81 FMostly sunnyPage 1c. Assume that the Covid-19 pandemic reduces the labor force to L = 81 and makes consumerscautious so that the new consumption function is C = 240 + 0.8(YT). Solve for the new realGDP level, marginal product of capital, marginal product of labor. Find the equilibrium realinterest rate and show the shifts in the goods & service market.Q Searchhp

The objective of the question is to determine the new real GDP level, marginal product of capital,…

Answered: 81 F Mostly sunny Page 1 c. Assume that…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Consumer goods (per period) 0 Reference: Ref 2-5 X •Z -Curve 2 Curve 1 Capital goods (per period) (Figure: Consumer and Capital Goods) Look at the figure Consumer and Capital Goods. Point Z: A will be attained as soon as the economy becomes efficient and moves to curve 2. B. is attainable if the quantity and/or quality of factors decreases. C. is attainable if the economy is able to reach full employment. D. is unattainable, all other things unchanged.
81 F Mostly sunny Page 1 c. Assume that the Covid-19 pandemic reduces the labor force to L = 81 and makes consumers cautious so that the new consumption function is C = 240 + 0.8(YT). Solve for the new real GDP level, marginal product of capital, marginal product of labor. Find the equilibrium real interest rate and show the shifts in the goods & service market. Q Search hp
Consider the “circular flow” diagram for our economy. Explain what each of its components mean and how that detailed model of “incomes” and “expenditures” provides a foundation for economic theory?
partB
2. Over the past few years, one of the most closely monitored economic variables has been the inflation rate, which measures the change in the price level. Measuring it is complicated because different prices change by different amounts and sometimes in different directions (for example, the price of college tuition has been steadily rising for decades, whereas the price of TV sets has been decreasing). We can use the expenditure function to aggregate the change in the price level, by asking how much more it costs to achieve the same utility level under the new prices. That is, if the prices change from (P₁, P₂) to (P₁, P₂), where p₁ > p₁ and pź > P₂, we can define the inflation rate as: b. i 1 1 Suppose Bebel has a Cobb-Douglas utility, U = 9₁²9₂², and an income level of Y = 1600. Suppose p₁ = 100 and p = 100 so the price of good 1 doesn't change, but the price of good 2 increases from p₂ = 16 to p2 = 25. a. Calculate Bebel's optimal consumption bundle and utility level at the initial…
hi this question is for Macroeconomics but on bartleby it show economics
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The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. 10 Supply 8 Demand 100 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars) is the source of the supply of loanable funds. As the interest rate falls, the quantity of loanable funds supplied increases v Suppose the interest rate is 4.5%. Based on the previous graph, the quantity of loanable funds supplied is v than the quantity of loans demanded, resulting in a v of loanable funds. This would encourage lenders to v the interest rates they charge, thereby v the quantity of loanable funds supplied and v the quantity of loanable funds demanded, moving the market toward the equilibrium interest rate of 5% . INTEREST RATE (Percent)
Let's say that Americans decide that home ownership isn't worth it anymore; instead, they all just move in with their parents. If Americans quit buying homes, this will cause AS to shift leftward due to a drop in consumption AS to shift leftward due to a drop in economic investment AD to shift leftward due to a drop in consumption AD to shift leftward due to a drop in economic investment is a venent policy ait illaue by a computer. Ine interest rate, amount to buy or sell in open market operations, etc., are all determined by an equation put into the computer. This approach is not supported by any American economists based on discretion O called rule-based policy described by all listed options
3. Briefly explain whether production of each of the following goods is likely to fluctuate more or less than real GDP does during the business cycle: • Tesla Model 300 • McDonald's Big Macs Whirlpool Refrigerator Pampers Diapers ● You are required to explain your answers for each of the products listed above. Ensure you reference your data sources and any academic articles that support your answers. Hint: Graphing the answers may make it visually easier to determine your answer. Please include all graphs, charts, and diagrams in your assignment.
Multiple choice question and give a short explanation about your answer: According to the Fisher model does a change in the interest rate changes aconsumer’s behaviour if he/she is a borrower? a. a consumer keeps consumption equal in both periods trying to smooth it.b. second-period consumption might rise or fall depending on income orsubstitution effect variations.c. a consumer increases consumption in the first period.d. no effect at all.

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