Explain why a supply shocks is most of the time believed to be temporary? And does not result in government requiring to do any special policy to rectify the problem.
Q: Suppose a closed economy has an intended investment of 100 and an aggregate consumption function…
A: Given information: C=250 + 0.75Yd -----> Consumption function I = 100 ------------> Investment…
Q: 6. The amount by which federal tax revenues exceed federal government expenditures during a…
A: "Government of a nation plays an important role in stabilizing economy. Government make expenditures…
Q: chooses to devote all available hours (except those she has to sleep) to leisure during the week,…
A: 4) The government gives Anne a subsidy of $150, no matter how many hours she works. Even if she has…
Q: Instructions-Attempt all Questions Question One Consider an individual with the utility function,…
A: *Hi there , as per our guidelines we can only solve 1 question with maximum 3 sub parts at a time .…
Q: Some economists and management scholars argue that statements such as "diversity is an economic…
A: Social responsibility and market forces should BOTH work to bring about a culturally diverse…
Q: How is the Solow-Swan and paradox of savings related? How does it differ from each other? Is there a…
A: When discussing the paradox of thrift, we're talking about an economic theory that claims that…
Q: Is the following statement True or False? "Employer Taste Discrimination models of wage inequality…
A: When talking about Employer taste discrimination model, it is the strategy of a firm to hire labor…
Q: B. The installation cost of a machine is $10000 with estimated life of 10 years and selvage value of…
A: Installation Cost = 10000 Salvage Value = 2000 n = 10
Q: price level 15 14 13 12 11 10 7 6 5 LRAS E SRAS AD
A: Equilibrium in the economy occurs at the intersection point of aggregate demand (AD) and short-run…
Q: Question 1: Consider the following 2-player Chicken game, with the following conditions on the…
A: Answer -
Q: 1. Explain Arrow impossibility theorem and show the voter paradox with an example Consider an…
A: According to the theorem, a ranked-voting electoral system cannot achieve a community-wide ranked…
Q: 11. A laptop that is produced by its manufacturer in year 2023, and sold to a consumer in year 2024,…
A: The sum total of all the values of final goods and services being produced in a year is referred to…
Q: 1) Graph a Monopoly, make sure to include the Price, Quantity, Demand, MR, MC, ATC, and Profit
A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…
Q: Use the macroeconomic policy objectives as a starting point: economic growth and increasing…
A: Macroeconomic policy Macroeconomic policy refers to the policies which are used by the central bank…
Q: /Consider a baseline long run equilibrium where output is 22 trillion dollars, and the price level…
A: Philips Curve The Philips curve is a graphical representation of a curve that depicts the…
Q: With respect to your knowledge of the economic impact of the coronavirus outbreak, explain how the…
A: Aggregate supply is an economy's gross domestic product (GDP), the total amount a nation produces…
Q: Another part of the initial fiscal response to the Covid-19 recession were checks sent to every ad…
A: Another part of the initial fiscal response to the Covid-19 recession were checks sent to every…
Q: Explain, using the PPF-indifference curve diagram, how a change in tastes can cause a country to…
A: The PPF is a chart that shows every one of the various blends of result of two goods that can be…
Q: Explain in detail why economic profits are zero in the long run in the Perfect Competition (PC)…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: a)Draw the supply curve with the slopey our choice (individual or market demand). Choose a price…
A: "Supply curve for a commodity represents a positive relationship between price and quantity supplied…
Q: Niko's monthly car insurance premium is $165, and will increase by 10% next year. How much will he…
A: The sum of money that a person or corporation must spend for an insurance coverage is known as an…
Q: 5) The following set of (extensive form) games represent two firms who are attempting to form a…
A: Above question is an example of extensive game - There are two players : { A & B } Strategy set…
Q: 1. Corporate bond interest rates are a good measure of the interest rate facing firms planning…
A: Economic shocks and macroeconomic policy on income, real interest rates, and inflation may be…
Q: What do economists mean by the "time value of money"? A. The way that the value of a payment changes…
A: "Money is widely acknowledged as a means of economic exchange. It is the way through which the…
Q: w much do profits increase by when output is expanded from umber.
A: *Answer:
Q: If 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute…
A: Price elasticity of demand refers to the proportion extrade in the amount of demand that…
Q: Price P₁ P. P Figure 14-10 99
A: A firm tends to earn positive profit if the price is above average total cost. If the price lies…
Q: Figure 2 shows the payments and revenues of a small project. If M.R.R.R=%12, Evaluate the project…
A:
Q: Suppose the following graph shows the supply of and demand for admission to the University of…
A: The markets are the places where the buyers of the goods, services, and other products tend to meet…
Q: One of these four answers increases the demand for financial capital. Which one? Group of answer…
A: When talking about financial capital, it is the requirement of the funds by the firms to deal with…
Q: How can Grammatical Signals help in the enhancing the coherence of problem-solution
A: There are other words like 'in addition' that may be used to introduce fresh concepts.
Q: Let’s assume that a severe hurricane destroys many shrimp farms along the Gulf Coast of Louisiana.…
A: Here, it is given that the impact of a severe hurricane led to destroy many shrimp farms in the Gulf…
Q: How did you get P* and Q*? What is the solution?
