An economy has a monetary base of 100$ bills. People hold equal amounts of currency and demand deposits. Banks has 20% of deposits as reserves. a. What is the money multiplier? Compute the money supply. b. The central bank decides to increase the money supply by 10%. How much should it increase the monetary base?
Q: (a) Why does structural unemployment happen? Explain the sources of structural unemployment. (b) Of…
A: Structural unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an…
Q: Explain how MRS = MRT is derived for consumers who want to maximize their well-being utility subject…
A: MRS stands for marginal rate of substitution, and it measures the rate at which a consumer is…
Q: Your company is planning to purchase a new log splitter for is lawn and garden business. The new…
A: The rate of return alludes to the addition or misfortune on an investment comparative with how much…
Q: hawhas the 'gig economy' impacted variable and fixed costs for businesses.Illustratewith exmple…
A: The gig economy is a term used to describe the growing economic sector of businesses that rely on…
Q: 6. In a classical economy, the velocity of money is 100 (constant). a. If output is 1000 units and…
A: Quantity theory of money is an economic concept that determines the relationship between money…
Q: 4. Consider a classical economy described as follows: 11 Y = LZK², where L is the amount of labor…
A: The money multiplier is the number of times the monetary base is multiplied to create money supply.…
Q: A recent graduate who wants to start an excavation/earth-moving business is trying to determine…
A: A recent graduate must choose which size of secondhand dump truck to buy for his excavation and…
Q: Zero economic profit for a firm means _____. (Check all that apply.) a it receives no normal…
A: Total revenue determines the amount earned from the quantity produced.Economic costs involve not…
Q: You bought a car 5 years ago for $30,000. This type of car is known to depreciate at a compounded…
A: Depreciation is the wear and tear cost of using an asset.
Q: Question 3 Calculate the marginal revenue for the following: (a) L ii. Total Revenue (Q) = 50³ +…
A: Total Revenue (TR) : The total revenue obtained by a company or companies through product sales is…
Q: Coconuts Fish Rita 12 6 For Rita, the opportunity cost of 1 fish is... Laurent 12 3
A: RITALORENCOCONUTS1212FISH63According to the above table.Rita can produce either 12 coconuts or 6…
Q: Calculate Nick's marginal revenue and marginal cost for the first seven shirts he produces, and plot…
A: Marginal revenue is calculated as the ratio of change in total revenue to change in…
Q: 3. An earthquake: Consider a Solow economy that begins in steady state. Then a strong earthquake…
A: The Solow economy, also known as the Solow growth model, is a neoclassical economic model developed…
Q: Explain the expenditure measure of GDP. What is the underlying assumption of this measure? Provide…
A: The expenditure measure of GDP is one of the three methods used to calculate GDP. It measures the…
Q: W-h-a-t- -c-a-n- -a- -s-t-u-d-e-n-t- -l-e-a-r-n- -f-r-o-m- -i-n-v-e-s-t-m-e-n-t- -p-l-a-n-n-i-n-g-?-…
A: Investment planning refers to the process of setting specific financial goals, identifying suitable…
Q: Question 4 Consider the production function Y = ƒ (L) = e¹¹ (L² − 8) where Y = units of output, L =…
A: Marginal product refers to the additional output produced when one additional unit of input…
Q: A market has N=35 firms each with identical costs C(q)=1q2+70. Demand is QD=200-5p. What will be…
A: Number of firms =35Each firm has an identical cost function as Market demand function To find…
Q: Suppose a firm has the following demand equation: Q(P) = 100 - 30P + 4A Where Q(P) = quantity…
A: In economics, demand is the quantity of a good or service that consumers are willing and able to…
Q: A firm has the following Production Function: Q=3K²L² and w=P₁= $10 r=Px=$90 a) If the profit…
A: Firm production function Wage rate w=$10 and rent r=90Cost minimizing output level is 6300We need to…
Q: Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to…
A: Server 1:Initial cost=50000Net cash flow=35000Life=4 yearsServer 2Initial cost=100000Net cash…
Q: Italy is one of the nations with the oldest vineyards in the entire world and has a long-standing…
A: An argumentative thesis, also known as a persuasive thesis or a claim, is a concise statement that…
Q: On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price…
A: A monopoly outcome is where MR = MC. and a natural monopoly will also produce at the point where MR…
Q: A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment…
A: When an investor invests his money, he expects a return in the future. The duration from investment…
Q: Find the value of Fiscal deficit if the primary deficit is $800 and the Interest payment is $280.
