The Aggregate Expenditure Model is traditionally called the” Keynesian Cross”. Use the Aggregate Expenditure Keynesian Cross diagram to show what happens to the economy under the following conditions:  (Note that is different from the AS-AD Model.)   What happens in the model if government expenditures are increased (G↑)? What happens if taxes are raised (T↑)? What happens to the US economy if the rest of the world experiences economic growth and imports more US goods (X↑)?

Q: Total revenue increases if the price of the good A) falls and supply is inelastic. B) rises and dema...

A: Option A When supply is inelastic any % increase in price will be less than % change in quantity sup...

Q: In 1932, U.S. manufacturers, which used to enjoy steady relationships with their foreign distributor...

A: Answer- "Thank you for submitting the questions. But,we are authorized to solve one question at a ti...

Q: A4 1. Two chemical companies, A and B, operate in a small New England town. Every week A releases 40...

A: *Hi there , as you have posted multiple question . As per our guidelines we are only allowed to solv...

Q: Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or...

A: In the above diagram, the potential GDP is achieved when the AD curve intersects the AS curve. In th...

Q: Discuss wether a fall in price of a product will always be accompanied by a reduction in the quantit...

A: Price elasticity of demand refers to the degree of responsiveness of the quantity demanded of the go...

Q: Question 2 · Thanh decided to go to university. If Thanh goes to college, he will spend $80,000 on t...

A: Given; Thanh's tuition fees= $80000 Rental room cost= $15000 Cost of books= $4000 If he hadn't gone ...

Q: O Suppose and I pky the and I play the game reck-paper - sci ssor twice Xrsume mixed stratojos (ran ...

A: Assuming Rock - R, Paper - P, Scissors - S Total number of possible outcomes in one game = 3 ( R, P,...

Q: True or false? Government agencies are just as challenged by competitors as firms are in the private...

A: government Agencies are challenged by competitors as firms are in the private sector. - FALSE

Q: Because market interest rates were near all-time lows at 1.25% per year, a hand tool company decided...

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent, depos...

Q: use a graph to illustrate if the event changes demand.

A: According to the law of demand when price increases quantity demand decreases accordingly and vice v...

Q: Apply the gravity model to India and China. Why has it taken so long for India and China to become s...

A: 1. Between 2014-15 and 2019-20, India's economic relationship with China has been characterised by t...

Q: The following table contains data for a hypothetical closed economy that uses the dollar as its curr...

A: GDP is the sum of consumption, investment and government spending in a closed economy.

Q: Consider the following scenario. Aggregate output y at date t is specified as follows, where the tre...

A: Output Equation in the economy - yt = πt - πte + y⏜ Where πt = Actual inflation rate , πte = Expecte...

Q: Why monetary policy and fiscal policy are important macroeconomic tools used to stimulate the econom...

A: Monetary policy is important to control the money supply in a economy . Inflation and interest rates...

Q: Calculating GDP with the exenditure approach and income approach... O..gives the same result ..can g...

A: GDP measures the market value of final goods and services produced by an economy during a given peri...

Q: Suppose that Mr. Ali's disposable income declined from 15 000 TL to 12 000 TL. Given that Mr.Ali's m...

A: Marginal Propensity to Consume is the proportion of an increase in income that gets spent on consump...

Q: The definition of Game Theory is: Game Theory is a field of mathematics that analyzes strategic-inte...

A: As mentioned above , A game is a situation in which the outcome is determined by the acts of two or ...

Q: Question 2: A firm faces the following cost function: C(y) = 4y2 + 10, resulting in a marginal cost ...

A: C=4y2 + 10 Differentiate C w.r.t y MC = dC / dy => MC = 8y ------------------------- C=4y2 + 10 =...

Q: This question: 1 point(s) possible The table shows the demand and supply schedules for boxes of choc...

A: Equilibrium refers to the situation where the quantity demanded by the consumers is equal to the qua...

Q: 6.The standard Solow growth model assumes: a. The depreciation rate is a choice. b. The capital-ou...

A: The Solow growth model can be explained as the model of long-run economic growth. A major component ...

Q: xplain the difference between positive and normative economics with example.

A: Positive economics is defined as a stream of economist which focuses on quantification, identificati...

Q: Olivia and Tara are sisters, whose parents requie them to do four hous of househoid chores per week....

A: Given:   No of Dog parks No of the Plants watered Olivia 3 9 Tara 2 4

Q: If inflation is increasing and you expect it to continue to the future then you will want to O Spend...

A:   Inflation is the sustained increase in the general price level of goods and services in an economy...

Q: 12. Suppose an economy represented by the graph below started with K = 25, so it was in a steady sta...

A: Suppose an economy represented by the graph below started with K = 25 ,so it was in a steady state ,...

