In the graph you've just made, what is equilibrium real GDP and the price level if aggregate demand is AD₂? Equilibrium real GDP is $ trillion and the price level is 110
Q: Price Level SRAS1 x Ye AD Real National Output If the economy is at the full employment equilibrium…
A: Financial market:It is a market where there is buying and selling of financial securities. It…
Q: If country A uses all of its resources efficiently, it can produce a maximum of 100 units of good X.…
A: Production possibility frontier or PPF shows the different combinations of two goods that can be…
Q: If a nominal interest rate of 8% is compounded continuously, determine the unknown quantity in each…
A: Present worth, also known as present value, is a financial concept used to evaluate the current…
Q: QUESTION 1 For the utility function U = Qx0.50Qy(1-0.50) and the budget 122 = 8Qx + 14Qy find the…
A: The utility function is given as The budget is given as The price of X is increased by a factor of…
Q: According to the midpoint method, the price elasticity of demand for apples between point X and…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: 1. Working with Numbers and Graphs Q1 The following table shows the income distribution of an…
A: Lorenz curve is a graphical representation of income inequality. Basically it plots the percentiles…
Q: QUESTION 4 Economics is a that studies how physical science: people make decisions; scarcity social…
A: Economics, as a social science, delves into the examination of how individuals, businesses, and…
Q: Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all…
A: Marginal Utility: The additional satisfaction or pleasure a consumer derives from consuming one more…
Q: Lc denote labor hours dedicated to fishing or gathering coconuts, respe inson's technological…
A: Robinson is trapped on an island and can produce Fish (F) or coconuts (C) with his time. LF is labor…
Q: What would be the likely impact of an increase in the price of petrol on the market for pizzas in…
A: Price basically refers to the monetary value of the goods or services that is sold in the market.…
Q: Consider the economy represented by the aggregate supply-aggregate demand graph below, which is…
A: Monetary policy is an essential tool used by the central banks of countries to regulate a nation's…
Q: Suppose the interest parity condition holds and that the domestic interest rate is less than the…
A: The interest parity condition is a fundamental concept in international finance that links interest…
Q: Mark launders his white clothes using the production function q=4B+G, where B is the number of cups…
A: Marginal Rate of technical substitution : Rate at which one factor of production is decreased in…
Q: The table provides data on a market demand schedule (top two rows) and a firm's average and marginal…
A: A shutdown point is the point where the marginal revenue of the firm becomes equal to the variable…
Q: Evaluate the effects of reducing the tariffs in all countries on the world welfare of consumers,…
A: Global commerce resembles a global symphony, with countries trading goods and services at their own…
Q: decrease in autonomous consumption will 1) shift the aggregate expenditure function…
A: Autonomous consumption implies the consumption expenditure incurred by an entity on products and…
Q: Identify the returns to scale in the functions below. Production Function a. q 3L + 2K Returns to…
A: The production function shows the relationship with the input used and output produced.There is…
Q: Refer to Table 13-11. Which firm is experiencing diseconomies of scale? Ca. Firm B only Ob. Firm A…
A: There is economies of scale when the long run average total cost is decreasing. There is constant…
Q: The equilibrium level of real GDP is $ Real GDP Consumption (C) $6,200 6,850 7,500 8,150 8,800 B…
A: Real GDP, also known as Gross Domestic Product, is a measurement that captures the total value of…
Q: Question 23 Figure 6-5 Price Quantity Refer to Figure 6-5. The section of the demand curve labeled…
A: Demand curve shows different combinations of price and quantity demanded.