A: Whenever basically the government borrows money for generally spending beyond its earning, it's far…
Q: f a copy center is considering the purchase of a new copy machine with an initial investment cost of…
A:
Q: Chinese firms wishing to purchase American goods and services are ___ in the foreign exchange…
A: Chinese firms wishing to purchase American goods and services need to convert their yuan into U.S.…
Q: What is the cost of operations in the factors of production determines the price such organizations…
A: The value of operations is indeed one of the factors that could influence the price that groups…
Q: Suppose you are given the following information. Autonomous spending is at $3000, government…
A: Aggregate demand refers to the total demand for commodities and services made by all the economic…
Q: State whether each of the following statements is true or false. Justify for all statements and…
A: Tariff refers to the trade protectionism tax imposed on the per unit import. It increase the…
Q: A sobering census report: Americans' meager income gains The Census Bureau reported that median…
A: Income inequality refers to the unequal distribution of income among individuals or households…
Q: 1. What is payback period? Compute the payback period for an investment requiring an initial outlay…
A: Payback period: Payback period is the length of time in which an investment reaches its break-even…
Q: (a) Energy savings are estimated at $4000 for the first year, then increasing by 7% annually. (b)…
A: According to the Question :Life = 5 YearsInterest Rate =10%Energy saving in the first year = 4000;
Q: ive typing answer with explanation and conclusion 20) Which of the following factors is part of the…
A: The microenvironment refers to the specific factors that directly influence an organization's…
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop's…
A: Diminishing marginal product of labour tells that after a certain increasing labour doesn't increase…
Q: Producer Theory A firm has the following Production Function: Q=3K²L² and w=P₁= $10 r=P = $90 a) If…
A: Producer is in equilibrium at a point where the slope of the isoquant is equal to the slope of the…
Q: Game theory is: O a view on the development of children's games and toys. O the analysis of market…
A: Game theory is a branch of mathematics that studies strategic decision-making. It is used to model…
Q: How does the adoption of electric vehicles impact the overall demand for petroleum products and the…
A: Electric vehicles (EVs) and vehicles that use petroleum products like gasoline or diesel are…
Q: Please no written by hand solutions Online shopping attracted a great deal of attention from…
A: With the emergence of disruptive technologies and the increasing popularity of online shopping,…
Q: The data in the table below are for the economy of Nubia. a Complete the AE column. Y T 60 75 90 105…
A: The point at which the supply and demand level of the national income level are equal is considered…
Q: We consider a two-periodendowmenteconomy. Suppose you have the following utility function U (c , c…
A: Dear learner you have posed a question with multiple sub parts, as per our policy we have solved…
Q: Suppose the information in the following table is for a simple economy that produces only the…
A: Real GDP is considered as the value that is calculated after adjusting the overall productivity…
Q: In the short run, a purely competitive firm may earn an above-normal profit (above break-even). In…
A: Due to entry of more firms
Q: What price and output should the firm in the following example choose to maximize profits if MC =…
A: Answer is Option (C) If MC is $2, the profit maximising output is determined at a point where MR…
Q: Lashed is a college student and lives off a budget of $100/week. She spends all of it on Chipotle…
A: Budget she get : $ 100/weekCosts of Chipotle meal : $10Costs…
Q: What is the GDP per capita of a country with a population of 50 million and a GDP of $1.5 trillion?
A: GDP per capita is a measure of the average economic output, or income, per person in a country. It…
Q: Assume a utility function U(x,y) = XY, where Px = $2, Py =$1 and Income = $100. a) Determine and…
A: Disclaimer: - since you asked multipart question, we are solving only first 3 parts as per the…
Q: An owner can lease her building for $140,000 per year for three years. The explicit cost of…
A: Accounting profits are the excess of the company's revenue over its expenses for the year, as…
Q: Supply: Thinking Like a Seller - End of Chapter Problem Suppose there are four gas stations in town.…
A: To calculate the market supply for an individual firm's supply, you need to consider the firm's…
Q: Consider the market (Demand & Supply) for economics textbooks (hard copy). Illustrate (6 Graphs) and…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Suppose Scooter's Scooters is currently producing 500 scooters per month in its only factory. Its…
A: For Blank 1 - SRATC will be $720For Blank 2 - 3 (Three) factoriesExplanation:ATC is $720 where no.…
PLease answer all of the questions that are listed on the attached image.
Thanks!
