Two main macroeconomic concerns are the problems of inflation and unemployment. a. What are the social costs of inflation? Explain TWO of them? b. What is natural rate of unemployment? Explain the TWO main causes of natural rate of unemployment. With reference specifically to ONE of these causes, suggest ONE practical government policy that reduces the natural rate of unemplo

Q: If the supply curve for Pizza is perfectly elastic, then a reduction in demand will cause: Question…

A: In economics the perfectly elastic and perfectly inelastic will be categorized as the two extremes…

Q: Which of the following would have the greatest effect on discretionary spending? Unemployment rises…

A: Discretionary spending refers to the money that people have available to spend on non-essential…

Q: why do many economists, pundits, and government officials continue to believe that the state must…

A: The International Monetary Fund (IMF) monitors the international monetary system and global economic…

Q: the production function, the Technical rate of substitution, and the elasticity of scale

A: The production function of an organization or enterprise is an association between inputs used and…

Q: why did china don't benefit from great divergence

A: The Great Divergence alludes to the time frame during which the Western world experienced fast…

Q: the Taylor Rule for real interest rate:

A: Taylor rule is simple monetary policy rule that prescribes how a central bank should adjust its…

Q: Price measure Monthly Consumer Price Index (CPI) microdata CPI goods CPI services 1996-2006…

A: Inflation is the amount that a collection of products and services have increased in price during a…

Q: Which one of the following describes a mentor? O A. An employee who is transferred to a new location…

A: Employees- It refers to the one who is getting paid for providing services is the employee.

Q: 2. Comment on whether or not the statement "the act of donation for poor people by an economic agent…

A: An individual, group, or institution that makes economic decisions and conducts actions that affect…

Q: Define GDP growth in an economy.

A: The total value of all goods and services generated in an economy over a specific time period,…

Q: Assess whether it is beneficial to be in a Monetary Union

A: A monetary union is a collection of nations that uses a single currency and has a single central…

Q: (a)) Find marginal buyers WTP at Q- 25. In the market without tax, compute his or her CS? (b). (d)…

A: In economics, deadweight loss is the difference in production and consumption of any given product…

Q: Assume that the sacrifice ratio in the Philippines is 3, the unemployment rate is at its natural…

A: Unemployment happens when someone is wants and able to work but does not have a paid job. The…

Q: A corporation purchased a machine for $60,000 three years ago. It had an estimated life of 10 years…

A: After tax investment The investment made from the amount that is left after the subtraction of the…

Q: Answer correctly and explain. I ll rate. Do it fast. The ________ suggests a negative relationship…

A: Phillips Curve: The Phillips curve shows the trade-off between the inflation rate and the…

Q: What is PPF

A: PPF is also important in economics.  It can, for example, show that a country's economy has reached…

Q: The demand and supply functions of a good are given by: P = -3Q + 75 P=2Q + 15 Determine the…

A: Equilibrium quantity is when there is no shortage or surplus of a product in the market. Supply and…

Q: Deflation often results in a decrease in aggregate demand. Deflation is a theoretical possibility…

A:

Q: A Well tested or widely accepted economic theory is often called an economic principle

A: Economics is the social science that examines how people, organisations, and society make decisions…

Q: Two bidders compete in a sealed-bid auction for a single indivisible object. For each bidder i, the…

A: Given that; There are two bidders, each bidder i value that is independently and uniformly…

Q: Use the previous production function where capital costs of this firm is $20 per unit, and labor…

A: The average total cost is characterized as the total costs caused to produce a product, separated by…

Q: Suppose you are interested in applying equilibrium theory to the following game, where 0₁ = {E, F}.…

A: Let us name each nodes of the game as 1,2,3,4 and 5 starting from left to right. Solving the game…

Q: The US decides to impose a tariff on Avocados of $0.75 each Under Free Trade you have the following…

A: (a) Government gain in tariff revenue To find the value of the tariff revenue we need to first…

Q: Question 3) In a two-period world, a consumer's utility function is given by u(c1, c2) = ln(c1) +…

A: The concept of 'intertemporal choice' exemplifies how choices made today influence the options…

Q: a1 = (E1/0.1) = (150/0.1) = 45.8. is not make sense. How come?

