Answered: In a circular flow diagram, firms'…

In a circular flow diagram, firms' payments _____the government a.only flow into b.only flow out of c.flow into and out of d.do not affect

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Elasticity

A: Elasticity is the responsiveness to change. In this case, it is the willingness to take a loan to a…

Q: 1. Using the chart above, write a short description highlighting positive and negative indicators of…

A: Economy: It is the structure or conditions of economic life in a country,

Q: Hyperinflation hurts: Select one: a. owners of gold b. real estate owners c. people on a fixed…

A: Hyper inflation refers to the rapid and out of control increase in the general price level. During…

Q: On the supply side of the GDP, Structures account for around __________ of U.S. GDP. a)57% b)7%…

A: C or Consumption expenditure is the expenditure incurred on the consumption by households.G or…

Q: Economics #18 If last year there was deflation, and velocity of money remained constant, we can…

A: The quantity theory of money is given by MV=PY Where M= money supply V=velocity of money P=price…

Q: Which of the following are exam. The town of Sprohm lowers living. Save The Queen, an armorer…

A: Most individuals would define "organised chaos" as a complex situation or process that appears…

Q: 1.Which of the following ideas from prominent economic thinkers is the oldest? a.Control of the…

A: When talking about prominent economic thinkers, they are the people who have given various theories,…

Q: 67. Suppose that there is a sudden drop in government spending. What happens to the economy in the…

A: Answer: If there is a sudden drop in government spending then the aggregate demand curve will shift…

Q: A decrease in government spending will decrease aggregate demand (AD) and cause prices to decrease…

A: Aggregate demand is the composition of consumption, investment, government spending, and net…

Q: In the long run, the quantity of money in circulation (a) influences real GDP. (b) influences…

A: Money circulation is the supply of money in the market.

Q: Use the AD/AS model below to answer the following questions. In each case, assume the economy starts…

A: The AD-AS framework and Keynesian economic theory put forward complementary viewpoints on the field…

Q: Assume the United States economy is in recession. (a) Explain the effect of the recession on: (i)…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Crowding out is associated with: A.higher interest rates and higher business investment.…

A: Crowding out is an economic concept that describes the relationship between government spending and…

Q: Explains it correctly Money such as Money Demand, Money Creation and banking, Monetary and Fiscal…

A: Money: Money is considered an object that is generally accepted as a medium of exchange. It was…

Q: c. Predict how each chanage will affect interest rates. Increase interest rates C. A financial…

A: Interest rates refer to the cost of borrowing money or the return earned on an investment, usually…

Q: When an economy goes into a recession (a decline in GDP) government savings usually Select one: a.…

A: Reccession means slowing down of business and economic activities in the economy. This means less…

Q: 6. Given below is the original demand and supply curves for movies which are D, and S, and the…

A: As we know the Price is determined by the demand and supply market forces. When both curves…

Q: 1. Describe the primary activity happening in a market 2. Define financial market

A: A market can refer to a physical location where buyers and sellers come together to exchange goods…

Q: Households use money on which of the following ways? A) wages, saving, spending B) Public Goods…

A: Households use money on different ways.

Q: (i) What is the relationship between the two variables as shown in table 1 and why does this…

A: Demand for money refers to in financial economics, the demand for money is the expected holding of…

Q: Assume that the government sets a ceiling on the interest rate that banks charge on loans. If the…

A: The banks are considered to be one of the most important entities in the functioning of the…

Q: High tax rates that put money into the government's funds tend to slow spending, and ultimately slow…

A: Tax: The word tax refers to the compulsory payment which is imposed by the government. It is also an…

Q: Suppose there is a permanent decrease in the country's money supply. (a) Describe the immediate…

A: Given there is a permanent decrease in the country's money supply, lets see its effect on:

Q: a movement along the consumption fuction can be caused bt a a. well performed stock market b.…

A: Increase in the performance of stock market will boost the income level thus it will shift the…

Q: Describe bank runs. Why did they happen and what happened as a result?

A: In the banking sector, different terms are used to depict specific conditions of the banks.

Q: True or false 1- Frictional unemployment has a long-term nature. 2- It is a must to have a double…

A: 1. Frictional unemployment occurs naturally due to employment transitions within an economy. People…

Q: An economic expansion leads to ________ needs-tested spending and ________ tax revenues. a.…

A: The objective of the question is to understand the impact of economic expansion on needs-tested…

Q: If the price level falls . The value of money increases. The money supply increases. O The value of…

A: Answer is given below

Q: U.S. aggregate demand and long-run aggregate supply decreased during the Great Recession. This…

A: Great recession is a situation in which the demand and supply decreased to its lowest point.

