11) Which of the following statements is FALSE? A) Government spending in excess of government revenues is called budget deficit. B) Demand for housing and automobiles is highly sensitive to interest rates. C) The market value of all final goods and services produced during a given period is called GDP. D) An increase in the money supply or a decrease in interest rate by the Federal Reserve will cause inflation to fall.
Q: Which of the following factors affect the Aggregate Demand curve? Choose all that apply.…
A: Aggregate Demand = Private consumption demand + Private investment demand + government purchases +…
Q: You have three choices in placing your money in a bank account. • Bank A pays 6.12% compounded…
A: According to question information given is as follows:- Bank A pays 6.12% compounded annually. •…
Q: Which of the following factors affect the Long-Run Aggregate Supply curve? Choose all that apply.…
A: The Long-Run Aggregate Supply (LRAS) curve shows the potential output of an economy in the long run,…
Q: 5. Free-trade benefits There are a number of good outcomes associated with international trade for…
A: Free trade is a strategy where a government doesn't favor certain exporters over others or interfere…
Q: = Gina acts as if she maximizes U =x^\frac{1}{2} + y^\frac{1}[2} with income Y=16, and prices Px…
A: Whether the income falls, or the price of any good rises, the consumer will face a loss in utility.…
Q: As the article notes, Atkinson argued that "[inequality] cannot, in general, be measured without…
A: One of the most scholars is Tony Atkinson. His entire life was devoted to examining and…
Q: A good's demand is given by: P = 468-3Q. At P = 155, the point price elasticity is: Enter as a value…
A: Introduction Elasticity is a measurement of how sensitive a quantity is to one of its determinants,…
Q: Using the AD-LRAS model, an increase in capital accumulation cause the price level to ["", "",…
A: The Aggregate Demand-Long-Run Aggregate Supply (AD-LRAS) model is an economic framework for…
Q: 6. Eurozone monetary policy True or False: All countries that are part of the eurozone are subject…
A: Globalization is the process of uniting and integrating the world through trade and technology.…
Q: Economists systems describe how a society distributes scarce resources. Contrast how resources are…
A: An economic system is a set of institutions, policies, and practices that determine how a society…
Q: Assuming a $7 per unit tax is imposed, the new quantity traded is _____. a) 10 b) 12…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: You are studying the market for a particular brand of perfume. You notice that a couple of changes…
A: Deamnd curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: Republika UPLB has 50 workers. It produces only coffee and white cheese. The production of these two…
A: Production possibility curve shows the combination of two goods that can be produced with the use of…
Q: The current version of rent control in many parts of California prevents rents from rising with…
A: Rent control refers to a set of government policies that limit the amount of rent that landlords can…
Q: What multiplier would you use to work out a decrease of 20%?
A: A multiplier in economics describes the connection between changes in an exogenous variable, such as…
Q: The figure shows the production possibility frontier for a country. What is the opportunity cost to…
A: The production possibilities curve (PPC) is a graph or figure that illustrates all of the…
Q: (Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply. The figure shows how…
A: The equilibrium occurs where the demand and supply are equal. The change in the demand or supply…
Q: Problem 2. Consider the given strategic form game. L M₂ R U 6,3 1,2 4,2 M₁ 1,1 5,2 6,4 D 4,4 4,3 0,2…
A: L M2 R U 6,3 1,2 4,2 M1 1,1 5,2 6,4 D 4,4 4,3 0,2
Q: Problem 5 (Watson 10.2 a-c). Consider a more general Bertrand model than the one presented in this…
A: Price description in economics refers to the numerical value assigned to a good or service in a…
Q: In the _____ health care model, adverse selection is minimized/eliminated. a.completely private b.…
A: Health economics is essential because it investigates how stakeholders' and recipients' economic…
Q: From the end of 2007 to the end of 2008, M1 changed from $1,597 billion to $1,690 billion. By what…
A: The most liquid forms of money in an economy that is physical currency (banknotes and coins) held by…
Q: 4. A firm has production function q = KL. The wage and rental rates are both 10. Does this…
A: The production function is a concept in economics that describes the relationship between inputs and…
Q: Assume that demand for a commodity is represented by the equation P = 20 – 0.4Qd and supply by the…
A: Equilibrium in a market is a point whereby the demand and the supply curves intersect each other.…
Q: Which of the following would shift aggregate demand to the left? Choose all that apply. Group of…
A: The main components of the aggregate demand curve are the consumption spending, government…
Q: Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta…
A: When individual-level randomization is not achievable, the difference-in-difference method can be…
Q: 3. If the amount of economic reserves (S) = 10 million tons and the annual consumption rate (U) is…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A firm produces output via the function: Q = L - (L2/800), where Q is the output per week and L is…
A: Given information: Q = L - (L2 / 800) -----------> Production function. Where Q is the output…
Q: Total reserves: $ 90 billion Transactions deposits: $ 750 billion Cash held by public: $ 400 billion…
A: Money supply is the stock of money in the economy in particular period of time.
