Which of the following is an example of contractionary fiscal policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. decreasing the money supply a increasing the interest rate increasing government spending d increasing taxes b.

Q: 32. A factory has production capacity of P12,000 units per month with an efficiency of 80% Fixed…

A: When money produced from a commercial activity exceeds the expenditures, costs, and taxes involved…

Q: If two persons are trading in two different categories, he would get best output from one and a…

A: Trade refers to a core economic concept that is basically the buying and selling of commodities and…

Q: Why is the American economy called a mixed economy?

A: A mixed economic system is defined as a economic system in which there are features of both…

Q: The only owner-supplied input in a corporation is its equity, which is the value of the…

A: ANSWER: OPTION C(incurred an economic loss of $30,000). EXPLANATION: ECONOMIC PROFITS : *It is…

Q: 8-33 The owner of a downtown parking lot has employed a civil engineering consulting firm to advise…

A: PLEASE FIND THE ANSWER BELOW.

Q: The maximum possible weekly average product of labor in the plant is

A: Formula for average product/output: Average product = Total product / Number of worker

Q: Premature-birth Risk Found Higher for Teens (reported in the Sacramento Bee, April 27, 1995, p. A7)…

A: The term "relative risk" refers to the comparison of hazards between two groups, namely the exposed…

Q: Apply incremental B/C analysis at an interest rate of 8% per year to determine which alternative…

A: Given information   A B Initial cost $600000 $300000 Annual M& O cost $50000 $40000…

Q: From the data given below, using the simple average of price relative comput: (i) Index number for…

A: [a]Index number for 1998 when 1995 is base  Items Price Price Relative prices         Rice 5…

Q: Give the formulas for and plot average fixed​ cost, AFC, marginal​ cost, MC, average variable​ cost,…

A: Differentiating the above total cost function with respect to Q, we get the marginal cost function.…

Q: Majdy Corporation purchased a machine 5 years ago for JOD 527,000 when it launched product X.…

A: Sunk cost refers to the transaction costs that cannot be recovered. Once spent, the credit is…

Q: What is the relationship between supply and demand?

A: Supply and demand is an economic model of price setting in a market in microeconomics.

Q: 13. How long will it take for ₱2000 to amount to ₱2,346 if invested at 5% compounded bi-monthly?

A: As given PW = 2000 FW = 2346 Interest rate = 5% compounded bi monthly.

Q: 34. Skyscrapers Corporation is engaged in the manufacturing of standard wide flange section of steel…

A: Solution- The sky crapper corporation is engaged in the manufacturing of standard wide flange…

Q: Assume an economy without population growth or technological progress. Their production function is…

A: The relationship between capital, savings and population is explained by the Solow growth model

Q: 2. Using the aggregate demand and supply model (AD & AS), begin with an economy in a recession…

A: The total quantity of demand for all completed items and services produced in a given economy is…

Q: 12. Envelope Curve II Consider a perfectly competitive constant-cost industry with n identical…

A: A perfectly competitive industry with a horizontal long-run industry supply curve as a result of no…

Q: During a certain period the consumer price index went up from 150 to 250 and the salary of a worker…

A: Given :  Consumer Price Index of base year = $150 Consumer Price Index of current year = $250 Salary…

Q: Consider the two-period Neoclassical growth model seen in class. Let the utility function take the…

A: Given information Two period neoclassical growth model Utility function U(C)=log (C) Consumption…

Q: An individual needs P 12,000 immediately as a down payment on a new appliance.  Suppose that he can…

A:

Q: Elon Musk's The Boring Company wants to invest in a subway to be constructed in Metro Manila to…

A: maglev bullet difference(in percentage) capital investment 46,100,000 75,000,000 61% annual…

Q: Draw the graph. If the monopoly is a single price monopoly (usual monopoly, as in chapter 10), then:…

A: Monopoly market refers where a single seller exists and sale his products to large Consumer . When…

Q: Discuss the importance of Asia in global business.