A: A Pigovian tax is a tax evaluated against private individuals or businesses for taking part in…

Q: The following table shows data for a sample production function. Average Total Marginal Product (TP)…

A: Average product is the total product divided by the total no. of labor.  The average product is…

Q: Discuss the internalization theory of FDI. Why do you think the host country tends to resist…

A: When a firm purchases a majority stake in a company operating in another nation, it is engaging in…

Q: g O | Output MC C b h k n a MR ATC AVC ● Use the graph and the letters in it to answer these…

A: "Every business produce in order to generate profits. While producing goods and services businesses…

Q: 2. A firm produces a product with labor and capital. Its production function is described…

A: production function, in economics, equation that expresses the relationship between the quantities…

Q: What are the definitions of the following economic principles and give 1 brief example each: -…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 1. Which among the seven (7) activities of the Fagan inspection methodology is the hardest to…

A: A Fagan inspection can be defined as a course of attempting to find defects in records (such as…

Q: If the supply curve for Pizza is perfectly elastic, then a reduction in demand will cause: Question…

A: Demand Refers to the quantity that a consumer wishes to buy at a given price in a given period of…

Q: Now suppose there are 100 firms in this industry, all with identical cost schedules. Fill in the…

A: In a perfectly competitive market, all firms are identical. A perfectly competitive firm produces at…

Q: Consider the table given below. The marginal propensity to consume is a. 0.2 b. 0.4 c. 0.6 d. 0.8…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Q: In Keynesian 45 degree diagram, at the intersecting point between the line representing and the line…

A: 1. In Keynesian 45-degree diagram ... Blank 1: aggregate supply Blank 2: aggregate demand Blank 3,…

Q: Concerning the Great Depression; the stock market crash of 1929, collapse of the banking system, and…

A: The event of the Great Depression occurs in 1929, the stock market crash of 1929, the collapse of…

Q: 50 people travel from Mississauga to Toronto. The Go Train takes 20 minutes. The average time for a…

A: Game theory examines a player's decision-making depending on how they expect other players to make a…

Q: It is generally regarded as easier for the government to taxes or spending during a recession than…

A: When talking about government policies to deal with recession or inflationary period, it can be said…

Q: Employ the production cost theory to explain why we consider the Fruit & VegetableMarket in…

A: In a hypothetical market structure known as perfect competition, numerous small businesses compete…

Q: The price elasticity of demand for uber rides is 0.5, the income elasticity of uber rides is - 0.2…

A: Price elasticity of demand refers to the ratio of percentage change in quantity demanded to…

Q: Comment on the following statement: “In the short run, Mr. Mohammed, a seller in the Fruit &…

A: In perfect competition ,  There are large no. of buyers and sellers.  There are no barriers to entry…

Q: Define externality and it's importance.

A: A cost or benefit that is not included in the cost of a commodity or service is known as an…

Q: A generic firm can make all the following changes in the long run except Select one: O a. Leave an…

A: The term generic brand refers to a type of consumer product on the market that lacks a widely…

Q: Food and Non-Alcoholic Beverages Alcoholic Beverages and Tobacco Energy Goods Non-Energy Industrial…

A: Price increases, or inflation, can be thought of as the gradual loss of purchasing power. The…

Q: True/False A Well tested or widely accepted economic theory is often called an economic principle

A: A set of ideas and principles that explains the functioning of different economies is called an…

Q: When the Fed sells securities, the money supply rates increases; rise decreases; rise increases;…

A: The total quantity of money demanded in an economy is the total amount of money demanded in that…

Q: 1. Consider the following two player 2x2, normal form game: (Payoffs are starting from northwest and…

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

Q: A competitive firm's production function is f(L, M) = 8L1/2 + 8M1/2. The price of L is $1 and the…

A: Given that; Production function =f(L,M)=8L12+8M12 Price of L=$1 Price of M=$3 Marginal product of…

Q: List three different ways that a risk-averse person can reduce financial risk.

A: We can say, Financial Risk would result in the risk which would be borne by the investor which…

Q: Suppose the economy is initially in a long-run equilibrium. Starting from this position, assume that…

A: The aggregate demand-aggregate supply (AD-AS) model is a way to depict how national income is…