Fiscal and monetary policy may be used to help an economy recover and get out of a slump. Explain 2 possible problems or drawbacks that this may cause (6)
Q: A market is an interaction between buyers and sellers for trade or exchange. The consumer sells and…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: -233 1636 2 5 20 15 10 0 has the comparative advantage in producing wine and who has the comparative…
A: Opportunity cost is the value of what we lose whenever we take decision between two or more…
Q: A machine was purchased at an original cost of P3,250,114 with a salvage value of P386,985. The…
A: The depreciation rate per unit using the service output method of depreciation is calculated as…
Q: John Doe who plans to deposit $5,000 at the beginning of each year for the next seven years to save…
A: The term "future value" (FV) refers to a method of estimating how much cash or an asset's present…
Q: Which of the following statements is a challenge to the use of natural gas? a. Fracking has decrease…
A: Natural gas, coal, nuclear are different sources of energy.
Q: Question 37 Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion. Also, assume…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What happens to cash and deposits when: • cr = 0 • rr = 0.2 • Initial cash = $5000 How would the…
A: The commercial bank creates money by advancing the loan to the general public. The money creation…
Q: An industry has two firms. Firm 1's cost function is c(y) = 3y + 200 and firm 2's cost function is…
A: Profit maximizing quantity is such quantity where marginal revenue equals marginal cost.
Q: You are now required to compute the consumer price index (CPI) and the inflation in one village. To…
A: Given : Products Quantity Rice 3kg Meat 1.5kg Vegetable 3kg
Q: Answer questions 5-7 based on the following information: Suppose that the production function for…
A: Given:F(L,K)=L14K12w=2r=4 FC= $100
Q: Demand is given by QD=620-10p and supply is given by QS = 100+ 3p. What is the price and quantity…
A: According to the question, the demand equation is:- QD=620-10p And the supply equation is:-…
Q: Question 2 of 3 Fill in the blanks: The owner's plan was to generate Php9M per year in sales by…
A: Net present value = Present value of benefits - Present value of costs
Q: Based on Gross Domestic Product, discuss how increasing the labour force participation rate of…
A: The total amount of products and services produced within an economy is referred to as the gross…
Q: Suppose the hourly wage is $25, the price of each unit of capital i $50, and the price of output is…
A: Given information: Q = (EK)0.5 Wage rate (w) = $25 Cost of capital (r) = $50 Price of output (P) =…
Q: With the aid of a diagram, explain the meanings of 'pecuniary price", 'non- pecuniary price' and…
A: Pecuniary price is the price paid by the consumers that is lower than the market price. Lower price…
Q: Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean…
A: In the context of economic theory, perfect competition describes a scenario in which all firms sell…
Q: To promote long-run growth, the primary economic function of the financial system is to: Group of…
A: Financial systems that work efficiently distribute resources to people with the finest ideas and…
Q: Define a public good. Give an example of a public good using your definition. Explain how to…
A: Goods and services are produces in an economy to satisfy the needs and wants of the consumers in the…
Q: Paige runs a ferret farm in Athens, Georgia. Paige pays $1500 a week for equipment and $800 a week…
A: Total cost is a sum of fixed cost and variable cost. Variable cost here is the labor cost and fixed…
Q: 38. Which of the following statements on energy efficiency gap is correct? a. It is mainly due to…
A: As per the defination Energy efficiency gap is the difference between the cost-minimizing level of…
Q: A bond with face value of P10,000 with a bond rate of 5% payable annually is to be redeemed after 10…
A: Face value alludes to the dollar value of a monetary instrument when it is given. The face value of…
Q: At Emily's bagel shop, the cost to make a homemade bagel is $3 per bagel. As a result of selling…
A: Producer surplus is the distinction between how much an individual might want to acknowledge for…
Q: The demand and supply functions for good x and good y are given as: Q = 145-2Px + Py Q= = -45 + Px Q…
A: Introduction Demand for a commodity is the amount of a commodity that a consumer will purchase it at…
Q: Price P3 P2 P₁ A C Q₂ After the imposition of the tar exports Q1 to Q4 Oexports Q2 to Q3 imports Q1…
A: The world price is less than the domestic price. Thus there will be a import of good from rest of…
Q: 5. Monetary policy will have a large impact on output if ___________. a. the LM curve is…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A…
A: The economic theory of supply and demand seeks to explain the link that exists between the…
Q: . Farmer Brown plants both soybeans and corn. If the price of soybeans increases and the price of…
A: The law of supply expresses that there is a positive connection among costs and amount provided or…
Q: Consider the following strategic game (both players move simultaneously): Up Down Left 0,0 8,5 Right…