Q: A dairy business jointly produces butter and cheese from a "fixed" amount of milk as shown in the…
A: Economic profit:The economic profit is calculated by subtracting all cost that is incurred in an…
Q: Hypothetical data is given for the following countries. Calculate real growth per capita in the…
A: To calculate the real growth per capita, we need to use the formula:Real growth per capita = Real…
Q: e tax places a wedge between the price buyers pay and the price sellers receive. PRICE (Dollars per…
A: Demand :Demand is when a consumer has the desire to buy something at the price that he is ready to…
Q: Price level P₁ Figure 14-4 Y₁ Goods and Services Market Refer to Figure 14-4. An unanticipated shift…
A: While making monetary policy choices, central banks constantly monitor business expectations in…
Q: Give an example of a market supply and demand curve. Describe the market and show the relationship…
A: Market supply is the total supply of the market. Adding individual supply curves shall give us…
Q: What is the level of net benefits when zero units are produced? Number Units Produced 0 1 2 3 4 5…
A: Net benefit is the difference between total benefit and total cost. i.e., Net benefit = Total…
Q: B Qb (C) Qb-Qd Price (D) Qa P₁ Pa P₂ Po igure above shows a market with a negative externality. he…
A: The graph depicts that there is a negative externality in the production. The marginal social cost…
Q: Instead, suppose the government taxes bucket hats. The following graph shows the annual supply and…
A: The government imposed taxes on windbreakers. A $30 tax is levied, which shifts the supply curve…
Q: Suppose that people consume only three goods, as shown in this table: 2020 Price Quantity 2021 Price…
A: Consumer Price Index Inflation (CPI Inflation) measures the % change in the price range of certain…
Q: Question 24 A short-run relationship between firm output Q and total cost TC is given in the table…
A: Total cost is the sum of total fixed cost and total variable cost. Fixed cost are the cost that…
Q: The graph's yield curve represents yield curve. Based on the yield curve shown, which of the…
A: The Treasury yield curve or yield curve is the graph depicting the yields of fixed-income Treasury…
Q: The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the…
A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…
Q: If banks increase their holdings of excess reserves a. the money multiplier increases and the money…
A: - Excess Reserves: Extra funds held by banks above their required reserves.- Money Multiplier: The…
Q: The following are selected statistics for a given year in a hypothetical economy: Nominal GDP $500…
A: GDP refers to the total monetary value of all final goods and services that a nation can produce in…
Q: If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market…
A: Demand refers to the quantity of a good or service that consumers are willing and able to purchase…
Q: Which of the following statements is TRUE? A) A monopoly cannot set price and quantity such that…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: Cost/Unit $30 $23 $20 $18 $10 25 ATC₁ 30 ATC₂ X 40 ATC3 45 ATC4 Output
A: Long run average cost : The long run average cost curve is the locus of the minimum point of all…
Q: The following graph gives the demand (D) curve for satellite TV services in the fictional town of…
A: A monopoly firm produces at the intersection of MR and MC curves. When ATC keeps decreasing as…
Q: Three consumers have personal tastes for drinks at the Crunkleton. The Crunkleton Cocktail Bar…
A: A production function is an equation in economics that describes the relationship between the…
Q: Two mutually exclusive alternatives are being considered for a site equipment at a petroleum…
A: Discounted annual worth (DAW) is a financial metric used in capital budgeting and financial analysis…
Q: The effect of a positive externality is similar to: A supply curve (marginal social cost)…
A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…
Q: In recent years, the price of internet data has led to widespread anger in South Africa. Devise a…
A: Monopolies:A market structure where a single company dominates and controls the entire supply of a…
