial Investment = 4 000000 Life = 15 years Total Annual Cost = Materials Cost + Labor Cost +…
Q: Exercise 3. Suppose a game has an exact potential o. Show that is an exact potential for the game if…
A: Let us fix z∈S. For all s∈S define,H(s) =∑i=1nui(ai-1) - ui(ai) Where, a0=s and for every 1≤i≤n,…
Q: assy invested $1000 at 12% simple interest, calculate its value after 5 years
A: Introduction: The future value can be calculated by adding all the interest amounts of 5 years with…
Q: The law of supply-and-demand is an important principle in economics. If the price of a product…
A: The law of supply and demand combines two fundamental economic principles describing how changes in…
Q: 3. The length of the workday is 12 hours and the original rate of surplus value is 100%. Suppose the…
A: Surplus value is the excess value manufactured by the labor of workers over the wages paid.
Q: From a spending model perspective, explain the causes and dynamics of a recession
A: ANSWER: Recession:- Downfall of the economy because of slowing down of economic activities in a…
Q: What should be the value of a so that Player 1 will have a dominant strategy? PLAYER 2 C D (2,4)…
A: Strategic dominance can be understand as any player will choose the best/better strategy…
Q: 7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the…
A: CPI, consumer price index measures the cost of market basket of goods and services consumed by the…
Q: Down payment Annual payments Years Discount rate plan A 1.297.19 5.342.38 20 12% What is the present…
A: Here we are given the annuity, we will fid the present value of annuity using the present value of…
Q: D 1 2 B 4 5 5 7 B 9 D 1 2 3 4 5 6 7 8 9 0 1 A Hammers Price Fixed Costs Quantity 90 91 92 93 94 95…
A: Fixed Costs: It is cost which remains constant. In the other words, It remains the same regardless…
Q: Loan servicing includes a number of responsibilities such as collecting monthly mortgage payments…
A: Loan Servicing is defined as the administrative services and costs that the lender incurs from the…
Q: For the below ME alternatives, which machine should be selected based on the PW analysis. MARR=10%…
A: Repeatability Assumption is used when the machines have unequal lives. The comparison of the PW of…
Q: A7. Consider the basic Solow model with production function Y = ment growth. Which of the following…
A: The Solow Growth model is an exogenous growth model that explains the impact of change in the…
Q: Suppose that the table shows combinations of bicycles and tents that the economy of Outdoorland can…
A: Opportunity cost is the cost that a producer gives up of a commodity in order to get one extra unit…
Q: A firm’s marginal revenue function is ?? = −9? + 126. Use indefinite integrals to solve for the…
A: The additional total revenue produced by increasing product sales by 1 unit is known as marginal…
Q: A fixed capital investment of P17,555,347 is required for a proposed manufacturing plant and an…
A: A payout period refers to be used to describe the time frame during which a project or investment is…
Q: What are the different income-distribution patterns? How does income distribution in the economies…
A: In economics, income distribution protects how a country's total GDP is distributed amongst its…
Q: Blue Origin must decide about entering the space travel market but ignores if SpaceX, the monopolist…
A: In space travel market there are 2 competitors: SpaceX and Blue origin (monopolist in this sector)…
Q: Acme Distributors has an annual demand for an airport metal detector of 1,575 units. The unit cost…
A: When more goods or materials are purchased, a customer is given an incentive called a quantity…
Q: A chemical processing corporation is considering three methods to dispose of a non- hazardous…
A: Given There are three alternatives and each alternative has different expected lives. To perform…
Q: jamie has $100 that he can spend on milk and gas. A gallon of milk costs $5. However, government…
A: The indifference curve for linear preferences is straight line sloping to downward to right. The…
Q: Maintenance money for a new building has been sought Mr. Kendall would like to make a donation to…
A: Given EOY Maintenance cost From 1 to 5th year P40,000 per year From the 6th to 10th year…
