Macroeconomic instability.

Question

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Answer 1

Question

Chapter 37, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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Students have asked these similar questions

At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.

Answer 2

Question

Chapter 37, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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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 37, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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 4

Question

Chapter 37, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

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 37, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

Answer 6

Chapter 37, Problem 1DQ

To determine

Macroeconomic instability.

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.

Economics Concept Introduction

Concept introduction:

Demand pull inflation: Demand pull inflation refers to increasing price due to increasing the aggregate demand.

Cost push inflation: Cost push inflation refers to increasing price due to increasing the cost of production.

Answer 7

Chapter 37, Problem 1DQ

To determine

Macroeconomic instability.

Answer 8

Expert Solution & Answer

Explanation of Solution

In economics, the mainstream of macroeconomic instability is Keynesian-based and it focuses on aggregate spending and its components. Changes in investment spending are significant and lead to changes in the aggregate supply, occasionally, and adverse supply shocks which change the aggregate demand.

Investment spending refers to wide variation and a ‘multiplier effect’ that expands these changes into greater amount in aggregate demand; these can cause demand pull inflation in the forward direction or a recession. A mainstream view of instability could arise on the supply side; it leads to decreases in a nation’s aggregate supply which may threaten the economy by simultaneous causing cost push inflation or recession.