Which of the following best describes the operation of ‘automatic stabilisers’? Select one: a. Some components of government spending inevitably increase when output falls. b. The economy always tends toward full employment. c. When saving increases, investment increases. d. When consumption falls, investment increases.

Q: Using an AD/AS diagram, demonstrate what happens when consumers decide to spend more?

A: The economics as a study is based upon the idea that the entities in the economy tend to make…

Q: What is economics? Economics is the study of money and financial systems. b. a. Economics is the…

A: Economics is a study of social science.

Q: Discuss the nature of an economy by comparing economists' interpretation and political economy…

A: An economy is a group that may be understood by assessing how its resources are distributed. Every…

Q: What is Time Consistency? Select one: a. None of the above b. a situation in which an agent,…

A: Time consistency One of the most complex issues in economics is that of time consistency.It emerges…

Q: 9. What is an assumption of a Neoclassical model? a. The future is uncertain b. Output increases…

A: Supply and demand are used to describe the production, price, consumption, and income distribution…

Q: Which of the statements best describes an exogenous variable in an economic model? An exogenous…

A: Exogenous variable:An exogenous variable is a variable that is not affected by any other variable in…

Q: What does potential GDP mean and what does it mean in terms of neoclassical analysis? Please be sure…

A: GDP is the total market value of the finished goods and services produced in a nation over a…

Q: Write a minimum of three sentences per term. 1. investment demand 2. surplus 3. savings offer

A: These three term are important economic variable which influence economic activities and it's…

Q: write a short note about the following variables and support your answers by giving examples for…

A: Variable cost (VC) is the cost which changes with change quantity produced or change in output. It…

Q: Explain 5Es of macroeconomics.      Write about three linked models of macroeconomics.

A: Aggregate demand refers to the total demand for all goods and services within an economy, influenced…

Q: a. Calculate the change of each endogenous variable value of the effect of AG* = 160 b. Calculate…

A: A 4 sector economic model is a simplified representation of an economic system that divides monetary…

Q: Compare and contrast Neoclassical and Islamic economics views of economists.

A: In economics. Different schools of thoughts have their significance to explain the economy from…

Q: A circular-flow diagram is a model that helps to explain how participants in the economy interact…

A: The economy in the circular flow diagram shows the movement of products, money and services in a…

Q: Given the pandemic greatly affecting the economy, how can the economy realign to fit the “new…

A: Macroeconomics is the discipline of economics that investigates an economy's overall behaviour and…

Q: Draw a circular flow of diagram and identify the parts of the model that corresponds to the flow of…

A: DISCLAIMER  “Since you have asked multiple questions, we will solve the first question for you as…

Q: n financial markets, savers can directly provide funds to borrowers. Select one: a. Fales. b. True.

A: Financial Market: It broadly refers to any marketplace where the securities are traded, among one…

Q: What is the economic interpretation of the intertemporal budget constraint?

A: In the economy, there is a constraint on the consumption of income and spending. The decisions of…

Q: What is potential GDP and its significance for neoclassical analysis? It’s crucial to use examples…

A: GDP refers to the sum total of market value of final goods and services produced in a country during…

Q: State if the following statements are true or false 1. In the circular flow model firms demand…

A: The Circular flow model shows the flow of income between two sectors i.e. Firms and households.

Q: hat is a basic definition of per diems? what are the pros and cons of per diems?

A: Per diems: It refers to the expenses and it is a Latin expression that signifies "for every day."…

Q: From the economic perspective, needs are defined as "states of lack", and have different…

A: Classical theory is defined the characteristics of a self-regulating economy. There is no government…

Q: Jack is a lowly office worker in 2030, and represents the typical consumer. He onl spends his money…

A: a) CPI =(price in the current year/ price in the base year)*100 It is given that the CPI for the…

Q: Which graph (A, B, C, or D) reflects the 'long-run' change in the economy best when the savings rate…

A: The question is based on Solow model of economy growth.

Q: the father of classical school of economics was Adam Smith? a. True b. False

A: Adam Smith is considered the father of Classical economics, he had written “The Wealth of Nations”…

Q: 24. Using the macroeconomic data in #21 above and assuming (i) a full employment economic output of…

A: Given C=175+0.75DI Where DI= Y-T I=50, G=35, X=30 M=45 and T=35 Full employment level of GDP is $900…

Q: Question one: According to classical economic theory, there is an invisible hand in the economy.…

A: According to the classical economic theory, there is an invisible hand in the economy. This can be…

Q: True or false? Basic economic concepts can be used to understand consumer spending.

A: Basic monetary concepts such as organic markets, utility, cost elasticity, and consumer behavior…

Q: Each of 50 commuters (commuting in the same direction) must choose which of two routes to take:…

A: There are 50 commuters . So , k + n = 50 Where , k : commuters choosing route 7 , n : commuters…

Q: Each of the following situations requires some trade-offs. You are supposed to analyze and discuss a…

A: Trade Off refers to choosing between two alternatives. In order to choose one alternative a person…

Q: For each of the following scenarios indicate who is the 'producer' and who is the 'consumer' a.…

A: Producer refers to that entity,firm or individual which produces goods for purpose of sales.For…

Q: Which of the following is not a doctrine of modern macroeconomics? A. Spending drives prices,…

A: Macroeconomics: It is a part of economics that deals with the economy as a whole. Macroeconomics…

Q: What are the assumptions of the Fisher’s Intertemporal Choice Model?

A: Intertemporal choice is the process that changes the consumption pattern in such a way that try to…

Q: Macroeconomic objectives are the goals of a government. In terms of this statement, evaluate any…

A: Microeconomic objectives allude to the specific goals and results that people, firms, and…

Q: A study in 2008 looked at how commuters' commute time changed when car pool lanes were added in…

A: The difference in difference approach is the difference between the control and treatment groups…

Q: 6. A Rolling Stones song, one of the top-rated rock-and-roll songs of all time, was titled "You…

A: One of the fundamental ideas in economics is scarcity. It indicates that there is a gap between the…

Q: Make at least one example that shows the following in investment: Ten principles of economics…

A: Answer 1. In his book Principles of Economics, Gregory Mankiw lays out ten economic principles,…

Q: Which of the following statements is/are correct? I. Because aggregate variables are essentially the…

A: While macroeconomics examines choices made by nations and governments, microeconomics analyses…