Q: Discuss the differences between long-term and short-term economic growth. What are the determinants…
A: A hike in the manufacture of products and services in an economy relative to one period of time…
Q: Anne has a job that requires her to travel three out of every four weeks. She has an annual travel…
A: The budget line is a graphic representation that shows the possible relationship between the costs…
Q: The graph shows the demand curve for U.S. dollars. Draw a new demand curve that shows the effect of…
A: The relationship between the cost of an item or service and the quantity demanded over a specific…
Q: As the Japan/U.S. exchange rate falls from 100 yens per dollar to 90 yens per dollar, 1)…
A: Exchange Rate:An exchange rate is the value of one country's currency in terms of another currency.…
Q: The price of oil is currently over $80 per barrel and has been as high as $90 per barrel after Saudi…
A: Equilibrium refers to a state where the supply of a good or service matches its demand, resulting in…
Q: Hours of Studying 2 3 4 Ob. 5. OC. 4. d. 2. 6 18 14 19 23 26 Jose 14 10 18 28 32 35 Paul Marisol 4 9…
A: Marginal revenue:Marginal revenue is the additional unit that is added to the total revenue. It is…
Q: The accompanying table lists the foreign exchange rate between U.S. dollars and British pounds (GBP)…
A: Here as we are provided exchange rate as (dollars / pounds), it implies that: at the date where…
Q: The tax burden on households is $30 O $5 $10 $15 $20 10
A: A sales tax is paid to the government on every unit that is sold in the market.Tax creates a rift…
Step by step
Solved in 3 steps
- 1. Referring to the figures below, 1.0 gdp-gth 80 BPERMITS-YOY 0.8 60 0.6 - 0.4 40 0.2 20 0.0 -0.2 -20- -0.4 -0.6 -40 rel. vol. = 9.4 --0.8 -60 -1.0 1970 2000 2010 1960 1980 1990 2020 -8 -6 -4 -2 2 4 6. 8. TIME (year) LAG (quarters) Source: FRED/BEA characterize the relationship between the growth rate of GDP and the growth rate of building permits (BPERMITS-YoY) in terms of the following items: • Timing. • Direction. • Volatility. Include a brief description of each item in this list in your characterization. RATE (%/year) CROSS CORRELATIONProduction Year 2 50 120 Year 1 $1.00 $0.60 Year 2 $1.20 $0.60 Year 1 Good X 50 Year 3 60 Year 3 $1.20 $1.00 Good Y 100 140 1-Assume that this economy produces onlytwo goods Good X and Good Y. The value for this GDP in year 1 is 2-Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3 is 3-Assume that this economy produces only two goods Good.X and Good Y. The value for this economy's nominal GDP in year 2 is 4-Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is 5-Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 1 is 6- Assume that this economy produces only two goods Good X'and Good Y If year 1 is the base year, the value for this economy deflator in year 2 is 7-Assume that this economy producesonlytwo goods Good Iand Good YIf year…Table 1 contains price and quantity information for two products produced by Apple,the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were producedin the United States.Table 1: Apple Products 2016 2017 Price Quantity Price QuantityiPhone $1,200 300 $1,250 400Apple Watch $500 800 $650 850 Calculate the amount contributed by Apple to nominal U.S. GDP from the salesof the two products in 2016 and 2017. Calculate the amount contributed by Apple to real U.S. GDP from the sales ofthe two products in 2016 and 2017. Determine the growth rate of nominal GDP (if Apple were the entire economy). Determine the growth rate of real GDP (if Apple were the entire economy). Use the shortcut you learned to convert between real and nominal growth ratesto determine the growth rate of prices. Is the increase in nominal GDP due to a change in…
