4. Question 4. Due to COVID-19 Pandemic an economy of Fitland is in a recession. The governmentis planning to increase government spending by 30 billion euros. Assume that marginal propensityto consume is 0.75 and there is no crowding out effect.• Define this policy measure and its consequences.• Quantify the total effect of an increase government spending on the aggregate demand.Compare if the tax cut of 30 billion euros would lead to the same result.• Discuss how can the crowding out effect change the consequences of an increase ingovernment spending.

Answered: Image /qna-images/answer/bf56731a-275d-400e-bb4e-ee743d9299b3.jpg

Answered: Question 4. Due to COVID-19 Pandemic an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
1. What is the relationship between working hours and wage levels? (A). An increase in the wage rate increases working hours if the substitution effect dominates the income effect. (B). An increase in the wage rate reduces the hours worked if the dominating effect is a substitution effect. (C). A decrease in the wage rate increases working hours if the substitution effect dominates the income effect. (D). Answers (A) and (B) are correct. (E). Answers (A) and (C) are correct.
4 - : What is the slope of a nonlinear function at its maximum point? a) -2nd B) 2nd NS) 0 D) -one TO) one
What the mentioned graph shows give the statement.
What type of relationship would you expect between thefollowing?a. Sales of hot dogs and sales of hot dog bunsb. The price of winter coats and sales of winter coatsc. The price of personal computers and the production ofpersonal computersd. Sales of toothbrushes and sales of cat foode. The number of children in a family and the number oftoys in a family2. Represent the following data in bar graph form.
10. (Figure 5.6) Garth spends his income on ice cream and coffee, and coffee sells for $1 a cup. If ice cream sells for $1.50 per gallon, Garth will purchase: Coffee (cups) | 12- 11 10- 9 8- 7- 6- 5- 4 3- 2 34 5678 9 10 Ice cream (gallons) 8 gallons. 6 gallons. 2 gallons. O 1 gallon.
6 (i) FIGURE 6 (i) 22 18 10 1 2 3 Number of video games rented per month 4 All the questions below are referring to Figure 6 (i) and explain and show your computation in your answer. a) The marginal utility of the first video game rental is b) The marginal utility of the third video game rental is c) At which unit of video game, the marginal utility is zero. Total utility
Question 7 (10 points) Listen Figure 2-7 HOURS WITHOUT SLEEP Refer to Figure 2-7. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep? The less coffee a person drinks per day, the more time he can go without sleep. There is no relationship betwveen how much coffee per day a person drinks and how long he can go without sleep. The more coffee a person drinks per day, the more time he can go without sleep. The more coffee a person drinks per day, the less time he can go without sleep. Question 8 (10 points) V Saved CUPS OF COFFEE PER DAY
A supple curve for which of the following products would likely be the most inelastic? a. Car b. A glass of lemonade c. A radio d. a pair of jeans
5. (12) Max is stocking up on ice cream and cookies; ice cream costs $2 and cookies cost 50 cents ($.50). The marginal utility gained from each treat is given in the table below. If Max is a rational utility maximizer and has $8 to spend, how many of each treat will they purchase, and in what order? Show your work. Qice cream MU of ice Qcookies MU of cream cookies 1234567 40 1 9 32 2 9 26 3 7 18 4 5 8 5 3 6 6 3 4 7 1
Question 40 Which goods are sold in markets? O private goods and club goods O public goods O private goods, club goods, and common-resource goods O private goods all types of goods
Number of Units of Commodity 5 6 7 D. 116 8 25. Refer to the above table. What is the marginal utility of the fourth unit? A. 36 B. 44 C. 80 Total Utility 36 80 150 252 350 440 26. Refer to the above table. The addition of which unit has the greatest marginal utility? A. Fifth B. Sixth C. Seventh D. Eighth 27. Refer to the above table. At what consumption level for this product does diminishing marginal utility set im A. 4 units 8.5 units C. 6 units D. 7 units

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