Answered: Which MOST likely will increase…

Which MOST likely will increase unemployment in the short run? a. a positive supply shock b. a positive demand shock c. expansionary fiscal policy d.stagflation

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: Fiscal Policy, Incentives, And Secondary Effects

Section: Chapter Questions

Problem 1CQ

See similar textbooks

Related questions

Q: Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100…

A: Detailed explanation: (1). Optimal prices in two markets The monopolist can charge different prices…

Q: 4. Exchange rate crisis The following graph shows the market for euros in terms of the Malaysian…

A: .Ans. ) Given the question, consists of graph that shows the demand and supply of euros.in terms of…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: To determine the profit-maximizing level of output, the firm will produce where marginal cost (MC)…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: Detailed Explanation:Part a:1. Finding Disposable Income (YD):Disposable income is calculated as…

Q: based on the information in the table what is marla's profit margin? marla's smoothie shop total…

A: To calculate Marla's profit margin, we first need to find her profit, which is the difference…

Q: The hand written solution is not allowed please

A: Detailed Solution: Two-Part Tariff for a Monopolist with Two Types of ConsumersProblem:A monopolist…

Q: Imagine that there are two people in one room - Mary and Jane. Mary is smoking cigarettes. The table…

A: Step 1: Step 2: Step 3: Step 4:

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: Let's solve each part of the question step by step: a. Saving Function (S): The saving function is…

Q: Which of the following is an example of a macroeconomic indicator? A)The price of a specific…

A: Macroeconomics is the branch of the economics which studies the overall economy on a large scale,…

Q: k Capital Account Current Account -$2 billion -$537 billion The accompanying table contains data on…

A: The balance of payments (BoP) is a record of all economic transactions between residents of a…

Q: Price $100 86 80 60 00 40 20 D 0 100 200 300 400 500 600 Quantity of Health Care Refer to the graph…

A: The graph depicts a supply and demand curve for healthcare. The socially efficient equilibrium is…

Q: (a) Disinguish beween Impicit and explicit costs (b) Explain any five (5) reasons why some firms…

A: The following is a step-by-step explanation of the response to the aforementioned query.…

Q: A monopolist faces a market demand curve given by Q = 70 – P. The Monopolist’s marginal revenue…

A: Let's break down the solution with examples and explain each step: a. i. To maximize profits, the…

Q: My question is attached below along with the answer from the expert. However, i dont see how the…

A: To solve this problem, we're using the principle of dynamic efficiency for the allocation of a…

Q: When a store cannot get an item due to a lack of supply, it can offer the customer a few options.…

A: Offering an item for free when supply is restored would not be a sustainable approach for the store.…

Q: The hand written solution is not allowed please

A: Let's break down the problem into the three parts: (a) How many widgets are ordered per month?If…

Q: Solve all

A: Given the information provided, let's calculate the new household consumption when the national…

Q: the socially optimal price? place the line segment labled pollution limit In accordance with the…

A: The given graph represents the graph of negative externality. Here the marginal private cost is more…

Q: Show working for each cell so that I can understand it fully

A: A) Using the formulas to fill the table:AVCMCACTFCTVCTCQ80/1 =80100-20= 80100/1 = 10020100-20=…

Q: Chapter 20 Homework 1 Suppose the natural level of output is $50 billion of real GDP and that people…

A: To plot the long-run aggregate supply (LRAS) curve on the graph:Locate the natural level of output…

Q: Give explanation answer step by step and take a like

A: Sure, I can help you solve this economics problem. The scenario described is that you have a budget…

Q: Refer to the information provided in Figure 17.2 below to answer the questions that follow. Price…

A: According to new classical economics, under rational expectations, an expected decrease in…

Q: 36 OF 41 QUESTIONS REMAINING 1 Point The payoff matrix below shows the possible actions and payoffs…

A: Let's look at the choices of Walmart and Target Walmart's choices (highlighted with blue boxes)If…

Q: Price level LRAS D A B ய AS AD, AD₂ AD₁ Real GDP Suppose the economy is currently experiencing an…

A: Please comment down for any doubt. I hope my answer helps you.

