Macroeconomics (Book Only)
12th Edition
ISBN: 9781285738314
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 13, Problem 7WNG
To determine
Complete the table.
Expert Solution & Answer
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Students have asked these similar questions
10
1. Given In Qda = 2.35 – 0.12 In Pa - 0. 25 ln Y
+ 0.18 In Pb – 0.26 ln Pc, (all in logarithmic
form), which of the following is correct?
Note: Qda is the quantity demanded for
product “a", Pa is the price of product "a", Pb
is the price of product "b", Pc is the price of
product “c" and Y is the income, In means
natural logarithm.
A. the demand for product "a" is price
inelastic
B. the demand for product "a" is price
elastic
C. a 1% increase in the Pa will cause a 0.12%
decrease in the demand for product "a"
D. A and Care correct
E. B and C are correct
2. Given: In Qda = 2.35 – 0.12 In Pa - 0.
25 In Y + 0.18 ln Pb – 0.26 ln Pc, (all in
logarithmic form), which of the following is
correct? The definition of the variables are
found in #1.
A. product "a" and product "b" are
substitutes
B. product "a" and product “b" are
complementary
C. a 1% increase in the Pb will increase the
demand for "a" by 0.18%
D. A and C are correct
E. B and Care correct
Aggregate Supply
Aggregate Demand
Price Level
rGDP
Price level
rGDP
115
620
100
660
640
120
110
650
125
660
640
120
130
680
130
630
140
700
140
620
150
712
150
610
160
722
160
600
170
730
170
590
You may find the “Centauri 2112" Excel file useful in your efforts.
The AI that runs your actuarial department has calculated that, at any price level, Centauri's aggregate
demand has the equation AD = 0.75(Y – T) + G, where Y is real GDP, T is total taxes, I is investment and
G is government spending. Everything is measured in billions of 2099 Cents (denoted C). The
government reports that taxes are T = 60 and government expenditures are G = 205.
a) By how much will a 10-Cent decrease in taxes T increase Aggregate Demand?
b) By how much will a 10-Cent increase in government spending G increase Aggregate Demand?.
c) Which policy is a more effective way to change Aggregate Demand?
d) Determine a policy that will return the Centauri economy to its long-run equilibrium. That is,
figure out a…
Chapter 13 Solutions
Macroeconomics (Book Only)
Ch. 13.1 - Prob. 1STCh. 13.1 - Prob. 2STCh. 13.1 - Prob. 3STCh. 13.3 - Prob. 1STCh. 13.3 - Prob. 2STCh. 13.3 - Prob. 3STCh. 13.3 - Prob. 4STCh. 13 - Prob. 1VQPCh. 13 - Prob. 2VQPCh. 13 - Prob. 3VQP
Ch. 13 - Prob. 4VQPCh. 13 - Prob. 5VQPCh. 13 - Prob. 1QPCh. 13 - Prob. 2QPCh. 13 - Prob. 3QPCh. 13 - Prob. 4QPCh. 13 - Prob. 5QPCh. 13 - Prob. 6QPCh. 13 - Prob. 7QPCh. 13 - Prob. 8QPCh. 13 - Prob. 9QPCh. 13 - Prob. 10QPCh. 13 - Prob. 11QPCh. 13 - Prob. 12QPCh. 13 - Prob. 13QPCh. 13 - Prob. 1WNGCh. 13 - Prob. 2WNGCh. 13 - Prob. 3WNGCh. 13 - Prob. 4WNGCh. 13 - Prob. 5WNGCh. 13 - Prob. 6WNGCh. 13 - Prob. 7WNG
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