Directions: Answer the following questions using COMPLETE sentences.1. Draw the circular flow of money and then below that explain the flow of money and goods andservices through the product and factor market. Make sure that you also explain the three playersin the economy and how they contribute to this flow.2. Draw the different stages of the business cycle and explain each underneath.

1.In the circular flow model, the economy is simplified into two sectors: households and…

Answered: Directions: Answer the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is likely to be true at the trough of the business cycle? A. Real GDP, unemployment, and inflation are all likely to increase. B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing. C. Real GDP, unemployment, and inflation are all likely to decrease. D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.
1. The advantages of using credit include a) access to more money than one has. b) immediate access to money. c) more money flows into the economy. d) all of the above. 2. In a command economy, the consumer(s) is/are a) private individuals. b) the family or community. c) the government. d) private corporations. 3. Which of the following countries have a mixed-market economy? a) China, North Korea, and Zaire b) Japan, United States, and Canada c) Aboriginal tribes of Australia d) All of the above
Select the correct answer. Which of these is a major effect of innovation? A. job creation B. unemployment C. high inflation D. fewer financial products Select the correct answer. Claire is the head of product design for her company. She has to create the layout for the next generation of smartphones. She has decided to build on ideas from the consumer’s perspective. Which part of the consumer’s expectations should Claire concentrate on? A. to minimize post-sales service B. to minimize product innovation C. to maximize product cost D. to maximize product utility
Only typed answer and please don't use chatgpt Suppose one economist believes the target rate of unemployment is 4 percent while another believes it is 4.9 percent. Using Okun’s rule of thumb, by how much would you expect their estimates of potential GDP to differ in a $9 trillion economy?
What is likely to be true at the peak of the business cycle? A. Real GDP, unemployment, and inflation are all likely to increase. B. Real GDP is increasing, unemployment is decreasing, and inflation is increasing. C. Real GDP, unemployment, and inflation are all likely to decrease. D. Real GDP is decreasing, unemployment is increasing, and inflation is steady or decreasing.
Part 1 - Practice Questions 1. Suppose that a country enacts a tax policy that discourages investment and pushes the savings rate permanently lower from 5₁ to 52. Assume the economy is initially in its steady state. a. Use the Solow diagram to explain how the economy reaches its new steady state. b. Draw a graph showing how output evolves over time with Y on the y-axis and time on the x-axis and explain what happens to growth over time. 2. Explain whether each of the goods below are rivalrous or non-rivalrous. a. An iPhone b. A method for mass producing goods c. The Pythagorean theorem 3. Suppose an economy is currently on a balance growth path as described by the Romer model. For the following scenarios, determine whether the change will affect growth of and/or level of output per person; make use of the two equations noted in experiment #1 and #2 in Lecture 6 to support your answer. Then, using a ratio scale graph, illustrate the initial balanced growth path and the new path caused…
Based on the pictures of the graphs consulted, comment what is expected from the American economy in the next years in general terms. Are there differences in the forecasts? How do you think the state will act in the future based on the chart variables that inform us about its behavior? What will the behavior of families and companies be like? Write in an essay form after all the questions have been answered. Using these graphs provided, Answer the questions in an essay format, comparing the two.
2) Explain why E≡Y and M.V≡P.Q are equivalent to each other but can be used to give different interpretations of how the macroeconomy works.
Why did the Great Leap Forward fail? a. Crop failures and poor planning b. Privatization of companies owned by the government c. US tried to enlarge its influence in Asia. d. The strategy deviated drastically from a similar strategy implemented in the Soviet Union. The demographic dividend has three main effects on economic growth. Which of the following is NOT one of theseeffects?a. mechanical effect c. savings effectb. social effect d. human capital effect

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