Q: Draw the market for electricity below with the knowledge that the energy market is the greatest glob...

A: Negative externalities arise when the use or production of an item has a negative effect on a third ...

Q: The economy below has a linear production possibility frontier, given by C=Y-G/q. The government has...

A: Since public good is inferior, its quantity demanded goes down if it becomes cheaper. Here because o...

Q: The picture in this exercise describes an economy that is experiencing a boom in the level of capita...

A: Given information Graph is provided for the trade off between consumption and leisure hours in an ec...

Q: Question 2   Consider an overlapping generations model with the following characteristics: individua...

A: Introduction: Equilibrium is the situation in which market supply and demand balance each other out,...

Q: An investment of P20,000 will be required at the end of the year. The project would terminate at the...

A: Investment Required Initially after year 1 = 20,000 Salvage Value after year 5 = 26000    So , there...

Q: Price Quantity (dollars per demanded bushel) (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12...

A: At $6 the quantity demanded is 6000 bushels, at $7 the quantity demanded is 4000 bushels.

Q: Blana is the manager of a local bank branch in College Station where he consumes bundles of two comm...

A: Utility function of Diana U(x,y)=x+y        ... (1) Income of Diana at college station is $5000.    

Q: Consider an economy in which all taxes are autonomous and the following values of autonomous consump...

A: Since you have posted multiple subparts, as per the guidelines we can solve only the first 3 subpart...

Q: QUESTION 11 Which of the following pictures represents the effect of an increase in available hours ...

A: Leisure time is when you are not working and may relax and do things that you like.

Q: The government will not set artificial rates on products.

A:   The government does not regulate prices in the capitalistic economy with price controls. This will...

Q: A couple decided that for every child that will be born to them they will place a deposit in the ban...

A: At the 18th birthday the child will receive the amount of P300,000.  This implies, F=300,000 rate of...

Q: Recently in the City of Seoul, building contractors lobbied the city council to pass an ordinace req...

A: Lobbying is any attempt by individuals or private interest groups to influence the decisions of gove...

Q: which to build a structure, which they will nee years hence. The current cost are: land, P1,000,000;...

A: Given, At Present Cost of, Land = P1,000,000 Building P3,500,000  Appreciation Rate Land = 20% per a...

Q: What are the pressures that encourage MNEs to establish in newly industrialising countries? b. What ...

A: MNEs: A worldwide undertaking, condensed as MNE and now and then likewise called global partnership ...

Q: RobbinGood sells financial trades to retail traders (r) and institutional traders (i) whose demand c...

A: Answer  Solution: Given: In this instance, the demand curves of the retail trader or r and the insti...

Q: Identify several different types of financial institutions, and describe the main services these ins...

A: Answer:- Different types of the financial institution and main services of this institution offers a...

Q: In the foreign exchange market diagram, expansionary fiscal policy causes a small open economy's ? c...

A: Expansionary fiscal policy raises the level of aggregate demand by increasing government spending or...

Q: Which of the following holds true when net investment is zero? O The law of motion of capital implie...

A: In the Solow growth model, savings and investment are the key drivers of economic growth in a countr...

Q: Suppose that Helena's utility over goods x and y is given by U (x, y) = 2/¤ + VG Solve Helena's util...

A: A. U(x, y) = 2x +y MRS = MUxMUy = 22x12y = 2yx equating MRS to price ratio: 2yx  = pxpy y = x px2 py...

Q: You take out a loan of $12,000 to pay for a piece of equipment. You plan to repay the loan in 16 yea...

A: Suppose you want to pay the first installment at the end of the year. So 16 equal payments of $1100 ...

Q: what is the importance of investing in Bitcoin

A: Bitcoin refers to a decentralized digital currency which does not have any central bank or a single ...

Q: a. What is the "particular form of price elasticity" that Moore's Law is said to have? b. Give a bri...

A: Step 1: Price elasticity: Price elasticity is an estimation of the adjustment of the utilization of ...

Q: Suppose the following situation Assume the following is the market for a normal good (lets say high ...

A: NORMAL GOOD " ARE THOSE GOODS WHOSE DEMAND INCREASES AS PEOPLES INCOMES AND PURCHASING POWER RISES. ...

Q: What are the different measures used by the government to control unemployment? How does Philip's cu...

A: The economics as a study is based upon the basic idea of scarcity of resources. The scarcity prevail...

Q: Impact of an exogenous increase in world ings a. sav- b. Impact of increased business uncertainty

A: S-I shows market for savings and investment. Equilibrium in this market occurs where savings is equa...

Q: The graph below shows the budget constraint between income and leisure for an individual. For every ...

A: A consumer's budget constraint is the sum of all combinations of products and services that they can...