The basic cause of business cycle.

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Answer 1

Question

Chapter 16, Problem 1SQP

To determine

The basic cause of business cycle.

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

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Students have asked these similar questions

Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Exercise 4A firm has the following average cost: AC = 200 + 2Q – 36 Q Find the stationary point and determine if it is a maximum or a minimum.b. Find the marginal cost function.

Answer 2

Question

Chapter 16, Problem 1SQP

To determine

The basic cause of business cycle.

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

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Answer 3

Question

Chapter 16, Problem 1SQP

To determine

The basic cause of business cycle.

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

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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 16, Problem 1SQP

To determine

The basic cause of business cycle.

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

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

Answer 5

Chapter 16, Problem 1SQP

To determine

The basic cause of business cycle.

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

Answer 6

Chapter 16, Problem 1SQP

To determine

The basic cause of business cycle.

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

Answer 7

Chapter 16, Problem 1SQP

To determine

The basic cause of business cycle.

Answer 8

Expert Solution & Answer

Explanation of Solution

The basic reason of business cycles according to the generally accepted theories are the changes in the amount of aggregate spending or aggregate demand. The aggregate spending includes the consumption, investment for business, government expenditure, and foreign transactions. The changes in any of these factors result in the business cycle. Consumption (C), investment (I), government expenditure (G) and foreign transactions (X-M), and gross domestic product GDP can be expressed as follows:

GDP=C+I+G+(X−M)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Real GDP: Real GDP refers to the market value of all the final goods and services produced in an economy during an accounting year, which is measured in the constant prices.

Answer 12

Ch. 16.4 - Prob. 1YTE Ch. 16.4 - Prob. 2YTE Ch. 16.4 - Prob. 3YTE Ch. 16.5 - Prob. 1YTE Ch. 16 - Prob. 1SQP Ch. 16 - Prob. 2SQP Ch. 16 - Prob. 3SQP Ch. 16 - Prob. 4SQP Ch. 16 - Prob. 5SQP Ch. 16 - Prob. 6SQP

The basic cause of business cycle.

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The basic cause of business cycle.

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Chapter 16 Solutions