George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes.Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve.Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraintUse an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods.The graphs below shows the behaviour of consumption of durables and nondurables, and the employment to population ratio. As part of the government response to the pandemic, the majority of Americans received income assistance in the form of checks as well as an increase in the child tax credit. Given your answer in part (d), is the behaviour of the three macroeconomic variables after the recession (end of gray area) and following the government transfers consistent with what macroeconomic theory predicts? Explain FREDof Chared 201.300LIWBilers of Data3.0002.8002.0002.7002.400FRED2.300Real Personal Consumption Expenditures: Nondurable Goods2911Shaded areas indicate US recessionsLave2012291129122013Personal Consumption Expenditures: Durable GoodsShaded areas indicate US recessions201420132015Source U.S. Dureau of Economic Analysis201420142017Source U.S. Bureau of Economic Analysis201520162010201920192021tred sounsled orgMthed sousted.org2022 FREDMN2013FIM20:30MEINNAARer pleur

Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Answered: George enjoys bananas and leisure. He…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

George enjoys bananas and leisure. He sleeps 8 hours per day. Of the remaining 16 hours, for each hour he works he is paid 2 bananas. He also receives 6 bananas in dividends but has to pay 6 bananas in taxes.

Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.
Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve.
Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint
Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods.
The graphs below shows the behaviour of consumption of durables and nondurables, and the employment to population ratio. As part of the government response to the pandemic, the majority of Americans received income assistance in the form of checks as well as an increase in the child tax credit. Given your answer in part (d), is the behaviour of the three macroeconomic variables after the recession (end of gray area) and following the government transfers consistent with what macroeconomic theory predicts? Explain

FRED
of Chared 20
1.300
LIW
Bilers of Data
3.000
2.800
2.000
2.700
2.400
FRED
2.300
Real Personal Consumption Expenditures: Nondurable Goods
2911
Shaded areas indicate US recessions
Lave
2012
2911
2912
2013
Personal Consumption Expenditures: Durable Goods
Shaded areas indicate US recessions
2014
2013
2015
Source U.S. Dureau of Economic Analysis
2014
2014
2017
Source U.S. Bureau of Economic Analysis
2015
2016
2010
2019
2019
2021
tred sounsled org
M
thed sousted.org
2022

FRED
M
N
2013
FIM
20:30
MEINNAARer pleur

Expert Solution

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Draw George’s budget constraint (put consumption on the vertical axis and leisure on the horizontal). Make sure to show the vertical and horizontal intercepts as well as the slope.
Now suppose that George chooses to work 6 hours per day. Find how many hours o f leisure and how many bananas he will consume, and show his optimal choice on the budget line using an indifference curve.
Suppose that the government uses some of the taxes to give back to George income assistance of 4 bananas. Show the impact of the measure on George’s budget constraint
Use an indifference curve to show George’s new optimal allocation and explain what will happen to his consumption of bananas and leisure if both are normal goods.
The graphs below shows the behaviour of consumption of durables and nondurables, and the employment to population ratio. As part of the government response to the pandemic, the majority of Americans received income assistance in the form of checks as well as an increase in the child tax credit. Given your answer in part (d), is the behaviour of the three macroeconomic variables after the recession (end of gray area) and following the government transfers consistent with what macroeconomic theory predicts? Explain

I have answers to sub question 1-3. I need answers for questions 4 and 5

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.