Step by step
Solved in 3 steps
- 4. Consider a classical economy described as follows: Y = LEK, where L is the amount of labor and K is the amount of capital. The economy has 10,000 units of labor and 10,000 units of capital. Consumption (C): 5,020-100r, Investment (I): 2,000-100r, Taxes (T): 2,500, Government Purchases (G) :3,000 a. Compute the total production and find the equilibrium interest rate. b. Compute private saving, government saving, and national saving. c. Now suppose that G is reduced by 10. Find the new equilibrium interest rate. What happens to consumption, private saving, government saving, national saving and investment? 5. An economy has a monetary base of 100$ bills. People hold equal amounts of currency and demand deposits. Banks has 20% of deposits as reserves. a. What is the money multiplier? Compute the money supply. b. The central bank decides to increase the money supply by 10%. How much should it increase the monetary base?Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public saving is 0.2 billion. Assuming the economy is closed, calculate the size of:(i) Consumption (ii) Investment (iii) Government Spending (iv) National Savings b. Explain the difference between saving and investment as defined by a macroeconomist. c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain(i) Your family takes out a mortgage and buys a new house. (ii) You use your paycheque to buy stock in Sagicor Financial Services.b. Explain the difference between saving and investment as defined by a macroeconomist. c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain(i) Your family takes out a mortgage and buys a new house. (ii) You use your paycheque to buy stock in Sagicor Financial Services.
- Suppose the government must increase taxes in order to increase spending. Now assume Congress wants to increase spending on education without decreasing spending somewhere else. For each variable state if it will INCREASE, DECREASE or REMAIN UNCHANGED. In at least one complete sentence state WHY this change will occur. Be specific. Private Saving (Sp): Consumption: (C) Government Saving (Sg) Total Saving: (S) Real Interest Rates: (r) Investment: (I)It is known that the state of the economy of a country X is a consumption function C = 0.8 y + 25 M. Rupiah. Investment driven by the government = 60. M. rupiah Requested: a. Determine the amount of national income. b. Determine the amount of national consumption. c. Determine the amount of national saving d. Draw the curve.Saving = a. disposable income minus taxes b. income minus taxes c. 1 – MPC d. disposable income minus consumption
- Assume that GDP ( y) is 6.000. Consumption (C) is given by the equation C= 600 + 06(Y-T). Investment (I )is given by the equation I=2,000- 100r, where r is the real rate of interest in percent. Taxes (T) are government spending (G) is also 500 a. What are the equilibrium values of C, I, and r? b) What are the values of private saving, public saving, and national saving? ·14. Calculate Equilibrium GDP (Y*) in each of the following situations (IP is Autonomous Planned Investment): (a) C 50+.75(Y-10), IP = 100, G=20, NX = -15. (b) a = 10, MP C = .8, T10, TR= 5, IP=50, G = 40, NX = 0. (c) a = 15, MP C .85, T = 15, TR= 10, IP= 55, G=45, NX = 5. (d) The MPC is 0.75, Autonomous Consumption is 100, Autonomous Planned Investment is 80, Government Spending is 50, Net Exports are -20, Lump-sum Taxes are 50, and Transfer Payments are 20.Explain the difference between saving and investment as defined by macroeconomist. Which of the following situations represent investment? Saving? Explain. a. Your family takes out a mortgage and buys a new house. b. You use your €500 wage payment to buy stock in BP. c. Your flatmate earns €200 and deposits it in her account at a bank. d. You borrow €5.000 from a bank to buy a car to use in your pizza delivery business.
- Explain the difference between saving and investment as defined by a macroeconomist. Which of the following situations represent investment and which represent saving? Explain.a. Your family takes out a mortgage and buys a new house.You use your $200 paycheck to buy stock in Africel.Your roommate earns $100 and deposits it in his account at a bank.You borrow $1,000 from a bank to buy a car to use in your pizza delivery business.The interest rate is 7 percent. Use the concept of present value to compare $200 to be received in 10 years and $300 to be received in 20 years.A company has an investment project that would cost $10 million today and yield a payoff of $15 million in 4 years.Should the firm undertake the project if the interest rate is 11 percent? 10 percent? 9 percent? 8 percent?Can you figure out the exact cutoff for the interest rate between profitability and nonprofitability?1. Given the following table. Income (RM million) Consumption (RM million 100 100 150 200 200 300 250 400 300 500 350 а. How much is the autonomous consumption in the economy? b. How much investment should be increased to achieve an income of RM400 million? c. Calculate the MPS. d. Derive the consumption function.Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 B. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C. 4 D. 5