ssume the following information for an imaginary, closed economy. Consumption = $1,000; investment = $300; Net taxes = $230 %3D %3D rivate saving $200 %3D his economy's government is running a budget surplus of $100. budget surplus of $30.
Q: 16. Suppose country A has abundant labor and scarce capital. Product L requires labor intensive…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 42. Find the equivalent rate of interest of 9% compounded quarterly to an interest rate compounded…
A: Given interest rate = 9 % compounded quarterly Quarterly rate = 9 % / 4 = 2.25 % Annual effective…
Q: Prime Interest Rate Rises Business Investment Falls M1 Rises at Faster Rate M1 Rises More Slowly GDP…
A: Sell Government Bonds then When the government sells bonds, then it is the contraction policy where…
Q: Alter the Solow growth model so that the pro- duction technology is given by Y = zK, where Y is…
A: Given, Y=zK Where, Y=OutputK=CapitalZ=Factor productivityS=Saving rate
Q: Question 27 Calculate the Required Reserves given the following information. rrr .09 %3! Total…
A: Require reserves are the reserves that commercial banks hold as per the requirement of central bank.
Q: * Mind Tap - Cengage Learning EIN EIN G Google Account…
A: The correct answer is given in the second step.
Q: 23. When one country joins a free trade area with a common external tariff, it causes: O a. Trade…
A: The correct answer is given in the second step.
Q: 17. When a large country imposes an import tariff on good X O a. Domestic production of good X…
A: When quantity demanded exceeds quantity supplied the country will import the good because it has the…
Q: Draw the two graphs & explain the market conditions at $50, $60 in the short run & the return to $50…
A: Perfect competition is the market structure where there are large no of buyers and sellers selling…
Q: Sinking Fund is established in which funds will accumulate for replacement. TRUE OR FALSE
A: In business economics, depreciation is considered a fixed cost that a business has to incur.
Q: According to neoclassical economists, a graph of aggregate supply in long run appears: A) Upward…
A: Aggregate supply curve shows relationship between price and quantity supplied in the economy.
Q: 21. If output is above the full employment level, wages will (rise, fall) and the aggregate supply…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and…
A: Here is a wide range of shows that are intended to match deals and costs to the period in which they…
Q: Elon Musk's The Boring Company wants to invest in a subway to be constructed in Metro Manila to…
A: It is given that: MARR = 10%
Q: Q.5 Given the demand functions, (i) Q = 150 − 0.5P, (ii) P = 80 − 2Q, (iii) P = 45…
A: We have Q=150-0.5P ... (1) “Since you have posted a question with multiple sub-parts, we will…
Q: 2 4 6. 7 8. 1000 1200 1400 1800 2000 3.
A: Given timeframe = 8 years From end of year 1 to year 8 , the value of cashflow constantly increases…
Q: 1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I= 300…
A: Disclaimer: As per Bartleby's policy, I am providing you with the answers to the first three…
Q: Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago.…
A: EUAC or, Equivalent Uniform Annual Cost can be calculated by:EUAC = P(A/P, i %, n) - S(A/F, i %, n)…
Q: new generator has just been installed. It is expected that there will be no maintenance charges…
A: Solution given below,
Q: if supply decreases by 30%, would the price increases by the same amount? if not, why
A: A decrease in supply will make the harmony price rise; the amount requested will decrease. To figure…
Q: In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is…
A: We have given two cash flows, the second cash flow is having uniform gradient series from the end…
Q: A vertical aggregate supply graph indicates that aggregate demand has no effect on: A) Prices B)…
A: Aggregate supply curve shows relationship between price and quantity of output supplied.
Q: The distribution of income has become more unequal in developed countries because? Select one:…
A: The distribution of income has become more unequal in developed countries because trade has reduced…
Q: Which of the following is true of effective employee evaluation and feedback? O It should be…
A: When we are considering the evaluation of employees then it is very necessary to evaluate the…
Q: What does it mean by "Transportation" when pertaining to the North American Free Trade Area?
