Suppose velocity is 3, real output is 9000, and the price level is 1.5. What is the level of real money balances in this economy?

Q: Explain how adverse selection leads to market failure. Give a hypothetical example/situation.

A: Moral hazard develops when one party is eager to accept greater risk in exchange for greater…

Q: The government is considering raising the tax rate on labor income and asks you to report on the…

A: The number of people willing to work at various wage rates is referred to as the labour supply. It…

Q: o profmarg has a statistically insignificant effect on rdintens

A:

Q: 2. Consider the following game. Two criminals are thinking about pulling off a bank robbery. The…

A: Nash equilibrium is a pair or set of strategies in which each player has chosen a strategy that…

Q: Gilberto's reservation prices for tubs of hummus are given below. Q (Tubs) 1 2 3 Answer: 4 5 6…

A: The consumer consumes only two goods, and reaches at equilibrium only if they allocate its income on…

Q: dr. phelps (Edmund Phelps) claims the US is becoming more corporatist -- which of the four models…

A: Let’s first understand the term Market Structure: “Market Structure” in simple terms refers to a…

Q: The balance sheet of Nationa Bank is shown below (assume a legal reserve ratio of 10%): Assets…

A: To find the amount of money that  a bank can create we need to find the money multiplier which is a…

Q: The permits the federal government to protect certain products of the mind, just as much as it…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Consider three inputs of production: labour, physical capital and natural resources, and an economy…

A: Decreasing return to scale is when the increase in input will increase the output but the increase…

Q: Using the following table, for each price level, calculate the optimal quantity of units for the…

A: A competitive market is a structure where no single consumer or producer has the ability to…

Q: A popular buffet has two types of customers. Type A who are willing to pay $25 but only eat for $15,…

A: The revenue of the firm is the total amount that the firm earns by selling the products at the given…

Q: ULTIPLE CHOICE (identify the one best answer and provide explanations): Consider an economy in which…

A: Economics refers to the social science that deals with the production, and distribution of goods and…

Q: Hello I need help with my homework in macroeconomic. The Macro Economy (Aggregate Supply and…

A: Disclaimer: - Since you asked multipart question, we are solving first 3 parts as per guidelines. If…

Q: 2. Reviewing on social media can take many forms such as reposting your followers feedback on IG…

A: A review refers to an assessment of a work of literature, a piece of merchandise, a business, a…

Q: Graph the appropriate function(s) in each problem, and use the graphing calculator and its features…

A: Given  Cost function: C(x)=0.1x2+35x+15,000        .....(1) Revenue function: R(x)=-0.9x2+385x…

Q: Consider a hypothetical open economy. The following table presents data on the relationship between…

A: Net capital flow is the total of a country's revenue from exports and expenses on imports. The flow…

Q: The General Hospital is evaluating new office equipment offered by four companies. In each case the…

A: While making a decision across different alternatives, the firm chooses that alternate which…

Q: me information below to answer the next question. Real GDP = $4 billion - Velocity = 4 According to…

A: Quantity Theory of Money explains the turnover rate of money supply, assuming velocity to be stable.…

Q: he inverse demand for a homogeneous-product Stackelberg duopoly is P = 26,000 −4Q. The cost…

A: Stackelberg Model: This is a model for duopoly under which 2 players moves sequentially. Here one…

Q: manufacturer moves pallets of materials with a forklift truck. He has consistently used the same…

A: In the provided question, the operating expenses and salvage value is different in every year. Thus,…

Q: d. $20

A: In the long run competitive equilibrium will be  Price P= Marginal cost= Marginal revenue= minimum…

Q: 17. A firm in a perfectly competitive industry faces the following long run total cost schedule: 2 4…

A: A perfectly competitive firm produces at P=MC=ATC in long run.  MC cuts ATC at its minimum point.…

Q: Given the utility function U= 0.4* X₁, 0.25 * X2, 0.35 * X3 and income M = 300, how much will the…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: For this question, consider that the letter "A" denotes the last 4 digits of your student number.…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: 4-19 Bus and subway ridership in Washington, D.C., dur- ing the summer months is believed to be…

A: A regression model is an econometric model that depicts the relation between the dependent…

Q: You work for Midstates Solar Power where a Semi2 machine has an initial cost of $80,000 and an…