Q: If aggregate supply is vertical, then which of the following statements must be true? Aggregate…
A: Aggregate Demand(AD) and Aggregate Supply(AS) A macroeconomic model known as the aggregate…
Q: Domestic producers of microprocessors send a lobbyist to the U.S. government to request that the…
A: Free trade is defined as international trade that is conducted without constraints or barriers.…
Q: Scenario 6-3. Suppose that the government introduces an EITC such that for the first $8,000 in…
A: Earned Income Tax Credit (EITC) is a federal tax credit applied mostly for working people with low…
Q: At i = 10% per year, find the present worth (PT) of the following cash follow $300 A=$500 $700 t 0 1…
A: The present worth of a cash inflow or outflow refers to its current value in accordance with its…
Q: Assume no Washington income tax, and Washington has a $4M grant to spend. Zoe Wu tells the mayor…
A: Social welfare policy refers to the set of government programs, laws, and regulations that aim to…
Q: 1. Please explain what would happen to the market-clearing prices and quantities of e- cigarettes in…
A: The market clearing price is the price at which the demand for a decent by shoppers is equivalent to…
Q: (a) In Figure A, Supply and Demand do not make a market because the market is not at equilibrium.…
A: While “supply” refers to the total amount of a product made accessible on the market, the term…
Q: Republika UPLB has 50 workers. It produces only coffee and white cheese. The production of these two…
A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…
Q: 7. A perfectly competitive firm can sell its product for a price of 10. The firm's (short run) total…
A: A market with many buyers and sellers in the market is said to be a perfectly competitive market. A…
Q: 10. Elegant Settings manufactures stainless steel cutlery. Quantity (sets) 100 200 300 400 500 Long…
A: Economies of scale refers to the cost advantages experienced by a firm when it increases its scale…
Q: (Table: Employment and Output in the Buckwheat Market) Use Table: Employment and Output in the…
A: The profit-maximizing quantity of labor is the level of employment that maximizes a firm's profits.…
Q: Explain what market inefficiencies derive from monopolies and monopolistic competition. Use examples…
A: Market inefficiencies are circumstances where a market's distribution of commodities and services is…
Q: Consider the location game we covered in Lecture 3. Now assume there are three players (vendors). As…
A: The Hotelling game is a spatial competition model that describes the behavior of two firms competing…
Q: The partial data in the table below are for the economy of Arinaka. Planned investment, government…
A: Aggregate expenditure (AE) is the sum of consumption (C), investment (I), government spending (G),…
Q: A decrease in the price of a productive resource will result in each of the following except a(n):…
A: Introduction This idea was developed under the assumption that the customer's earnings, the price of…
Q: 1.) In an endowment economy with market exchange, let two consumers have preferences given by the…
A: Indifference curve is a graphical representation that shows the possible combinations of two goods…
Q: economi analysis of nutua Design: 101 a bridge design firm is performing highway overpass. The steel…
A: EUAC stands for Equivalent Uniform Annual Cost. It is a financial measure that is used to compare…
Q: Eren’s two main hobbies are taking vacations overseas (V) and eating expensive meals (M). His…
A: Compensating variation: When the price of a good changes and hence the consumption bundle, that new…
Q: You are charged with choosing a vendor to produce a new software that is going to benefit your…
A: The present worth of a project or an investment refers to its current value in accordance with its…
Q: If TC=42+ 20Q+4Q2, what is the marginal cost at when Q=10? Enter as a value.