A: There are no import duties or restrictions on items from one nation entering another in a free trade…
Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…
A: The total cost of the generator = P120000 + P10000 = P130 000 Salvage value = 8000 Life = 15 years…
Q: ELASTICITY -What type of elasticity occurs and what is the financial result if: • The elasticity is…
A: When the value of elasticity is less than 1, elasticity is said to be inelastic.
Q: Is the following statement true or false? Explain. A more elastic demand curve yields a greater…
A: The measure that depicts the percentage change in quantity demanded of a product with respect to the…
Q: The firm's production function is given as: Q (L,K) = 2L + 30K. The costs of Labor (L) and Capital…
A: We have Q(L, K)=2L+30K ... (1) w=$20 and r=$2 Desired output=1000
Q: Problem 4 Consider a two-stage game where two players, Ann and Beth, must first decide on a game to…
A:
Q: What does it mean by "Institution-based considerations" when pertaining to strategizing with…
A: Corporate social responsibility include all the business ethics that should be followed by the…
Q: 20. International trade and domestic trade differ because of: Different government policies b. Trade…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Suppose market demand and supply are given by Qd=100-2P and Qs=5+3P. If a price ceiling of $15 is…
A: Given: Qd=100-2P Qs=5+3P
Q: QUESTION 4 A monopolist has the following Demand and Marginal Revenue equations: (Demand) P = 500 -…
A: The lowest price (and maximum quantity) that this firm will ever set would be such a price where…
Q: Hong Kong’s prosperity has become increasingly dependent upon its capacity to play that role…
A: Hong Kong, a previous British settlement that got back to Chinese rule in 1997, is administered…
Q: An amortization of a debt is in a form of a gradient series of P20,000 on the first year, P19,500 on…
A: We have given Year cash flow ( end of the year) 1 20,000 2 19500 3 19000 4 18500 We…
Q: total of Php 5,000 is invested at a simple interest rate of 6% for 4 months. How much interest is…
A:
Q: 3 . An economy experiences an adverse supply shock. a) Draw an AD-AS diagram to illustrate the…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Thich of the following is an example of a negative externality? the benefit you receive when your…
A: Externality refers to cost or benefit that tends to affect people who is not the part of production…
Q: A concrete pavement on a street would cost 10,000 and would last for 5 years with negligible…
A: Given: A street would cost = $10,000 Years = 5 At the end of each 5 years = $1,000 would be spent…
Q: A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000…
A: Present value for the future costs and benefits can be calculated by discounting the costs and…
Q: A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and…
A: Given:- Paid to manufacturer=Ph 250000 freight and insurance=Php 18000 Custom, broker fee=Php 8500…
Q: In the Real Business Cycle model, what is the effective investment and the equilibrium investment?
A: Effective investment refers to the net addition to the capital stock of economy which is measured by…
Q: 37. Calculate the payment (P) 10 years from now that is equivalent to a payment of P2000 five years…
A: Given payment in 5 years from now = 2000 P Interest rate = 12 % compounded quarterly Quarterly rate…
Q: The production function q = K1.2 + 3L1.2 exhibits [increasing return to scale, constant return to…
A: production function, in financial matters, is a condition that communicates the connection between…
Q: 1. In the Malthusian model, suppose that the quantity of land increases. Using diagrams, determine…
A: A Malthusian growth model, often known as a basic exponential growth model, is simply exponential…
Q: 11 The average cost (SR and LR) of Q = 50,000 is $10. / 5o,000,10) Ac SRE LR (s0,000, 1a) %3D With…
A: Given Diagram
Q: 3. The government is considering raising the tax rate on labor income. Explain the supply-side…
A: a. The labor supply will dwindle. The supply of labor curve shifts leftward from LS0 to LS1 as seen…
Q: Question 1: What circumstances are like to make the use of pay-for-performance appropriate or…
A: The Pay for performance model, often known as performance-related remuneration, refers to employee…
Q: 6A business is considering hiring a legal firm. The marginal benefit of the legal services would be…
A: The costs are given as MC= q Fixed costs = $5 for monitoring and $15 for auditing. The total cost =…