A: Nash Equilibrium tells us the best response of both the players given what the other player is…
Q: What happens on the aggregate demand curve when there is a rise in the price level which causes a…
A: Aggregate demand curve is the downward sloping curve which mea s there is inverse relationship…
Q: Solve for the following (provide solutions) 1. Equilibrium Output (Y*) 2. The consumption level…
A: The equilibrium level of income in a Keynesian cross model is determined by the intersection of 45…
Q: QA-7-.5P Qa-10-P Qc=18-3P Make a price quantity chart for each consumer. Then add a column showing…
A: In perfect market competition the optimum quantity is produced where the demand curve and the supply…
Q: Suppose the price elasticity of demand for a good called "widgets" is 0.4. Is this good more elastic…
A: The price elasticity of demand measures the quantitative relationship between the price and quantity…
Q: ent the consumer price index. If the rate of inflation of the price nd the price index has a base…
A: *Answer: Change in price index: p. = 2+3t + 0.5it p0 =100 Consumer price index (i )= Change in…
Q: Explain why most indifference curve are convex??
A: In economics the indifference curve is usually denoted as the contour line merely where the value of…
Q: An increase in equilibrium quantity can be caused by (both options must be true) O a decrease in…
A: Market is in equilibrium when market forces interact and intersect at certain price level and…
Q: What does the price elasticity of demand coefficient of 1.2 mean? Does the product have an elastic,…
A: Formula to calculate price elasticity:- ed=Percentage…
Q: If government tax policy requires Bill to pay $20,000 in taxes on annual income of $200,000 and Paul…
A: Given: Amount that Bill has to pay as per the tax policy = $20000 His Annual Income = 200000 Amount…
Q: When capital increases by ΔK units and labor increases by ΔL units, and there is no TFP growth,…
A: Capital is regularly money or liquid assets being held or gotten for consumptions.
Q: In-country 2, each month everyone is sent $7000 by the government, and no one can earn anything…
A: American political philosopher with liberal leanings, John Rawls. According to his interpretation of…
Q: Jimmy Carpenter, a self-employed individual, is opening a retirement account at a bank. His goal is…
A: In the part a, The future value of 20 payments is $1,000,000 rate of interest (i)=8% yearly…
Q: Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting…
A: Marginal Profit (MP) is the expansion in benefits coming about because of the development of one…
Q: Which of the following is an expansionary fiscal policy? increase in taxes only both increase in…
A: Usually in the simple language we can say that the expansionary fiscal policy is usually known to be…
Q: Without the use of a graph, explain why the perfectly competitive outcome is consistent with welfare…
A: Perfectly competitive market refers to the market where many sellers and buyers exist in the market.…
Q: year, the national money supply was equal to $200 billion and by the end of the year it was equal to…
A: The LM curve represents the combination of all levels of real income and interest rates at which…
Q: an American multinational that sells consumer electronic products, has manufacturing facilities in…
A: The amount of output at which a company's earnings are maximized is referred to as the optimum…
Q: Real GDP C 177 170 163 142 250 240 230 200 100 I 54 54 54 54 72 54 The above table shows the real…
A: Equilibrium aggregate expenditure is occur when the Real GDP is equals to Aggregate expenditure so…
Q: Aang and Bolin are playing a simultaneous-move game where they seek to maximize their utility…
A: Nash Equilibrium:- In order to predict the optimal results, it conceptualizes player behavior and…
Q: Plz do it asap
A: "Long-term Care" referes to providing assistance to people of all ages for their medical needs or…
Q: 2. This week's reading examined the historical move from studying economic geography by focusing on…
A: Economic change, which may be characterized as a change in the economy's structure, policies, or…
Q: Q4. Ms. İpek wants to make auto insurance for her car worth 250,000 TL. Historical data shows that…
A: Given Ms. Ipek's car is worth (W) =250,000 The probability to have accident of 50,000 in a year is…
Step by step
Solved in 2 steps
- Task Three Explain how the application of monetary and fiscal policy might be used to stimulate a country's economy. Use an example of a country with which you may be familiar.Explain how a severe drought in a country whose main activity is agriculture can affect: The gross domestic product of that country The unemployment rate The price index of agricultural productsTitle Suppose that the business cycle in Canada is best described by RBC theory. An advance in technology. Description Suppose that the business cycle in Canada is best described by RBC theory. An advance in technology increases productivity. a. Draw a diagram to show the effect of the advance in technology in the market for loanable funds. b. Draw a diagram to show the effect of the advance in technology in the labour market. c. Explain the when-to-work decision when technology advances.