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Q: After Ragnarok, output of Asgard is decreased since every god that rules the realm is dead. After…

A: The IS-LM model demonstrates the interaction between the economic goods market and the market for…

Q: We're leaving the competition behind! Cuppy's Coffee Drive Thru Cafe is the only coffee outlet…

A: The market is a location where the transaction of services and commodities takes place. It is…

Q: Other things being equal, an increase in the average product of labor in steel production will…

A: The total output amount which could be produced by a firm with the given labor quantity is being…

Q: Compare the interest earned by $9,000 for six years at 7​% simple interest with interest earned by…

A: Simple interest and compound interest are earned on initial amount deposited but with sufficiently…

Q: Can excess profit be earned in the olipolistic industry in the long run. Explain.

A: There are certain barriers to the entry of new firms in oligopolistic industry. Due to these…

Q: A circus is scheduled to appear in a city on a given date. The profits obtained are heavily…

A: Decision tree is considered to be one of the most useful equipment for classifying and predicting.…

Q: Imagine that in the year 2035, Japan’s economy shrinks significantly, causing a decrease in…

A: The AD/AS model illustrates the Keynesian model of the business cycle. It is possible to forecast…

Q: What amount will be accumulated by a present investment of P18,200 in 6 years at 3% compounded…

A: As given Future worth = 18200 Time period = 6years Interest rate = 3% compounded quarterly

Q: Does free international trade contribute to the global fight on poverty. Discuss.

A: The transfer of services and goods from one entity or person to another, being in exchange for money…

Q: Determine the nominal interest rate compounded continuously corresponding to an effective interest…

A:

Q: Suppose you estimate the folilowing regression model: AW E = 696.7 + 9.6 x AGE where AWE is average…

A: Answer: Given, Regression model: AWE=696.7+9.6×AGEWhere,AWE=average real weekly earningsAGE=age of…

Q: 1

A: The labor force is the summation of unemployed workers and employed workers. The employed workers…

Q: How do you convert a series of nominal economic data over time to real terms?

A: When studying economic statistics, it's critical to understand the difference between real and…

Q: 11. Suppose that the two biggest producers of gold, Bmine and Gmine, form a cartel to set price,…

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Q: Profits are maximized at the output at which marginal cost equals marginal revenue. If the market…

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Q: A doctor could landscape her yard, but it makes more economic sense for her to hire a landscape…

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Q: You operate a cafe which generated total revenue was $60,000. Your costs for rent and supplies were…

A: Implicit cost is an opportunity cost of doing a business. It is referred as non monetary cost.

Q: Create a 2 days plan on how to save money.

A: Savings refers to the cash that an individual has left over once they deduct out their shopper…

Q: P50,000 was deposited on a savings at a rate of 10% per annum for 3 years. What is the compound…

A: As given P = 50000 r = 10% t is time = 3years Compounded interest = P(1+rn)nt - Pwhere r is interest…

Q: Price is NOT a firm decision variable in a( n )  ________ industry. a. oligopolistic b.…

A: Each firm in either market structure, produces with the goal of maximizing profit.

Q: A building has a salvage value of P1 M after 50 years. Annual depreciation is P2 M. Using straight…

A: Given that, the salvage value is  P1 M after 50 years. Annual depreciation is P2M. the solution is…

Q: Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of…

A: The market of car is form of oligopoly market structure where few large firms operating in tye…

Q: Why might the rate of medical inflation differ between countries

A: Medical inflation is just the expansion in the normal or unit cost of a medical care administration…

Q: At the time you are studying the material in this chapter, which phase of the business cycle do you…

A: Business cycles are described as cyclical upswings and downswings in broad economic activity indices…

Q: Consider a perfectly competitive increasing-cost industry with n identical firms. Starting from long…

A: a) n the short run, perfectly competitive firm is all about seeking the quantity in the output and…

Q: Beta Laundry's cost function is C(q) = 60 + 16q +q?. What quantity maximizes the firm's profit if…

A: For a perfect competition the supply curve is given by the equation: Price = Marginal Cost Price = p…

Fiscal Policy and Money Market

Fiscal policy is one of the important tools that is used by the government to control inflation or aggregate demand in the economy. Under this policy, there are two rules which are used by the government, one is the expenditure of the government and the other is the taxation or income of the government which it collects from the public.