Q: At the profit-maximizing output level y*, where P(y) = 4a - 3by and c(y) = 10 + xy + By³ then the…

A: To find the profit-maximising output level, we need to maximise the profit function, which is given…

Q: Answer the question based on the table below. Year Nominal GDP (in millions) GDP Deflator Real GDP…

A: For calculating Real GDP Growth rate in 1990, we must have the information of the following:Real GDP…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: The factor by which the inflation rate has increased is equal to the ratio of P8 to P0. In other…

Q: I need the answers to 3 and 4

A: 3.Based on the scatterplot, consumption and income appear to have a moderate correlation. The data…

Q: er In your current job, you earn $41,000. You take the standard deduction of $12,200. You have an…

A: All the parts are solved properly with detailed explanation.Hope you got your answer. If any query…

Q: The following table lists the marginal cost and marginal private benefit of the electric car market:…

A: Given,Marginal External Benefit: MEB=$10,000This external benefit will be added to the Marginal…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: To calculate the effects of the stimulus program: • Calculate the additional GDP from the government…

Q: 22. Consider Fig. 5, which shows the market demand as well as a monopolist's costs. The total fixed…

A: The monopolist will maximize profit where marginal revenue (MR) equals marginal costs (MC). Form the…

Q: Suppose that the demand for broccoli is given by: Q=1000-5P where Q is quantity per year measured in…

A: 2. Total Expenditure:Step 1: Multiply Equilibrium Quantity by Equilibrium Price:Total Expenditure =…

Q: For each scenario, please decide whether there will be a short-run aggregate supply increase or…

A: A) Short-term decline in aggregate supply: Employers' production costs rise in direct proportion to…

Q: Many Government programs both redistribute income and correct a market failure. What are the market…

A: Government programs often aim to both redistribute income and correct market failures, reflecting a…

Q: The following table provides information about labor supply and the marginal revenue product of…

A: We are given the following table: Let us add the total cost of labor and marginal cost of labor…

Q: x+2y= 6

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

Q: The nearby graph represents the demand curve of an individual consumer of a greeting card's website.…

A: Formula:=(Price-Marginal Cost) x QuantityGiven that the marginal cost is $0.05 (you can see it on…

Q: Question 8 A beekeeper decides to locate her business on a plot of land that is between an apple…

A: Ans. The negative externality is: B. The possibility of the bees stinging the students at the…

Q: What is the proper role of the government in regulating the private sector so people are protected…

A: The rationale behind these regulations is that markets left entirely unregulated may fail to address…

Q: please help me with this question

A: a. To determine absolute advantage, we compare the labor requirements between the two countries.…

Q: Question ONE Suppose the Zambian legislature passes a law requiring that 1 billion Kwacha a year be…

A: (a) The governor should fix the tax rates on items X and Y so that the tax burden is heavier on the…

Q: Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the…

A: A monopolistic competitor firm maximises profit when the marginal revenue equals marginal cost or…

Q: The following table shows levels of real income per person in several economies during the years…

A: 1. Singapore's Fastest Growth:The following provides information on the real income per capita…

Q: The following table compares the completion percentage and interception percentage of 5 NFL…

A: Step 1:Given:Completion PercentageInterception Percentage554.5594.2603.5602.9621.4Step…

Q: Consider the following data regarding students' college GPAs and high school GPAs. The estimated…

A: Recall that the formula for the mean square error is: se2=n1⋅∑(y−yp)2 Where n is the number of…

Q: 2. Suppose that a presidential candidate who promised large personal income tax cuts is elected. Use…

A: If people anticipate a large tax cut in the future, they may adjust their behavior in the present,…

Q: Question 13 0/1.5 points Consider the two-period model. Consumer's have preferences over current and…

A: The slope of the budget constraint in the two-period model is given by -(1 + r), where r is the…

Q: The earnings for flour sales at a convenience store is given below. If Mark produces four bags of…

A: In economics, understanding cost structures is crucial for businesses to make informed decisions…

Question

Which MOST likely will increase unemployment in the short run? a. a positive supply shock b. a positive demand shock c. expansionary fiscal policy d.stagflation

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and longâ€”term impacts of such policies on the economy?
Suppose concerns about the size of the federal budget deficit lead the U.S. Congress to cut all funding for research and development for ten years. Assuming this has an impact on technology growth, what does the AD/AS model predict would be the likely effect on equilibrium GDP and the price level?
What are the components of the aggregate demand (AD) curve?
During the Great Recession of 20082009, what actions would have been required of Congress and the President had a balanced budget amendment to the Constitution been ratified? What impact would that have had on the unemployment rate?
Suppose the U.S. Congress cuts federal government spending in order to balance the Federal budget. Use the AD/AS model to analyze the likely impact on output and employment. Hint revisit Figure 25.6.
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
The short run aggregate supply curve was constructed assuming that as the price of outputs increases, the puce of inputs stays the same. How would an increase in the prices of important inputs, like energy, affect aggregate supply?
Many financial analysts and economists eagerly await the press releases for the reports on the home price index and consumer confidence index. What would be the effects of a negative report on both of these? What about a positive report?
In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers. A large Increase In the price of the homes people own. Rapid growth in the economy of a major trading partner. The development of a major new technology offers profitable opportunities for business. The Interest rate rises. The good imported from a major trading partner become much less expensive.
If Congress cuts taxes at the same time that businesses become more pessimistic about the economy, what is the combined effect on output, the price level, and employment using the AD/AS diagram?