- A2) Economics Governments use targeted financial programs to support the production and purchase of energy efficient appliances for firms and households respectively. Discuss one (1) implication of this government policy on firms and households each and relate to the major concerns of macroeconomics. Major concerns of macroeconomics include output growth, inflation and unemployment rate.Economics The economic growth rate in Disney Land is 1%, the unemployment rate is 5%, and inflation is running at 3%. Given these conditions, select the choice below that best describes the current performance of Disney Land's economy (a) depression (b) recession (c) sluggish growth (d) moderate growth (e) strong growth (f) inflationary episode (g) stagflationANSWER THE FOLLOWING QUESTIONS: (Detailed responses (4-5 paragraphs for each question. No short answers please 1. Why did the unemployment rate increase in the year 2020? 2. How has the pandemic impacted inflation? 3. How did Covid-19 effect the stock market? 4. What was the potential impact of Covid-19 on GDP (gross domestic product) and trade? A. Provide an introduction and the background of your study, and clearly state what your research question or objective is. What real world issue are you going to research; ie your research idea or objective: III. Briefly explain how the economic theory is related to your real world topic Recent Trends of Real-World Evidence Report: Produce a report of facts/information to educate us about your chosen real world application. Find news items/articles that provide verifiable facts/data related to your topic of interest (views and opinions expressed via social media are not credible since they are not facts)). These should report recent…
- Explain how a recession can affect the aggregate demand of an economy. Your explanation should include a relevant example of such a recession and its effects on economies in general and emerging economies in specific (like UAE). (1000 words2. The lowest level of the output gap during the Great Recession was -7.46% in July 2009. (a) Economists estimate the multiplier for the US economy to be 1.5. If this is true, what is ? (b) What would the percent change in government expenditure be to close this gap, assuming monetary policy is not being used?(c) Between 2018 and 2021, GDP measured in current prices fell from RM96 billion to RM48 billion. Over the same period, the relevant price index fell from 100 to 75. Calculate: (i) The percentage decline in nominal GDP from 2019 to 2021. (ii) The percentage decline in real GDP from 2019 to 2021. During the pandemic, the Malaysian real GDP is substantially lower than it was predicted prior to pandemic era. Prior to the pandemic, the economy is expected to grow at 5.5% per annum. However, due to the covid-19 disaster, the Malaysian economy now is expected to grow at 4.1%. A significant 1.4% lower than previously expected. (d) Explain the above statement in terms of the Malaysian citizens well-being.
- Practice Your Knowledge of Business Cycles. Explain each of your choices. (A) For two straight quarters, business inventories increase at a sharp rate. This most likely indicates * an expanding economy * a recovering economy the beginning of * a recession an increase in inflation * a record unemployment rate (B) At which point in the business cycle is there the largest inflationary gap? * The peak *The trough * During expansion During contraction * At full employment (C) If the consumer price index begins to increase dramatically, which of the following is likely true? * The output gap is positive and near the peak. * The output gap is positive and near the trough. * There is no output gap and the economy is growing. * The output gap is negative and near the peak. The output gap is negative and near the trough.Suppose you have 6000 dollars in savings when the price index is at 100 (a) If inflation pushes the price level up by 10 percent, what will be the real value of your savings? (b) What is the real value of your savings if the price level declines by 5 percent?Economic Growth Unemployment Rate Inflation Rate Last Year This Year Next Year (Forecast) 2.5% 6.2 % 2.0% 1.5% 2.6% 2.5% 2.3% 8.5% 9.6% 1. Using the chart above, write a short description highlighting positive and negative indicators of the current economy's performance. 2. What BROAD strategy (expansionary, contractionary, or neutral) policy should the government follow and why? Then, what SPECIFIC fiscal policy actions (changes to taxes/spending) do you recommend at this time? What SPECIFIC economic problem may this action cause?