Which of the following causes the short-run aggregate supply curve to shift to the right? A. a positive technological change B. an increase in the expected price of an important natural resource C. a higher expected future price level D. a decrease in the capital stock
Q: 1. Find the extremum of z= xy subject to x+y = 6.
A: Given information: z = xy -------> Objective function x+y = 6 --------> constraint.…
Q: Consider an aggregate production function of the form Y= K⅓(AL)⅔ Assume that the labor force is a…
A: GDP per capita is calculated by dividing the total gross value added by all producers who are…
Q: AN INVESTMENT OF P270,000.00 ON COMPUTER SHOP WILL HAVE THE FOLLOWING DATA: UNIFORM ANNUAL…
A: Present worth or PW is the sum of money that must be invested in order to achieve a particular…
Q: When a tariff is imposed on a good, the price to consumers rises; rises falls; falls falls; rises…
A: When the tariff is imposed on a good the price for the consumer increases because it is like a hike…
Q: What is the effect on China's aggregate demand when the United States goes into an expansionary…
A: Aggregate demand is the collective demand for goods and services made by all of the consumers within…
Q: Equilibrium condition: Y=C+I+G+NX a. Solve for equilibrium real income. b. If autonomous real…
A: Given:- S=-40+0.10*Yd IM=20+0.20*Yd T=60+0.25*Y I=150 G=200 X=50 Dear Student as you have posted…
Q: If reserves are scarce, how would the federal funds rate change (increase or decrease) if the Fed:…
A: Federal fund rate refers to the rate at which the financial institutions such as bank lend to each…
Q: Differentiate geographical pricing from psychological pricing.
A: The process of establishing a manufacturer's value in exchange for their goods and services is known…
Q: 5) As the price of a frozen banana increases from $3 to $5, quantity demanded for ice cream…
A: Substitute goods are those goods in which when price of one good increases , the demand for other…
Q: True or False: Credit unions use funds for making automobile loans, personal loans, and home…
A: A particular kind of financial cooperative that offers conventional banking services is a credit…
Q: Benefit–cost analysis requires the monetization of all relevant benefits and costs of a proposed…
A: A technique for calculating the value that a person places on something is called contingent…
Q: Required information Determine the amount of any depreciation recapture (DR), capital gain (CG), or…
A: The depreciation method utilized in the United States for tax reasons is known as the MACRS, or…
Q: What consumption differences might you expect to observe between families characterized as…
A: Socio-economic status plays an important role in what we can afford. Unprivileged individuals…
Q: Investors For the Future (IFF) LLC provides financial advice to investors in a magazine called New…
A: Initial Cost in today's value = 2500 Annual Operational Cost = 300 Real Interest rate = 5%…
Q: Refer to Figure 11.3. The demand for money curve will shift from Md1 to Md0 if Group of answer…
A: The Equilibrium interest rate is established where the demand and supply for money are equal. The…
Q: Please explain thoroughly with example (if possible). What are the effects of Basel III on the…
A: Basel III norms introduced in 2010 mainly focused on the tier 1 capital requirements of banks .
Q: The following graph shows the aggregate demand curve (ADAD), the short-run aggregate supply curve…
A: Aggregate Supply is the total quantity of all goods and services produced in an economy at all…
Q: A French company imports goods with transaction value at EX-Works €8000, transport cost is €650 and…
A: Tariff refers that a taxation which is imposed by the government on goods and services , import…
Q: What factors determine exchange rates? Use relevant examples and charts to support your answer
A: Exchange rates are one of the major indicators of a nation's economic health that are closely…
Q: Suppose the world price of sugar, Pw, is higher than country A’s autarky price, and country A offers…
A: Export subsidy is the per unit amount provided to the sellers by the government in order to increase…
Q: The Lorenz curve of income distribution in North is f(x) = 0.1x4 +0.4x³ +0.3x² +0.2x The Gini…
A: In order to determine the average income of a population, economists use the Gini coefficient ,…
Q: One reason why a tradable permit system will reduce pollution more efficiently than a…
A: Tradable permits are pollution limits which can be traded in order to create a market in the right…
Q: A country has an absolute advantage in the production of a good if it can _____ of the good than…
A: A country is said to have absolute advantage in producing specific good or service if it can produce…
Q: he residents of country P consume only peaches and pecans. The table below shows the prices and…
A: Given consumption basket = 10 bushels of peaches and 15 bushels of pecans Now, with 2000 is the base…
Q: 2. Deviating from the collusive outcome Mays and McCovey are beer-brewing companies that operate in…
A: The profit-maximizing quantity is such a quantity where the marginal revenue curve intersects the…
Q: The consumer price index is used to: a. Track changes in the level of wholesale prices in the…
A: Inflation refers to the increase in the prices of goods and services over a period of time, it is…
Q: Transfers of goods and money may induce both efficiency and inefficiency in terms of resource…
A: Economic efficiency states that the economic state where every resource is allocated optimally for…
Q: Assume that banks hold no excess reserves and that all currency is deposited into the banking…
A: Given reserve ratio = 10 % Increase in money supply = 80 million $
Q: 10 00:05:28 Differentiate between a firm and an industry. Short Answer Toolbar navigation BIUS ESE…
A: A firm is important in economics because managerial decisions are made at the firm level. In common…
Q: 2. Find the present worth of a future payment of P100,000 to be made in 10 years with an interest…
A: Introduction: Present value: The amount of money that usually should be invested in order to realize…
Q: a. b. Quantity Price $70 C. d. 1 12 13 15 16 17 18 19 10 $58 $46 $34 Total Revenue $28 $80 $224 $328…
A: The following formula would be useful to solve this problem: Total Revenue = Price × Quantity…
Q: A price-taking firm's variable cost function is VC = 20³, where Q is its output per week. It has a…
A: A variable cost is a corporate expense that changes with respect to how much an organization…
Q: A client (the principal) is trying to determine the best possible contract to enter into with her…
A: Risk aversion is the propensity for people to choose outcomes with low uncertainty over those with…
Q: "Too much money chasing too few goods" will eventually lead to higher prices because Select one: O…
A: If there is too much demand in the economy => lot of opportunities to earn money for firms =>…
Q: 2. Discuss the connection between education & income inequality.
A: Due to the uneven distribution of wealth and income within the economy, there is a problem with…
Q: Identify and discuss the general ways in which companies can increase their profitability and profit…
A: the primary goal of businesses in generating profits and they seek global expansion as they seek…
Q: The Bowman Corporation has an $13 million bond obligation outstanding that it is considering…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: Suppose an American business owner purchases chocolates from Belgium in order to sell them in her…
A: The answer provided below has been developed in a clear step by step manner.
Q: Consider the market for cod, and then choose the correct statement. O A. Cod fishing is an example…
A: When a group of people in a community use a shared resource for their own gain, the resource for the…
Q: Refer to Figure 3. If this is a monopoly, equilibrium is Q=40, P=$50 Q=40, P=$30 Q=30, P=$20 Q=45,…
A: A monopolist will produce where the Marginal revenue curve intersects the marginal cost curve. Thia…
Q: Equilibrium condition: Y=C+I+G+NX a. Solve for equilibrium real income. b. If autonomous real…
A: The national income in the open economy is constituted of the consumption function, investment,…
Q: Find the consumers' surplus and the producers' surplus at the equlibrium level for the given…
A: Equilibrium is where demand equals supply. Consumer surplus is the area below demand curve and above…
Q: Consider two individuals who face an uncertain income, w, that can have two values, 0 and 16, with…
A: Given: Utility function: u1=w12 u2=w1212 The wealth can be: w = 0 with the probability of 12 w = 16…
Q: Most health-care spending is on hospitals and professional services. Describe the crux of the issue
A: The phrase "health care economics" refers to the many interrelated elements that interact to affect…
Q: 2. The profit function of a firm is 7(x, y) = px+qy-ax²-By², where p and g are the prices per unit…
A: The profit function of a firm represent the profit of firm at various level of price or inputs or…
Q: Explain why you should or shouldn't change the level of abatement if you abate a total of 1.0 Mg/L…
A: According to the marginal decision rule, the firm will maximize the profit by increasing the output…
Q: how was the tarrif calculated.?
A: Tariff is the method used to control the demand and supply. Tariff revenue is the product of tariff…
Q: What are the monetary policy goals and how to achieve them using Monetary tools?
A: The goal of the central bank's monetary policy is to maintain control over the amount of money in…
Q: Mary is paid on the 1st of every month and her rent is due on the 15th of every month. This is an…
A: money management alludes to how you handle all of your funds, from planning to effective money…
Q: The following graph shows the market for euros, which is initially in equilibrium. Suppose an…
A: In a world where all goods are traded and markets are fully efficient, the equilibrium exchange rate…
Step by step
Solved in 2 steps
- The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate price levels? Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. O Potentially the price levels have decreased to a lower aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have fired some employees as labor has become too expensive.3. The graph below shows the AD-AS model for the US in long-run equilibrium. Label both axes and the following: AD, SRAS, LRAS. Indicate the equilibrium price level is P, and equilibrium level of output is Yo. X Assume that due to an expansion in European economics, US exports to that region increase. A. Show the effects of this change in the graph above. B. What happens to the SR equilibrium price level and level of output (Real GDP)? Label these P₁ and Y₁. C. Initially, what happens to real wages? D. What happens to the unemployment rate? E. Given your answer to parts C and D, how might workers respond? F. Show the effects of the change described in part E in the graph above. Label the new equilibrium price level and level of output as P₂ and Y₂. G. After this transition to the LR equilibrium, what is the level of output (Y₂) as compared to the initial level (Yo)?Which of the following causes the short-run aggregate supply curve to shift to the right? OA. an increase in the expected price of an important natural resource OB. a positive technological change OC. a higher expected future price level O D. a decrease in the capital stock
- Explain whether each of the following events shiftsthe short-run aggregate-supply curve, the aggregatedemand curve, both, or neither. For each event thatdoes shift a curve, draw a diagram to illustrate theeffect on the economy.a. Households decide to save a larger share of theirincome.b. Florida orange groves suffer a prolonged period ofbelow-freezing temperatures.c. Increased job opportunities overseas cause manypeople to leave the country.1200 1100 1000 900 800 700- 600 500 Price Level 400 300 200- 100 LRASI LRAS2 100 200 300 400 500 600 700 800 9001000 Real GDP What is a possible cause for the long run aggregate supply to shift from LRAS1 to LRAS2? O A decrease in capital. O A decrease in labor. O An increase in the fertility rate. O A global war.For each of the three theories for the upward slopeof the short-run aggregate.supply curve, carefullyexplain the following:aA how the econom}' recovers from a recession andreturns to its long-run equilibrium without anypolicy interventionb. what determines the speed of that recovery
- What effects would each of the following have on aggregate demandor aggregate supply, other things equal? In each case explain the expectedeffects on the equilibrium price level and the level of real output, assumingthat the price level is flexible both upward and downward.· A sizable increase in labor productivity (with no change innominal wages).· An increase in exports that exceeds an increase in imports (notdue to tariffs).How does an increase in the price level affect the quantity of real GDP supplied in the long run? OA In the long run, an increase in the price level will increase real GDP OB In the long run, an increase in the price level decreases inflation, which will decrease real GDP OC. In the long run, an increase in the price level increases inflation, which will decrease real GDP OD. Changes in the price level do not affect the level of GDP in the long run. CIDS Price level (GDP deflator) 123 113- 103- Long-Run Aggregate Supply LRAS2 LRAS2 LRAS23 Real GDP (trillions of $)The economy is depicted in the graph to the right. a. Suppose, there are new discoveries of key raw materials. Which of the following best describes the result of this event? O A. The short-run aggregate supply curve shifts out while the long-run aggregate supply curve shifts in. OB. Both the short-run and long-run aggregate supply curves shift outward. OC. The short-run aggregate supply curve shifts inward while the long-run aggregate supply curve shifts outward. OD. Both the short and long-run aggregate supply curves shift inward. b. Complete the diagram. 1.) Using the line drawing tool, draw the new long-run aggregate supply curve representing this shock. Label it as LRAS,. 2.) Using the 3-point curved line drawing tool, draw the new SRAS representing this shock. Label it 'SRAS,'. Carefully follow the instructions above, and only draw the required objects. to search O
- Illustrate and interpretthe short-run andlong-run aggregatesupply curves4. AD; SRAS; LRAS; Short-run equilibrium; Long-run equilibrium; Recessionary gap and Inflationary gap. Consider the diagram below, if the economy is in an inflationary gap, where is it located with respect to both the institutional PPF and the physical PPF? KB LRAS Physical PPF SRAS, Institutional PPF •D AD. Real GDP Good X Real GDP Price Level All Oth er GoodsDraw a short-run aggregate supply curve. Label it. As we move up along the short-run aggregate supply curve, O A. potential GDP increases OB. the money wage rate, the prices of other resources, and potential GDP remain constant OC. the money wage rate and the prices of other resources change by the same percentage OD. the real wage rate, the prices of other resources, and potential GDP remain constant 150 140- 130- 120- 110- 100- Click the graph, choose a tool in the palette and follow the instructions to create your graph. 90- Price level (GDP deflator, 2009=100) 12.0 12.5 13.0 13.5 14.0 14.5 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. WX 11.5 trend rise in velocity. Evi