A: Interest factors that will be used to solve this question: Capital recovery cost formula:…

Q: Say you are part of the government and found that there is a presence of a cartel; explain the…

A: A cartel is an association of the producers or suppliers of goods or services which is meant with…

Q: II. True or False short explanations are needed if False) 1. Suppose a long-lasting bad business…

A: The study of a country's economy as a whole is known as macroeconomics. Microeconomics is the study…

Q: If the law of one price holds for all goods in the long run, Select an answer and submit. For…

A: The real exchange rate tells us the price of a domestic basket of goods relative to the price of a…

Q: This package of sliced cheese costs $2.97. How much would a package with 18 slices cost at the same…

A: Price is the amount of money needed to be paid for acquiring a given product or the amount of money…

Q: ustainable tourism is a long-term commitment. The energy consumption in the tourism industry is…

A: Sustainable tourism takes into consideration all aspects of the tourism sector with sensitivity…

Q: Present Worth I B C' A₁ A2 A3 $100 $400 $250 $400 $800 $500 $150 $200 $150 These alternatives have…

A: A benefit-cost ratio is the comparison of an idea or proposal's advantages to disadvantages,…

Q: Annual expenses for two alternatives have been estimated on different bases as follows. End of Year…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Figure 1 contains the relevant cost curves for a perfectly competitive firm Price and Cost 961 900…

A: A firm in a completely competitive market can sell as much as it wants as long as it accepts the…

Q: The table below shows the supply and demand conditions for a firm that will play trumpets on the…

A: Social cost is the sum of private costs and external costs imposed on society.  A supply curve…

Q: 00 copies during its useful life; its salvage value after producing the 350,000 copies is projected…

A: Using units-of-production method the depreciation in a year is given as = (Face Value - Salvage…

Q: Enchanted Kingdom (EK) has higher demand during Christmas (D₁= P1 = 20 -0.02Q1) than in other months…

A: The following information is given in the task: The inverse demand function during festive season…

Q: Lesson 5.12 - Comparison of Perfect Competition and Monopolistic Competition 1. states that a…

A: The market is a platform that provides an opportunity to various firms for trade. Various consumers…

Q: A monopolistic competitor wishing to maximize profit will select a quantity where marginal cost…

A: In a monopolistic competition ,  There are free entry and exit.  They serve slightly different types…

Q: What are the main characteristic/assumption of monopoly market structure?

A: Monopoly: Monopoly means "alone to sell". In a market with a monopoly, there is only one seller of a…

Q: 1. Profit= we can rewrite the formula as Profit= firm has no variable costs, Profit would be equal…

A: A monopoly is a market form where there is only one seller while the consumers are in large numbers.…

Q: Mr. Toni bought a plot of land for investment. The following the following functions: V(t) = 100et…

A: A plot of land is bought by Mr. T for investment purposes. The value of that plot continues to…

Q: The competitive market model depends on the following three core assumptions: 1. There must be many…

A: In PC( perfect competition), there are huge numbers of sellers and buyers dealing in a similar…

Q: Use a labor supply and demand graph to explain why college football coaches could be paid more than…

A: The MRP (marginal value product), is the value of money made by adding one unit of a resource. The…

Q: 8. Jessie's demand schedule for candy bars indicates... a) Her opportunity cost of buying candy…

A: Demand for a good refers to the various quantities of a good purchased by the individuals at…

Q: What is the maximum amount of deposits that can be supported by total bank reserves of $50 billion…

A: Reserve are the part of deposit that are kept by the bank.  Reserve is the product of reserve ratio…

Q: Suppose that a professional economist has illustrated the market demand for labor and the market…

A: The labor hours demanded by the employers at different wage rates during a given period of time is…

Q: Describe how an oligopolist is more likely to earn a profit in the long run compared to…

A: Competitive firm: A competitive company has no monopoly power or control. That is, it must charge…

Q: 4-18 Thirteen students entered the undergraduate business program at Rollins College 2 years ago.…

A: To find whether there is a meaningful relationship between SAT and GPS we regress GPA and SAT. GPA…

Q: A fund is to be donated by wealthy man to provide scholarships to deserving students. The fund will…

A: In this case, compound interest is actually calculated here i.e. compound interest is actually the…