A: Equilibrium in the market occurs at such a price where demand is equal to supply.
Q: Refer to Figure 14-7. What line segment best reflects the short-run supply curve for this firm? a.…
A: Supply curve shows different levels of quantity supplied at different prices.
Q: Items A B C D E 2004 Price (₹) 15 33 38 25 50 Qty. 30 35 57…
A: Given: Items Price…
Q: 5. a) Kelsey has just rented an apartment from Rental Properties Inc. The monthly rent will be $885.…
A: The monthly rent =$885 For first and last month, Kelsey needs to pay = $885 + $885 = 1,770
Q: 10. Which of the following best describes government revenue? a) Government programs designed to…
A: Government of a nation needs money to finance its spending. Government has two sources of…
Q: What is the exchange rate?
A: Exchange rate serves as the basic link between the domestic and foreign markets of various…
Q: Using supply and demand diagrams representing the market for loanable funds, show and explain the…
A: In financial matters, the loanable assets principle is a hypothesis of the market loan fee. As…
Q: The consumer price index (CPI) rose from 105.9 to 113.4, while Helen's net salary decreased 7.0 %.…
A: Here, given information is, Initial CPI (base year): 105.9 Final CPI (current year): 113.4 Change…
Q: + 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute…
A: Price elasticity of demand is a measurement of the change in consumption of a product in relation to…
Q: If the government imposes an MC-pricing scheme on the natural monopolist, the government may need to…
A: In different types of market, cost and revenue functions are different based on market condition and…
Q: a perfectly competitive market over the long run, a. an increase in market demand or a decrease in…
A: Perfect competition market Perfect competition is a form of market where there is a large number of…
Q: Please answer fast please arjent help please
A: Total cost is the expenditure that is incurred in the production of goods and services. The total…
Q: 1) Explain the concept of Classical unemployment using a diagram. ¸ 2) Explain the concept of…
A: Classical unemployment Here the firms are the receiver of labour so here they demand for the labour…
Q: Covington Corporation purchased a vibratory finishing machine for $20,000 in year 0. The useful life…
A: The measure that depicts the current income stream of cash flows discounted at a specified rate of…
Q: Use a Keynesian model to calculate the answer. Full employment = 80 output million
A: Marginal propensity to consume (MPC) represents the change in consumption due to change in income…
Q: Gridiron University is a North Carolina state university that wants to attract both undergraduate…
A: Maximum Revenue Maximum revenue is the prices of goods and services which may cause the maximum…
Q: Question 4 of 10 A farmer has developed a new type of fertilizer. This new fertilizer costs 20…
A: Opportunity cost Opportunity cost refers to the cost which is sacrificed by the producer by…
Q: There are three countries in the world: Country A, Country B, and Country C. These countries have…
A: Country A:- demand=DA=400-10PA supply=30PA Country B:- demand=DB=320-40PB supply=40PB Country C:-…
Step by step
Solved in 2 steps
- Are there any “good” supply shocks? ExplainWhy is price “stickiness” or “rigidity” important for understanding macroeconomic adjustments? How would policy recommendations be different if prices adjusted immediately?Can you explain how positive and negative supply shocks affect market equilibrium in terms of price and quantity?
- Suppose that due to more stringent environmental regulation it becomes more expensive for steel production firms to operate. Also, recent technological advances in plastics has reduced the demand for steel products. Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of steel. Can we say with certainty that the market price for steel will fall? Why?Give a one line definition for the term "DEFICIENT DEMAND" In macro economics.Aggregate Supply: Explain whether the economy is currently operating in the Keynesian, intermediate or neoclassical portion of the economy's aggregate curve. Also, point out a time when the economy may have been operating at another portion of the aggregate supply curve.
- Legislation proposes that the government should use macroeconomic policy to achieve an unemployment rate of zero percent, by increasing aggregate demand for as much and as long as necessary to accomplish this goal. From a neoclassical perspective, how will this policy affect output and the price level in the short run and in the long run? Sketch an aggregate demand/aggregate supply diagram to illustrate your answer.Explain in details how high inflation can lead to a recession in several ways.Figure 1: Hayek’s (Classical) AD-AS Model Economics Online. (n.d.). Aggregate Demand. Retrieved from http://economicsonline.co.uk/Managing_the_economy/Aggregate_demand.html Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce? Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not? Figure 2: Keynes’s AD-AS Model Economics Online. (n.d.). Aggregate supply. Retrieved from http://www.economicsonline.co.uk/Managing_the_economy/Aggregate+supply.html 2.1. In Figure 2 above, what are the factors that may cause the aggregate demand to shift from AD to AD1? What is the difference between demand pull inflation, cost push inflation and recession? 2.2. In macroeconomics, the immediate short run is known as a length…
- Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce? Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?What happens when firms and workers underestimate future prices in the economy? Focus your answer on what would happen to actual output as opposed to the expected potential output. (Course is macroeconomics).As the economy begins to worsen Claudia Sahm (formerly director of macroeconomic policy at the Washington Center for Equitable Growth) proposes a new policy that provides American's with an automatic lump-sum stimulus payment when the three-month average national unemployment rate rises by at least .5 % compared to its low in the last year. What kind of policy is this? Discuss the effects of this policy proposal if it was in place as the changes in (a) took place.