Step by step
Solved in 2 steps with 1 images
- G Spending and NTR Budget Deficit Budget Surplus Y1 V1 . I I Y2 V2 je I I Y3 I V3 G NTR Real GDP BL Real GDP In the following graph, NTR is net tax revenue, G is government spending on goods and services, BL is budget line. Which of the following is true? A balanced budget would occur at income level Y1 A balanced budget would occur at income level Y2 A balanced budget could occur at income levels Y1, Y2 or Y3 The existence of a balanced budget cannot be determined because no inflation on tex revenues is given1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?In a closed economy, the gross domestic product is $45,000, consumption is $17,300 and taxes are $8,200. If the national saving is 9,000, then this government will be running: Select one: a. A budget surplus of $10,500 b. None of the answers are correct c. A budget deficit of $10,500 d. A budget surplus of $18,700 e. A budget deficit of $18,700
- Consider an economy in which GDP is $30 billion. Tax revenue is $7 billion, consumption is $15 billion, and the government has a budget surplus of $2 billion. Show your work in each of the following questions. (a) What is the level of government spending?(b) What is private saving?4. A country’s consumer spending is defined by the following equation:Consumer spending = 365 + 0.75 (Disposable Income)a. Draw a diagram to represent this equation. b. Assuming no government, what will the Marginal Propensity to Save (MPS) in this country.c. What will be Consumer spending if disposable income in this country is 1000? d. If suddenly this country’s wealth increases, how do you think the equation might change.Also show it in a diagram.Define saving and investment. Data for the simple economy of Newt show that in 2011, saving exceeded investment and the government is running a balanced budget.What is likely to happen ? What would happen if the government were running a deficit and saving were equal to investment ?
- ECONOMICS An economy has neither imports nor income taxes. The MPC is 0.75 and the real GDP is $120 billion. The government increases expenditures by $4 billion. The multiplier is _____ and the change in real GDP from the increase in government expenditures is _____ billion.Suppose the GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. assuming this economy is closed, calculate consumption, government purchases national saving, and investment. b. imagine that government start with a balanced budget and then, because of an increase in taxes, start running a budget surplus. graphically analyze the effects of the budget surplus on interest rate, saving and investment if loanable funds means the flow of resources available from private savingexplanation. Be sure to exp Assume the United States has been in another recession for the past 10 months. Unemployment is 10% and GDP has dropped $1.9 trillion from its previous peak of $ 20.8 trillion. The housing and heavy equipment industries have been hit the hardest. Inflation has been near the 2% target but has started to dip below. Also, the countries average MPC is 60. Determine the best fiscal policy/strategy to help the economy recover and explain why it is the best choice. Be sure to reference Aggregate Demand and Aggregate Supply and explain your specific tools in your answers. Calculations Explanation Graph (More space for the explanation on the back)
- 4. Consider the following demand and supply schedules of loanable funds. All figures are in billion dollars. Assume zero budget deficits and a closed economy. a. Interest Rate 12% 10% 8% 6% 4% 2% Quantity of Funds Demanded $200 $300 $400 $500 $600 $700 Determine the following equilibrium outcomes: (1) The interest rate. (ii) Private savings. (iii) Government (public) savings. (iv) Private business investment. Quantity of Funds Supplied $1000 $900 $800 $700 $600 $500Government Purchases (G) and Tax Revenues (T) 0 H J K L GDP Refer to the above graph. If the full-employment level of GDP for this economy is at H, the: T O cyclically adjusted budget will produce a surplus. O actual budget will produce a deficit. O cyclically adjusted budget will produce a deficit. O actual budget will produce a surplus. G24. Which of the following is used as a remedial measure during a recession in an economy? a.Decrease taxes and increase government spending b.Increase taxes and government spending c.Decrease taxes and government spending d.Increase taxes and decrease government spending