- The table below showsa country's potential Gross Domestic Product (GDP) and true GDP. 1970e 19754 1980 GDP 2,500- 3,5004 4,5004 5,500e 6,500e 7,500- 8,500- Year 1985e 1990- 1995e 2000 Potential (billion) KDNK is 3,890- 4,9814 2,8804 3,988e 7,518e 7,983e 7,850t right(billion) i. Sketch a business cycle based on the data provided above ii. Describe the business cycle. eyear Good A Good B Litres of water Kilos of apples PA X QA Pa X Qu 2018 2t X 100 3t X 400 2019 36X 200 4E X 500 2020 46 X 300 6t X 600 Let P = the per-unit market price: Q- the number of units produced and sold of each of the final goods produced within the nation, in a given year (le. GDP). Let 2018 be the base year. The percentage (%) change in nominal GDP from 2019 to 2020 (regardless of base year) is: OA) 0.85 (= 85%) B) 0.66 (- 66%) O9 0.56 (- 56%) D) 0.76 (- 76%) E) 0.46 (- 46%)able 1 contains price and quantity information for two products produced by Apple,the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were producedin the United States.Table 1: Apple Products 2016 2017 Price Quantity Price QuantityiPhone $1,200 300 $1,250 400Apple Watch $500 800 $650 850 Calculate the amount contributed by Apple to nominal U.S. GDP from the salesof the two products in 2016 and 2017. Calculate the amount contributed by Apple to real U.S. GDP from the sales ofthe two products in 2016 and 2017. Determine the growth rate of nominal GDP (if Apple were the entire economy). Determine the growth rate of real GDP (if Apple were the entire economy). Use the shortcut you learned to convert between real and nominal growth ratesto determine the growth rate of prices. Is the increase in nominal GDP due to a change in…
- Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below:COMPONENTR millionsConsumption expenditure (C) Investment (I)Government spending (G) Exports (X)Imports (Z)DepreciationForeign payment to the rest of the worldForeign payment from the rest of the worldShow all calculations and formulae.9 000 6 500 7 000 1 800 2 400 700 300250 Compute the value for the country’s GDP (Gross Domestic Product) at market price. Determine the value of the country’s NNI (Net National Income) at market price.If it is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate between 2019 and 2020.Q.7.2.5The measure of GDP for economic growth is not always perfect. Describe any two problems that are associated with GDP as a measure of economic growth.Initially, an economy is in long-run equilibrium with a real GDP of $4 trillion. Suppose that increases in marginal tax rates on wages reduce the supply of labor. 1.) Using the line drawing tool, show the effect on the economy. Properly label your new line. 2.) Using the point drawing tool, show the new equilibrium price level and output. Label the point E₂- Carefully follow the instructions above, and only draw the required objects. The situation shown above can be described as OA. secular deflation. OB. demand-side inflation. OC. supply-side inflation. OD. supply-side deflation.The seasonally adjusted data below depict the performance of the economy of the United States in five quarters of 1948-1949. Year/Quarter 1948/Q4 1949/Q1 1949/Q2 1949/Q3 1949/Q4 Time left 0:44:23 Select one: OA 1948/Q4. OB. 1949/Q1. OC 1949/02 OD 1949/Q3 19/04 Annual Percent Change Nominal GDP 1.7 -7.4 -5.2 2.3 -3.3 Annual Percent Change Real GDP The inflation rate in the United States was highest in which of the following quarters? 0.5 -5.4 -1.4 4.2 -3.3
- Year 1995 1996 1997 1998 1999 2000 2001 2002 Select one: What was growth in real GDP in 2001? a. 2.85% Ob. 3.4% C. 5.32% Od. 0.53% 3.28% Nominal GDP (billions) $7,400.6 e. $7,813.2 $8,318.4 $8,781.5 $9,268.6 $9,872.9 $10,208.1 $10,383.1 Real GDP (billions) CPI (1983 = 100) 152.4 156.9 160.5 163.0 166.6 172.2 177.1 179.9Consider the following data for a hypothetical economy that produces two goods, milk and cheese. Quantity Produced Mak (litres) Cheese (kg) 110 121 Year 1 Year 2 Prices Milk (Slitro) Cheese (S/kg) 6 7 66 3 Using year 1 as the base year, the 53 35% increase in nominal GDP may be explained by a % increase in real GDP and a 1% increase in prices (Round your responses to two decimal places)(1) Year 1980 1985 1990 2000 2005 2009 a. $2686.9 Based on the above information, what is real GDP of 2005? b. $126.384 c. $268.69 (2) Nominal GDP, d. $12,638.4 Billions $ 2788.1 4717.5 5800.5 9951.5 12,638.4 14.256.3 (3) Real GDP, Billions $ 5839.0 6849.3 11,226.0 12,987.4 (4) GDP Price Index (2005= 100) 68.9 72.2 88.6 100.0 109.8 <