A: The marginal cost in economics is the variation in total production costs that results from creating…
Q: If sellers expect the price of cars to increase next year, what will happen to the supply curve for…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: We obtain the following demand curve of beef in a market: Q = 30302.189-4303.602 In(P), where Q is…
A: The elasticity of demand describes how customers' consumption patterns change as the price of a…
Step by step
Solved in 3 steps
- Fiscal policy refers to a) the spending and taxing policies used by the government to influence the economy. b) the behaviour of the nation's central bank, regarding the nation's money supply. c) the techniques used by a firm to reduce its tax liability. d) the government's ability to regulate a firm's behaviour in the financial markets.One of the fiscal measures of dealing with inflation is: a. Implement a budget surplus b. Operate a budget deficit c. Increase the rate of interest d. Operate a balance budgetA2) Economics When there's a large and ongoing budget deficit, under which scenario is inflation most likely to increase? Group of answer choices A)the central bank purchases a large portion of the government bonds B)most purchases of government bonds are by members of the nation C)global investors purchase a large portion of government bonds D)when there's crowding out as a result of the large budget deficit
- The economy is at full employment, with fairly low levels of unemployment and inflation. What is likely to happen to GDP, unemployment, interest rates, and inflation if: a) the government increases its surplus. b) the government increases its deficit. c) the government increases its surplus at the same time that the Fed is reducing the money supply. D) the government increases its deficit at the same time that the Fed is reducing the money supply. e) the government increases its surplus at the same time that the Fed is increasing the money supply.Your company has been trying to grow since its creation in the year 2000, and the board of directors is dissatisfied that your department’s advertising budget has increased 40% since the year 2000 but that little growth has occurred as a result. What argument might you make in your defense? Select one: a. While the nominal value of the budget has grown 40%, the real value (adjusted for inflation) has dropped sharply, so we have been lucky to even stay in business over these years. b. While the real value of the budget has grown 40%, the output of the national economy (as indicated by the mild growth of the GDP deflator) has been stagnant, so our lack of company growth is no surprise. c. While the nominal value of the budget has increased 40%, the real value has increased even greater than that, so the lack of growth has to be attributable to another department of the company. d. While the nominal value of the budget has grown 40%, the real value (adjusted for…In the United States, the various state governments almost all have laws that require them to balance their budgets, every single year. Such a law would require them to ___during a ____ , resulting in a ____ recession. recession ,boom ,bigger, smaller, decrease taxes, increase taxes
- The economy goes into recession. Which of the following lists contains things policymakers could do to try to end the recession? a. Increase the money supply, increase taxes, decrease government spending b. Decrease the money supply, increase taxes, decrease government spending c. Increase the money supply, increase taxes, increase government spending d. Increase the money supply, decrease taxes, increase government spending34. Discretionary fiscal policy refers to A) deliberate government efforts to stabilize the economy through government spending and taxes. B) the use of automatic stabilizers and intervention policies to stabilize the economy. C) any government policy that requires a lag period of at least three months. D) the deliberate use of government spending and taxes to complement the effects of monetary policy in an effort to stabilize the economy. 35. An inflationary gap can be closed with A) using an expansionary monetary policy. B) using a policy action such as a reduction in taxes. C) using a policy action such as a reduction in government purchases. D) imposing price controls to prevent prices from rising. 36. The term “crowding out” refers to the phenomenon that occurs when increased government spending A) raises the price level and reduces consumption. B)…The economy is experiencing rapid inflation, pushing above 9%. Which fiscal policy action should the government implement in an attempt to fix this problem? A.) decrease interest rates B.) raise taxes C.) increase spending D.) increase reserve requirements
- 1. Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is now in a recession. Macroland implements a combination of expansionary fiscal and monetary policies. What will be the effect of these policies on each of the following? i. Aggregate demand in Macroland ii. The price level in Macroland.iii. Explain the effects of expansionary fiscal policies on interest rates in Macroland. iv. Explain the effects of expansionary monetary policies on interest rates in Macroland.An economy is operating with output $50,000,000 below the natural rate of output. Fiscal policy makers want to close this recessionary gap. The central bank agrees to adjust the money supply to keep the interest rate constant, so there will be no crowding out. The marginal propensity to consume is 0.75, and the price level is completely fixed in the short run. 3. How much would government spending need to increase (use a negative number if it needs to decrease) to restore the economy to full employment? 4. How much would taxes need to increase (use a negative number if it needs to decrease) to restore the economy to full employment?When fighting a recessionary gap, central banks will amount of loans being provided by commercial banks. Select one: a. Increase; decrease b. Decrease; increase the bank rate in order to