Q: a fiscal gap and a generational gap
A: The time bomb caused by social security and Medicare creates both a fiscal as well as a generational…
Q: A and B are based on the following data, which are for a pumpkin farmer who can hire pumpkin pickers…
A: Marginal cost is the increase in cost incurred from hiring an additional picker. Value of marginal…
Q: d. Consider the following scenarios: Variable Cost/Book Access Price Demand Scenario 1 $6 $46 2,500…
A: Profit refers to the difference between the total revenue and total costs . Total Revenue = Price *…
Q: Penelope utility function is U (a, b) = a+ 10b−b2, where a is the amount of apples consumed and b is…
A: Utility function : U (a, b) = a+ 10b−b2 Income = 100 b pounds on banana cost = b2 1 pound of banana…
Q: Some people argue for protectionism by pointing out that other countries with whom we trade engage…
A: Protectionist measures by countries could be in form of tariff and non tariff barriers. One such, as…
Q: True or false? The European Union seeks to reduce its regional economic disparities by having…
A: European Union (EU) refers to an economic and political partnership that depicts a unique form of…
Q: A housewife bought a brand new washing machine costing Php 15,000 if paid in cash. However, she can…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Globalization makes new forms of consumption possible, but the effects of globalization on an…
A: The term "globalisation" refers to the increasing interdependence of the economies, population and…
Q: Mars Ltd. Invested $321 at 2.5% interest rate which compounds quarterly. Calculate the value after 7…
A: Introduction: It is given the invested amount is $321 and the interest earned on this investment is…
Q: Refer to the figure. If the firm is in a competitive market. What will the firm do in the short…
A: A competitive firm is a price takers, they have no control over the market price. This is so because…
Q: why can a monopoly earn economic profits in the long run?
A: A circumstance where the seller can make more than usual earnings is known as a supernormal profit.…
Q: A new antitheft system incorporating MEMS technology is being separately evaluated economically by…
A: Present value, is a calculation that actions the value of a future amount of cash or stream of…
Q: If the reserve requirement is 10% and we want to increase the money supply by $50 billion, the Fed…
A: Reserve Requirement = 10% Increase in Money Supply = 50 billion
Q: Suppose the government of the island has decided to make tomatoes more affordable to consumers by…
A: The concept is based on the interaction of the supply and demand curve in which supply is an…
Q: Sherry loves sandwiches and lemonade. Her utility functions is U (s, l) = min{s2+ 2l2, 2s2+l2},…
A: Utility function : U (s, l) = min{s2 +2L2 , 2s2 +L2 }, Optimal consumption point for a consumer is…
Q: In an expansion, holding everything else constant, a previously existing budget surplus will…
A: Expansion is a phase in the business cycles when the economy experiences high business activities.…
Q: A firm is producing 20 units with an average total cost of $25 and marginal cost of $15. If it were…
A: Introduction: Average cost to produce 20 units are $25 so the total cost can be derived by…
Q: The CTO of a pharmaceutical firm will install one of two mechanical devices to reduce costs. Both…
A: IRR is defined as the method of capital budgeting which helps investors to take decisions that are…
Q: To affect the market outcome, a price floor A) must be set above the black market price. B) must be…
A: The price floor is a type of government involvement in which the government imposes a minimum price…
Q: How might price controls on gasoline lead to human fatalities in an area where there is an oncoming…
A: When there is a price cap in the market due to a storm, the price will be set below the equilibrium…
Q: 1. Draw the labor market equilibrium diagram and the saving-investment diagram. a. Consider an…
A: Labor Market Equilibrium is defined as the state in which the demand for labor from firms equals the…
Q: How can we increase the Savings and Investment of US citizens? Write in four or more paragraphs.
