Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 33, Problem 2SPPA
To determine
To explain:
The way the price level in the U.S. and the real GDP will change in the short-run.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Why are prices of agricultural commodities volatile? Discuss, drawing on economic theory and using examples.
taking the wheat market as an example. What happens to the income of all wheat growers if the wheat supplied increases, with no other changes? What happens to the income of all wheat growers if the wheat supplied decreases, with no other changes?
Suppose that the U.S. economy is at full employment when strong economic growth in Asia increases the demand for U.S.-produced goods and services.
How the U.S. price level and real GDP will change in the short run?
Refer to the figure above. If the economy starts at A, a decrease in the price of oil (an input) moves the economy
to A in the long run.
to B in the long run.
to D in the long run.
to C in the long run.
Chapter 33 Solutions
Foundations of Economics (8th Edition)
Ch. 33 - Prob. 1SPPACh. 33 - Prob. 2SPPACh. 33 - Prob. 3SPPACh. 33 - Prob. 4SPPACh. 33 - Prob. 5SPPACh. 33 - Prob. 6SPPACh. 33 - Prob. 7SPPACh. 33 - Prob. 8SPPACh. 33 - Prob. 9SPPACh. 33 - Prob. 10SPPA
Ch. 33 - Prob. 11SPPACh. 33 - Prob. 1IAPACh. 33 - Prob. 2IAPACh. 33 - Prob. 3IAPACh. 33 - Prob. 4IAPACh. 33 - Prob. 5IAPACh. 33 - Prob. 6IAPACh. 33 - Prob. 7IAPACh. 33 - Prob. 8IAPACh. 33 - Prob. 9IAPACh. 33 - Prob. 10IAPACh. 33 - Prob. 11IAPACh. 33 - Prob. 12IAPACh. 33 - Prob. 1MCQCh. 33 - Prob. 2MCQCh. 33 - Prob. 3MCQCh. 33 - Prob. 4MCQCh. 33 - Prob. 5MCQCh. 33 - Prob. 6MCQCh. 33 - Prob. 7MCQ
Knowledge Booster
Similar questions
- Carefully explain what is happening in the following markets. Indicate the impact if any on demand,supply,price and quantity. Choose answer from the following ; no impact, excess supply,shift inwards to left,increase equilibrium price,shift outwards to right, decrease equilibrium quantity,increase towards equilibrium,increase equilibrium quantity, decrease towards equilibrium, change in quantity uncertain, excess demand,decrease equilibrium,change in price uncertain 1d) Electricity is a major input the production of aluminum,and aluminum is substitute in supply for steal ,the effect of an increase in price of electricity.arrow_forwardNeed help with Evaluation Evolution Question 3 asks how easily the quantity supplied of salmon can be changed in response to changes in its price. In your answer, write about the short term - if the price of salmon doubled today, for example, could the quantity supplied of salmon double in the next year? What are the constroints on increasing supply? Then consider the long term. What are the constraints on increasing supply and how important are they? Come to an overall condusion about the short term and long term.arrow_forwardwhy you agree or disagree with the following statement: “Higher prices always yield higher revenues.”arrow_forward
- The country of Econoland produces two goods: textbooks and widgets. Last year produced 200 textbooks and 500 widgets. This year it produced 250 textbooks and 600 widgets. Given no other information which of the following could not explain the change?  A) Econo land experienced an improvement in widget making technology B) none of these answers are correct based on the question C) Econo land experienced a reduction in unemployment Can you help me understand this morearrow_forwardHow do people typically respond to higher real interest rates? by saving less by paying more taxes by saving more by consuming morearrow_forwardPrice in Quantity in Price in Product Quantity in Price in Quantity in 2009 2009 2019 2019 2020 2020 A 10 8 12 10 13 14 B 6 13 8 9 9 20 C 14 17 17 17 17 21 D 13 11 14 10 13 13 The table above shows the quantities of Goods A-D produced and their prices in 2009, 2019 and 2020. The base year is 2009. Calculate the economic growth rate in 2020. (Enter your answer as a percentage rounded to 2 decimal places. Do not put the percent sign.) Your Answer: Answerarrow_forward
- If this economy devotes all of its resources to the production of notepads, then it will producearrow_forwardThe country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon. 2003 2004 Good Quantity Price Quantity Price Milk 500 $2 900 $3 Butter 2000 $1 3000 $2 Between 2003 and 2004, the percent change in real GDP (based on 2003 as a base year) was Select one: Оа. 58% O b. 190% О с. 60% O d. 130%arrow_forwardQ3. Forecast the demand for the rice for a country for the year 2019 on the basis of 7-year data given in table: Year 2012 2013 2014 2015 2016 2017 2018 Population (millions) 10 12 15 20 25 30 40 Rice consumed (million tonnes) 40 50 60 70 80 90 100arrow_forward
- You are given the following information about the economy Personal consumption 6500 Indirect taxes less subsidies 150 State government consumption 500 Rental Income 2000 Change in business inventories 100 Stock appreciation 80 Gross private domestic Investments 1200 Exports 900 Net factor payments -100 Imports 1200 Depreciation 200 Define and calculate the following: GDPMP, GDPFC, GNPMP,GNPFC, NDPMP,NDPFC,NNPMP,NNPFC. How can price distortions be avoided in a marketarrow_forwardis the GDP of India dependant on the price of oil? Explains it correctly. Not copy pastearrow_forwardBad weather, expensive fertilisers cause vegetable price hike By Nor Ain Mohamed Radhi - November 25, 2021 The New Straits Times KUALA LUMPUR: Poor weather, reduced production, expensive inputs and higher costs of imported vegetables were among the reasons behind the skyrocketing price of greens in the country. Cameron Highlands Vegetable Growers Association secretary Chay Ee Mong said the rainy season has caused low productivity and production of vegetables. "Poor weather conditions have affected the growth of vegetables in Cameron Highlands, causing lower production volumes and recently, we even had landslides. "Also, within these two years, we have been facing a shortage of labour, which has not allowed us to go full swing with our production," he said, adding that expensive inputs of fertilisers, pesticides and grains have also contributed to the increase in vegetable prices. He said vegetables such as cauliflower, broccoli and chillies were imported, therefore they were pricey.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning