Suppose gold (G) and silver (S) are substitutes for each other because both serve as hedges against inflation. Suppose also that the supplies of both are fixed in the short run(Q = 90 and Q = 300) and that the demands for gold and silver are given by the following equations:PG = 990 - Qg +0.50PSandPs = 630 -Qs +0.50PGWhat the the equilibrium prices of gold and silver?The equilibrium price of gold is $ 1420 and the equlibrium price of siliver is $ 1040. (Enter your responses rounded to two decimal places.)What if a new discovery of gold doubles the quantity supplied to 180? How will this discovery affect the prices of both gold and silver?The equilibrium price of gold will be $ and the equlibrium price of siliver will be $

The given information is the following.

Answered: Suppose gold (G) and silver (S) are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The US economy is at full employment when the world oil price Question list K Question 6 Question 7 On an AS-AD graph, show the effect of the world oil price fall on the US macroeconomic equilibrium in the short run Explain the adjustment process that restores the economy to full employment Question 8 Question 9 The graph shows the US economy at a full-employment equilibrium Draw a curve to show the effect of a fall in the world price of oil Label it either AD, for a new AD curve or AS, for a new AS curve. Draw a point at the new short-nun macroeconomic equilibrium. Along the adjustment path back to full employment with no change in monetary policy or fiscal policy, the money wage rate will and aggregate OA fall demand will increase Quention 10 Ов. 5, supply will increase OC. rise, supply will decrease Question 11 OD. se demand will decrease Question 12 Question 13 100- Price level (CDP price index 2012-100) Potential GUP 110 AD AS G Real GDP Billions of 12 colues) >>> Draw only the…
Without prices to coordinate supply to demand, technocrats and central planners must use statistics. What is one thing that prices capture that statistics cannot? Prices capture quantitative information O Prices capture macroeconomic fluctuations O Prices capture the historical movements of supply and demand Prices capture future expectations
Explain briefly three important reasons why firms have sticky prices in the short run. Given an example of a price that is sticky in the short run but flexible in the long run.
When incomes rise, imports tend to a) behave in an unpredictable manner b) fall c) rise d) stay the same
Please help me with the graph
Which economic condition would most likely be experienced if aggregate supply shifts from AS to AS2 as in the graph below?
Improved methods of inventory control were supposed to reduce fluctuations in inventory stocks. It is clear that these methods have helped reduce the equilibrium inventory/sales ratios in both the manufacturing and trade sectors over the past decade. Yet we find that during the 2001 recession, inventory investment accounted for more than the total decline in real GDP, the first time that had happened since 1949. Explain whether this result is due to a set of odd coincidences, or whether the improved methods of inventory control actually caused bigger fluctuations in inventory investment relative to final sales.
on Indicate whether the following factor will affect aggregate demand (AD) or aggregate supply (AS) and whether the effect would be an increase or a decrease. Then indicate what will happen to the price level and the level of Real GDP and what type of equilibrium will result assuming that the economy is initially in long-run equilibrium. a) A decrease in the nominal wage rate. b) A decrease in exports. c) A decrease in the exchange rate. d) The discovery of vast new oil field in AD no effect decrease + increase no effect AS increase no effect increase increase decrease decrease decrease Real GDP increase decrease increase increase Equilibrium recessionary gap ⇒ inflationary gap inflationary gap inflationary gap AP ? Q Fir

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