Use the IS-LM-PC model to explain how the economy adjusts to an increase in taxes in the medium run. Assume that the economy starts at a medium run equilibrium No graph necessary. Be sure to specify which curve shifts in the medium run. State how output, inflation, and the real interest rate change relative to the initial point where the economy started. Make sure that you state how inflation evolves differently under anchored expectations and under backward-looking expectations.

Universal widget produces high-quality widgets. Its total cost function is given by ?? = 0.25? 2 . Widgets are demanded in Australia (where the demand curve is given by qA = 100 – 2PA) and in Lapland (where the demand is given by qL = 100 – 4PL). Total demand is equal to the combined demand from both locations. Suppose Universal widget can control the quantities supplied to each market.

(a) How many should it sell in each location to maximize its profit?

(b) What price will be charge in each location?

Which of the following statements about global economic growth is NOT true?

Group of answer choices

In 2010 it was noted that, globally, banks faced a "wall" of maturing debt.

The economic struggles of large economies impact the global economy more than those of small economies.

The credit crisis started in 2008 and increased in 2009.

From 1980 to 2012 China has had the largest economy and rate of expansion.

How is the seventh national development plan of Zambia going to be affected by the corona virus?
1000 words.

a) Write out the equation that describes the Quantity Theory of Money. Must indicate clearly what each variable in the equation means in order to earn full marks .
Based on the equation, predict what would happen to inflation in the long run:

b). if the growth rate of the velocity of money is zero and money supply grows at a faster rate than real GDP growth rate. You may use some hypothetical numbers to illustrate your answer (1.5 marks)
c). if the growth rate of the velocity of money is zero and money supply grows at a slower rate than real GDP growth rate. Use some hypothetical numbers to show (1.5 marks)
d). Based on these two scenarios (b and c) and the quantity theory of money as stated in this question, what would be a good monetary policy for the economy in the long run?

a) Write out the equation that describes the Quantity Theory of Money. Must indicate clearly what each variable in the equation means in order to earn full marks .
Based on the equation, predict what would happen to inflation in the long run:

b). if the growth rate of the velocity of money is zero and money supply grows at a faster rate than real GDP growth rate. You may use some hypothetical numbers to illustrate your answer (1.5 marks)
c). if the growth rate of the velocity of money is zero and money supply grows at a slower rate than real GDP growth rate. Use some hypothetical numbers to show (1.5 marks)
d). Based on these two scenarios (b and c) and the quantity theory of money as stated in this question, what would be a good monetary policy for the economy in the long run?

ROUND ALL CALCULATIONS TO TWO (2) DECIMAL PLACES a. (15 pts) Please draw the Keynesian Cross assuming the following information. Be sure to specify at what point consumption and disposable income are equal. Marginal Propensity to Consume = .88 Autonomous Consumption = $525 b. (5 pts) Assume that your disposable income is $760. How much are you consuming? Are you saving or dissaving? c. (10 pts) Assume that autonomous consumption increases to $890. Please illustrate this change on graph from part a. Again, you must specify at what point consumption and disposable income are equal. d. (5 pts) Based on the change in part c, illustrate what will happen to aggregate demand.

1) Suppose that a firm’s production function is q=10L^0.25 K^0.75. The cost of a unit of labor is $30 and the cost of a unit of capital is $90. a. The firm is currently producing 120 units of output. Derive the cost-minimizing quantities of labor and capital (i.e. in the long run). What is the total cost?

b. The firm now wants to increase output to 160 units. If capital is fixed at the level you found in part a) (i.e. in the short run), how much labor will the firm require? What is the firm’s new total cost?

3. What is the cost-minimizing level of capital and labor in the long run if the firm wants to produce 160 units of output? What is the total cost now?

Give more details on the following answer

Question:

Give a detailed explanation about what is happening with the oil prices.

mention coronavirus, OPEC, Saudi Arabia.

give references

Answer:

Oil prices is dropping.Major causes behind the fall is given below:

• Increase in Supply.
• Decrease in demand and
• fall of monopoly power in oil producers.

The price of oil sunk to levels not seen since 2002 as demand for crude collapses amid the coronavirus pandemic.Oil prices have fallen by more than half during the past month as companies cut back or close production.Oil prices failed to keep pace,with growing (coronavirus)lock down measures and that could drive global demand down 20%,potentially pushing the world to run out of storage capacity.

Organization of petroleum exporting countries (OPEC) controls almost 80%of the world's oil reserves.OPEC is the main influencer in fluctuations in oil prices.OPEC and its allies due to covid 19 outbreak,agreed to historic production cuts to stabilize prices,but they dropped to 20 years lows.Supply and demand influences oil prices to change.From global perspective,political instability in middle east causes oil prices to change.

Saudi Arabia is the second largest oil producer in the world.It will suffer financially from cheap oil.It can afford temporary falls in oil prices because they have substantial reserves.If low prices persist,Saudi Arabia may have to cut back on some of the social programms.

References:

BBC News(30 March 2020) Coronavirus:oil price collapses to lowest level for 18 years

Why did policy makers reverse this stance and start welcoming FDI in the 80s and 90s? Provide an example of FDI in India by a foreign from that validates this policy reversal.

Describe how a company can avoid arbitrage if it wants to pursue price discrimination of the following products:

a. Beer for export; b. Vacuum cleaners – products at a discount are supposed to be offered to some buyers; c. Bus drives; d. Plastic that is an intermediate product with several applications.

The money supply is fixed at $60billion and the equilibrium value of money 1/P = 1/2. The Federal Reserve increases the money supply by $20 billion and as a result the new equilibrium price level is 5. Use the Money Supply-Demand Model (Diagram) to explain clearly how equilibrium is restored in the model.

2. A firm is operated under monopoly where there are two groups of customers. The market demand from group 1 is given by Q1 = 80 – P. The market demand from group 2 is given by Q2 = 40 – P/2. The firm’s marginal cost function is given by MC =20.

a. Total market demand is given by Q= Q1 + Q2 = 120 – 3P/2. Find the firm’s producer surplus from combining the two markets and set a single optimal price.

b. Find the firm’s total producer surplus from separating the two markets (third degree price discrimination.

c. Use price elasticity of each demand function to explain why the third-degree price discrimination in b. cannot increase the firm’s producer surplus

A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $500  each month for the three-month season. The team pays the players and manager a total of $2500 each month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 100 people at each home game.

Part 1. The team earns an average of $________________ in revenue for each game and $______________ of revenue each season.

With total costs of $_____________ each season, the team finishes the season with $________________ of profit.

Part 2   In order to break even, the team needs to sell   tickets for each game. Round to the nearest whole number.