Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 3RQ
To determine
Explain the good ‘ic’ model equilibrium.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is an economic assumption?
What is an equilibrium condition? How do we that we have an equilibrium
condition?
Differentiate between an exogenous variable and an endogenous variable in an economic model? Why isn’t it useful to construct an economic model that contains only exogenous variables (and no endogenous variables)?
Knowledge Booster
Similar questions
- Based on these data, describe the relevant relationship between the price of a hamburger and the quantity consumers are willing to purchase, using a verbal statement, a numerical table, and a graph. Which model do you prefer? Why?arrow_forwardIn the Salop circle model, if all consumers get more pleasure from ice cream (u increases), how does the equilibrium change?arrow_forwardI need help with this question! How can I draw a model for it?arrow_forward
- An endogenous variable is a variable explained by an economic model. An exogenous variable is a variable that is taken as given and is not explained by an economic model. True O Falsearrow_forwardRecent research by economists David Cutler, Edward Glaeser, and Jesse Shapiro on Americans' increasing obesity points to improved technology in the preparation of tasty and more caloric foods as a possible explanation of weight gain. Before World War II, people rarely prepared French fries at home because of the significant amount of peeling, cutting, and cooking required. Today French fries are prepared in factories using low-cost labor, shipped frozen, and then simply reheated in homes. Paul consumes two goods: potatoes and leisure, N. The number of potatoes Paul consumes does not vary, but their tastiness, T, does. For each extra unit of tastiness, he must spend p hours in the kitchen. Thus, Paul's time constraint is N+pT = 24, and Paul's utility function is U = Paul's marginal rate of substitution (MRS), with T measured on the horizontal axis and N measured on the vertical axis, is N MRS = 2. (Properly format your expression using the tools in the palette. Hover over tools to see…arrow_forwardWould the assumption that goods are perfect substitutes be valid in a study of intertemporal food purchases? Explain with graphic.arrow_forward
- Explain the difference(s) between an economic and an econometric model.arrow_forwardWhat is the difference between static and dynamic analysis in economics? When is each appropriate?arrow_forwardPLEASE FILL IN THE CHART BELOW FOR THE ARTICLE!! Microeconomics For the article, write the number of the graph that best describes what happened. Fill in only the appropriate boxes in each chart for each article and be sure and indicate if it is an increase or a decrease. HANDBAGS What happens when the hot handbag trend is to not buy a new one? Sales of premium handbags and accessories in North America are forecast to decrease Caroline Cooper, a 21-year-old sales associate from Rockland County, N.Y., said she would rather spend her money going to restaurants and Broadway plays.“I don’t need another handbag,” she said. The change in spending habits poses a challenge to handbag makers that are already feeling the effects.Handbag sales are also suffering from fewer tourists. Instead shoppers are spending the money they are saving from lower gas prices on entertainment rather than on goods like clothing and accessories. Fill in the Answer sheet for the article. Make sure you fill in the…arrow_forward
- Why would you rather use real variables in an economic analysisarrow_forwardQuestion 2.A write a short note about the following variables and support your answers by giving examples for each variable: TFC: TC: VC:arrow_forwardEconomists use the scientific method to study the economy. David Matthews is an economist studying the effect of cold weather on the purchasing of streaming movies. Place the following steps in order. David notices that people tend to stream more movies at home when the weather is cold outside. David comes up with the theory that home streaming platforms will have more business in the winter months than at other parts of the year. David arranges to follow the streaming habits of a thousand different families. He will also record the weather on each day. At the end of the year, David will see if his theory was correct by comparing the number of movies downloaded with the weather for certain days. He will then decide if his theory was correct.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning