Question
In: Economics
8. Draw the goods market. Illustrate and explain how the market equilibrium would change under the...
8. Draw the goods market. Illustrate and explain how the market equilibrium would change under the following circumstances:
a. The U.S. dollar gained value compared to foreign currencies.
b. American corporations have become leaner which means that productivity in the U.S. has increased. Hint: How are prices in the U.S. affected, relative to foreign prices?
c. There is a decrease in transfer payments (ie, items like spending on social programs).
Solutions
Rahul Sunny answered 6 months agoRelated Solutions
Explain how the equilibrium real interest rate and the equilibrium quantity of credit would change in...
Explain how the equilibrium real
interest rate and the equilibrium quantity of credit would change
in each of the following scenarios, and illustrate your answer with
a well-labeled graph of the credit market.
a. As
the real estate market recovers from the 2007 – 2009 financial
crisis, households begin to buy more houses and condominiums, and
apply for more mortgages to enable those purchases.
b. Congress
agrees to a reduction in the federal deficit, which results in a
significant decrease in the...
How would each of the following events change the equilibrium financial market value of a company?...
How would each of the following events change the equilibrium
financial market value of a company? (a)an increase in its cost of
production; (b) an increase in its cost of financing; (c) an
increase in the market’s discount rate; (d) an increase in its
sales revenue; and (e) an increase in its projected future
profits.
26. Explain how balance-of-trade equilibrium is maintained under the gold standard. 27. Illustrate it your explanation...
26. Explain how balance-of-trade equilibrium is maintained
under the gold standard.
27. Illustrate it your explanation with an example
28. What are the arguments that favor a floating exchange rate
system against a fixed exchange rate system.?
29. How can international companies reduce their economic
exposure in a world of constantly fluctuating exchange rates?
Suppose the economy is in a long-run equilibrium. a. Draw a diagram to illustrate the state...
Suppose the economy is in a long-run equilibrium.
a. Draw a diagram to illustrate the state of the economy. Be sure
to show aggregate demand, short run aggregate supply, and long-run
aggregate supply.
b. Now suppose that a stock market crash causes aggregate demand to
fall. Use your diagram to show what happens to output and the price
level in the short run. What happens to the unemployment
rate?
c. Use the sticky-wage theory of aggregate supply to explain what...
Describe the Punctuated Equilibrium of change, and what are the drivers of change under this model?...
Describe the Punctuated Equilibrium of change, and what
are the drivers of change under this model?
Use a company you are familiar with or invent your own to
explain your answer.
Why would private firms underprovided public goods? Explain in detail and illustrate with an example.
Why would private firms underprovided public goods? Explain in
detail and illustrate with an example.
Briefly explain why a decrease in planned investment, which is a change in the goods market,...
Briefly explain why a decrease in planned investment, which is a
change in the goods market, will alter the equilibrium in the money
market. (100 words maximum)
Suppose you are analysing the market for two goods - ice-cream and coffee. (i)Illustrate and explain...
Suppose you are analysing the market for two goods - ice-cream
and coffee. (i)Illustrate and explain the impact each of the
following would have on demand or supply of ice-cream. Also show
how equilibrium price and quantity have changed. a. Cyclone Fani
destroys part of the sugarcane crop and drives up the price of
sugar b. Consumer income falls because of a recession and ice cream
is considered a normal good. c. Producers expect the price of ice
cream to...
Suppose you are analysing the market for two goods - ice-cream and coffee. (i)Illustrate and explain...
Suppose you are analysing the market for two goods - ice-cream
and coffee.
(i)Illustrate and explain the impact each of the following would
have on demand or
supply of ice-cream. Also show how equilibrium price and quantity
have changed.
a. Cyclone Fani destroys part of the sugarcane crop and drives up
the price of
sugar
b. Consumer income falls because of a recession and ice cream is
considered a
normal good.
c. Producers expect the price of ice cream to...
Suppose you are analysing the market for two goods - ice-cream and coffee. (i)Illustrate and explain...
Suppose you are analysing the market for two goods - ice-cream
and coffee. (i)Illustrate and explain the impact each of the
following would have on demand or supply of ice-cream. Also show
how equilibrium price and quantity have changed. a. Cyclone Fani
destroys part of the sugarcane crop and drives up the price of
sugar b. Consumer income falls because of a recession and ice cream
is considered a normal good. c. Producers expect the price of ice
cream to...
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