Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 5RQ
To determine
Price level.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
5. Refer to the data in the table that
accompanies problem 2. Suppose that
the present equilibrium price level and
level of real GDP are 100 and $225, and
that data set B represents the relevant
aggregate supply schedule for the
economy. LO12.6
a. What must be the current amount of
real output demanded at the 100 price
level?
b. If the amount of output demanded
declined by $25 at the 100 price level
shown in B, what would be the new
equilibrium real GDP? In business
суcle
economists call this change in real
terminology,
what
would
GDP?
Fill in the missing portion of the following table and answer the following questions:
(Billions) (Negative figures are surpluses)
Year
2007
2008
2009
2010
2011
Potential
Nominal GDP
O248 billion
O262 billion
O 413 billion
O 348 billion
14,449
14,981
15,310
15,647
16.134
Actual
Nominal GDP
14,478
14,719
14,419
14,964
15,518
Shortfall in
Output
-29
262
892
682
616
Tax Rate
25%
25%
25%
25%
25%
What was the structural budget deficit in 2008?
Actual Budget
Deficit (Minus
Automatic
Stabilizors)
183
413
1,063
877
891
Cyclical
Budget Deficit
S
66
154
Structural
Budget Deficit
190
707
Actual Budgot
Deficit % of
GDP
1.26%
5.86%
5.74%
ADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation
P = 100-3Qd-
Supply is represented by the equation
P= -10 + 3Q,,
where Qd and Qs are quantity demanded and quantity supplied, respectively, and Pis price.
Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number.
Using the equilibrium condition Qs Qd solve the equations to determine equilibrium price and equilibrium quantity.
Equilibrium price = $ 50
Equilibrium quantity = 20
units
Chapter 12 Solutions
Macroeconomics
Ch. 12.7 - Prob. 1QQCh. 12.7 - Prob. 2QQCh. 12.7 - Prob. 3QQCh. 12.7 - Prob. 4QQCh. 12.A - Prob. 1ADQCh. 12.A - Prob. 2ADQCh. 12.A - Prob. 1ARQCh. 12.A - Prob. 2ARQCh. 12.A - Prob. 1APCh. 12.A - Prob. 2AP
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5P
Knowledge Booster
Similar questions
- Based on Figure 3, choose the right statement. 1) Growth in output is protrade because the cloth output increased and corn output decreased, and growth in consumption is protrade because consumption of corn increased more than that of cloth. O 2) Growth in output is not protrade because the cloth output increased and corn output decreased, and growth in consumption is protrade because consumption of corn increased more than that of cloth. 3) Growth in output is protrade because the cloth output increased and corn output decreased, and growth in consumption is protrade because consumption of cloth increased more than that of corn. Growth in output is protrade because the cloth output increased and corn output decreased, and growth in consumption is not protrade because consumption of corn increased more than that of cloth. Figure 3. Economic growth Com (Tons) 80 70 20 10 A 30 III E VII 2 120 PB-1 PM-PB-1 M 250 Cloth (Yards)arrow_forwardEconomics • With the following points of one input x and one output y, o Draw production possibility set satisfying free disposability o Draw production possibility set satisfying free disposability and convexity o Draw production possibility set satisfying free disposability, convexity, and constant returns to scale Data Input x output y Point A 3 Point B 2 7 Point C 3 Point D 4 6 Point E 8 LOarrow_forwardIf national income increases by $75 million and consumption increases by $15 million, the marginal propensity to consume is O 0.20. O 0.75. O 0.15. O 5. Show Transcribed Text SO 1.70. 3 The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States, with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. This indicates that the spending multiplier for the restaurant industry is equal to 1.21. 4:25. Ⓒ 2.05. Ćarrow_forward
- Question 1 The Consumer Price Index (CPI) is designed to reflect O only prices faced by consumers in their purchases with discretionary income O only prices faced by consumers for essential goods and services O only prices faced by consumers for personal entertainment O all prices faced by consumers Question 2 The Personal Consumption Expenditures Price Index (PCEPI) is design to reflect Oonly prices faced by consumers in their purchases with discretionary income Oonly prices faced by consumers for essential goods and services Oonly prices faced by consumers for personal entertainment. all prices faced by consumers TI Att 9arrow_forward- Principles of Economics 1| S1 21/22 Tim What is the impact on the housing market due expectations of higher housing prices next year? Select one: O a. Both the equilibrium price and the quantity traded will increase O b. The equilibrium quantity traded will increase but the impact on the equilibrium price is uncertain Oc. Both the equilibrium price and quantity will fall O d. The impact on equilibrium price and quantity is uncertain Oe. The equilibrium price will increase but the impact on the equilibrium quantity traded is uncertainarrow_forwardWhat is meant by The Wealth Effect? a) As prices for outputs rise, it will be necessary for people making purchases to switch to higher-paying jobs. b) The relationship between the total quantity of goods and services demanded and the price level for output. O c) As the price level increases, the buying power of wealth that people have stored up in bank accounts and cash will diminish, eaten away to some extent by inflation. d) The maximum quantity that an economy can produce given its existing levels of labor, physical capital, technology, and institutions.arrow_forward
- O E $200 The Italian economy can be characterized by Equation 24.1. EQUATION 24.1: C= 300 + 0.8Yd G = 400 T = 200 I= 200 Refer to Equation 24.1. The equilibrium level of output for the Italian economy is Lütfen birini seçin: O A. $3,700. O B. $2,850. OC $3,800. O D.$3,500. O E $3,145. The Italian economy can be char erized by Eguation 24.1arrow_forwardRefer to the information provided in Table 7.5 below to answer the question(s) that follow. Table 7.5 Price per Unit in Units Purchased 2014 2016 2013 $2.00 2015 $2.00 $2.10 O2.40 $2.50 $3.00 $3.50 $4.00 Blueberries $2.00 Pineapples Cheese $2.50 $2.50 $3.00 Refer to Table 7.5. Suppose 2015 is the base year. The price index in 2014 is Select one: a. 97.4. b. 106.1. c. 94.2. d. 123.0. O53arrow_forwardQuestion 17 Joe has a full-time construction job and also does odd jobs for people on the weekends but does not report this income to the government. You have purchased the materials needed to construct a fence at your house and you pay Joe $500 to build the fence. Does the payment to Joe count toward the value of gross domestic product (GDP)? O a) No, his is a nonmarket activity. O b) Yes, the fence increases the value of your house. Oc) Yes, all income earned counts in GDP. O d) No, this income is not reported to the government. O e) No, this is a leisure activity.arrow_forward
- Price $12 $10 $8 $6 $4 $2 Table 3 D1 LO 5 8 11 13 16 18 D2 O a 15 unit surplus will result.. O a 10 unit shortage will result. O a 15 unit shortage will result. O a 10 unit surplus will result. 9 12 15 18 21 24 S₁ 19 17 15 13 11 9 S2 14 12 10 8 6 4 Suppose that D2 and S2 are the demand and supply schedules for Product A. If the government imposes a price ceiling of $4, then:arrow_forwardWill the equilibrium price of orange juice increase or decrease in each of the following situations? LO7a. A medical study reporting that orange juice reduces cancer is released at the same time that a freak storm destroys half of the orange crop in Florida. The prices of all beverages except orange juice fall in half while unexpectedly perfect weather in Florida results in an orange crop that is 20 percent larger than normal.arrow_forwardADVANCED ANALYSIS Assume that demand for a commodity is represented by the equation P = 20 – 2Qd. Supply is represented by the equation P = -5 + 3Qs, where Qgand Qs are quantity demanded and quantity supplied, respectively, and Pis price. Instructions: Round your answer for price to 2 decimal places and enter your answer for quantity as a whole number. Using the equilibrium condition Qs= Qd solve the equations to determine equilibrium price and equilibrium quantity. Equilibrium price = $ Equilibrium quantity = unitsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education