Q: shifts the IS curve to the right. Select one: a. A decrease in government spending b. A decrease in…

A: IS curve refers to the curve that depicts the position of the goods market. It is a downward-sloping…

Q: Explain and draw a graph to illustrate how a depreciation of the U.S. dollar changes the short-run…

A: Macroeconomics examines the working, composition, and dynamics of an economy. AD/AS model is used…

Q: Interest rate 10% 10% 9 8 Money supply 9 Interest rate Money supply 8 7 7 6 6 5 5 Money demand 4 4…

A: The money market attains equilibrium when the funds available with the surplus units are exactly…

Q: Money Supply Money Demand Interest Rate Investment (at Interest Rate Shown) $ 500 $ 600 2% $ 70…

A: The first step is to find the new equilibrium interest rate and corresponding amount of investment…

Q: Inflation a.What is inflation and how is it calculated? List and explain the two types of inflation…

A: a) The constant rise in prices in an economy over a period of time is called inflation. It is…

Q: 18. Keynesian Economics: a. supports the theory that deficit spending can be used to stimulate the…

A: 18. Keynesian Economics is a macroeconomic theory, which is advocated that the government deficit…

Q: Consumer's budget is influenced by: a. his/her tastes and preferences b. Consumer's income…

A: The budget constraint shows the combination of two goods and services which a consumer can buy given…

Q: Money is not an economic resource because: a. Money, as such, does not produce anything. b.…

A: According to economic definitions, money is a good that acts as a store of value and a means of…

Q: The use of money makes us more efficient because: Answer a. We spend more time trading and more time…

A: Money: The word money refers to anything that is used in the transactions or acts as the medium of…

Q: Source B Information about Economy X's banking system Required reserve ratio Actual reserve ratio…

A: Money supply refers to the quantity of money that is in circulation in the economy.The money supply…

Q: The RBA: a. acts as the federal government's bank and collects income taxes. b. provides all paper…

A: RBA refers to the Reserve Bank of Australia.

Q: If the Fed increases the money supply, A. the interest rate increases, which tends to reduce stock…

A: Central banks regularly use company expectations when making monetary policy decisions in order to…

Question

In a circular flow diagram, firms' payments _____the government a.only flow into b.only flow out of c.flow into and out of d.do not affect

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

rach phase of the business cycle has certain characteristics. During peak or prosperity, businesses expand end employment is high. Creditors lend money freely; wages, consumer spending, and prices rise. Contraction begins when production begins to slow some because most people who want a good have aiready purchased the good. As the business cycle moves downward a recession might occur. During a recession, businesses readjust to reduced demand, unemployment rises, consumer spending and prices fall, and creditors restrict loans. If the recession continues or worsens, it becomes a depression. The lowest point of a depression is called a trough. Eventually, technology, government programs, international developments, or low depression prices cause an increase in demand. As business adjusts and begins to expand again, the cycle moves upward through a recovery or expansion phase-back to peak or prosperity. Identify the phase of the business cycle described in each statement below. Band "1.…
part C D i need in words not handwritten solution please
Money is defined as *a. anything that is generally accepted in payment for goods and services or in the repayment of debt.b. a risk-free repository of spending power.c. the unrecognized liability of governments.
FIN Lee Dash Mid T Question Not yet answere (a) "Hyperinflation in Venezuela is the currency instability in Venezuela that began in 2016 during the country's ongoing socioeconomic and political crisis. Venezuela began experiencing continuous and uninterrupted inflation in 1983, with double-digit annual inflation rates. Inflation rates became the highest in the world in 2014 under Nicolás Maduro, and continued to increase in the following years, with inflation exceeding 1,000,000% by 2018. Economist had highlighted some potential causes of the hyperinflation include heavy money-printing and deficit spending by Venezuela government and offcourse, the loss of massive government revenue due to weak oil price which 90% of its export rely on oil industry." (Alijazeera, 2019) (i) potential causes of "Economist had highlighted some the hyperinflation include heavy money-printing and deficit spending by Venezuela government..." Using appropriate diagrams, explain how fiscal deficit cause…
I need answer typing clear urjent no used chatgpt pls i will give 5 upvotes
a government is facing high inflation, then it will take an action as following: I. increase taxes, increase discount rate II. decrease taxes, decrease discount rate III. increase taxes, decrease discount rate IV. decrease taxes, increase discount rate
I need the top part and the bottom one
6) relates to the number of goods and services that consumers are willing to buy 6) at different prices at a specific time. A) Supply B) Demand C) Elasticity D) Deficit E) Balance of payments
Which event would shift short-run aggregate supply to the right? (a) A labor shortage puts upward pressure on wages, causing an increase in the expected rate of inflation. (b) An increase in government regulation makes it more costly for firms to comply with legislative requirements. (c) Expecting inflation to increase, workers bargain for higher wages. ( d) Internet technology allows retailers to use just-in-time delivery of merchandise, thereby lowering inventory costs. Only typed answer and don't use chat gpt
Typed asap please Please don't use any AI for the answer I want right answer and quality answer thanks
11. Inflation and unemployment Suppose that the government believes the economy is producing goods and services beyond its optimal level. The government therefore decides to decrease the quantity of money in the economy. This monetary policy_______ the economy's demand for goods and services, leading to________ product prices. In the short run, the change in prices induces firms to produce______ goods and services. This, in turn, leads to a_______ level of unemployment. In other words, the economy faces a trade-off between inflation and unemployment: Lower inflation leads to________ unemployment.
If the government changes the tax code in a way that encourages investment, Select one: a. the demand for loans will shift to the right leading to a higher interest rate. b. None of the answers are correct c. the demand for loans will shift to the left leading to a lower interest rate. d. the supply of loans will shift to the right, leading to a lower interest rate. e. the supply of loans will shift to the left, leading to a higher interest rate.