The idea of opportunity cost in the enrollment of students in college.

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Answer 1

Question

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.

Economics Concept Introduction

Concept introduction:

Opportunity cost: Opportunity cost can be defined as the cost of a foregone alternative.

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Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

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a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? $ billion b. If the MPC is 0.6, how much does government purchases need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose instead that the MPC is 0.95. c. How much does aggregate demand and government purchases need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and government purchases need to change by $ billion.

Answer 2

Question

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.

Economics Concept Introduction

Concept introduction:

Opportunity cost: Opportunity cost can be defined as the cost of a foregone alternative.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.

Economics Concept Introduction

Concept introduction:

Opportunity cost: Opportunity cost can be defined as the cost of a foregone alternative.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.

Economics Concept Introduction

Concept introduction:

Opportunity cost: Opportunity cost can be defined as the cost of a foregone alternative.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.

Economics Concept Introduction

Concept introduction:

Opportunity cost: Opportunity cost can be defined as the cost of a foregone alternative.

Answer 6

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.

Economics Concept Introduction

Concept introduction:

Opportunity cost: Opportunity cost can be defined as the cost of a foregone alternative.

Answer 7

Chapter 1, Problem 1FT

To determine

The idea of opportunity cost in the enrollment of students in college.

Answer 8

Expert Solution & Answer

Explanation of Solution

The idea of opportunity cost in the enrollment of students in college explains the fact that when the times are tough, the number of students who can afford college will decline. This implies that the opportunity cost of enrolling in a college is very high. On the other hand, some economists argue that when times are tough, the opportunity cost of students attending college is very low. In reality, during recession, the common students face difficulty attending college, which means that the price effect typically dominates.