A: Savings refers to that part of the total income which is not spent by the consumers on purchase of…
Q: Calculate the elasticity of demand for the demand curve p = 100 - 2q at each of the following price…
A: To determine changes in the quantity required of a good as a result of price changes, the price…
Q: Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of 40…
A: deadweight loss refers to the difference in production and consumption of any given product or…
Q: What would happens to the quantity demanded if the price of bottled water rose from $1.00 to $1.50?…
A: The point of equilibrium lies at the point where the supply curve intersects the demand curve or the…
Q: Suppose a bond issued by the European Central Bank and denominated in euros pays 4% per year. Today…
A: The two main factors that propel the economy are money and banking. People can transact using money,…
Know key terms: Explain in your own words (not google) the following:
-LRAS
-Aggregate Demand
-Aggregate Demand Curve
Step by step
Solved in 2 steps with 2 images
- What are the factors other than price that can shift aggregate demand curve interms of investment and consumption? Also explain graphically.define Aggregate Demand, give a couple of examlples tied to todays current events (a couple paragraphs)Economics 3040 Intermediate Macro HW4: An Adverse Demand Shock For all graphs label: both axis, all lines or curves, and all equilibrium values. Also be sure that the direction of shifts in lines and changes in equilibrium values are clear. Your graphs should be large enough to easily interpret. Turn in your graphs on paper at the beginning of the March 26th class meeting. (1) Sketch a graph of the goods market (AD-SRAS-LRAS) and a graph of the labor market with both markets initially in long run equilibrium. Label the initial values of real GDP, the price level, employment, and the nominal wage. Now show the effect of an adverse demand shock on both graphs and label the new values of all variables. (2) Sketch a graph of the goods market initially in a recession. Label potential real GDP, real GDP in the current recession, and the current price level. Also label the recessionary gap. Now show how an increase in government spending may end the recession. (3) Sketch a graph of the goods…
- Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. In your answer, explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demandor factors that shift Aggregate Demand curve.Connect assignment O es Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the following graph. Output Demanded (Aggregate Demand) Output Supplied (Aggregate Demand) Price Level 600 100 Price Level (average price) Instructions: Use the tools provided 'AD' and 'AS' to plot the aggregate demand (AD) and aggregate supply (AS) curves. Plot only the endpoints of each line (plot 2 points for each line-4 points total). Both curves are assumed to be straight lines. 900 800 700 600 500 400 300 200 100 0 0 $700 100 Aggregate Supply and Demand 200 $800 100 900 900 900 900 90 900 900 700 Real Output (quantity per year) Instructions: Enter your response as a whole number. a. What is the equilibrium price level? $ Tools AD D AS e b. What curve (AD or AS) would have shifted if a new equilibrium were to occur at an output level of 600 and a price level of $600? O AS would have shifted to the right. O AS would have shifted to the left. O AD would have…37.6% R Give Up? O Hint ment Score: Resources Chec on 5 of 15 <. In 2013, Prussia's aggregate demand curve was determined by the equation M +0= 4%. A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation M +6= 7%. Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph. Which of the factors could have resulted in the change in 14 aggregate demand seen between 2013 and 2014? 13 O an improvement in technology 12 11 an increase in imports 10 a decrease in oil prices 8. AD 2013 O higher consumer confidence 7. 5. -3 -2 -1 3. 6. 10 Real GDP growth rate F12 AD 2014 4. 6, 4. Inflation rate
- Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. Then explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demand or factors that shift Aggregate Demand curve.2) What is the difference between the long-run aggregate supply and the short-run aggregate supply curves? Draw graph.Price Level Aggregate Supply Aggregate Demand 90 3,000 3,500 95 3,000 3,000 100 3,000 2,500 105 3,000 2,200 110 3,000 2,100 Table 1. Sketch an aggregate supply and aggregate demand diagram. What is the equilibrium output and price level? If aggregate demand shifts right, what is equilibrium output? If aggregate demand shifts left, what is equilibrium output? In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?
- Amount of Real GDP Demanded, Billions $100 $ 200 $300 $ 400 $ 500 Price level 350 a. Use the data above to graph the aggregate demand and aggregate supply curves. Instructions: (1) Use the tools provided AD' and 'AS' to draw the aggregate demand and aggregate supply curves (plot 5 points total for each curve). To earn full credit for this graph, you must plot all required points for each curve. (2) Use the tool provided Eq' to indicate the equilibrium price level and the equilibrium level of real output. 300 250 200 150 100 50 Price Level (Price Index) 300 250 200 150 100 Amount of Real GDP Supplied, Billions $ 450 400 300 200 100 100 200 300 400 500 600 700 Real domestic output (billions of dollars) bition Tools AD Eq AS Instructions: Enter your answers as a whole number a. What are the equilibrium price level and the equilibrium level of real output in this hypothetical economy? Equilibrium price level= Equilibrium level of real output $[ billion is the equilibrium real output also…Create a graph for a short-run aggregate supply curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis In your answer, explain why there is a direct relationship between the price level and real GDP. Use your graph to illustrate your explanation. Also, discuss determinants of Aggregate Supply or factors that shift Aggregate Supply curve. (200 to 300 words) .Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand diagram. What is the equilibrium output and price level? If aggregate demand shifts right, what is equilibrium output? If aggregate demand shifts left, what is equilibrium output? In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?