Questions
Show the impact of expansionary fiscal policy on a graph and in words in the AD-AS...

Show the impact of expansionary fiscal policy on a graph and in words in the AD-AS model.

If the government continues to increase government spending even after the natural rate of employment is reached, what happens in the AD-AS model. Eventually, what is the price level and employment level.

In: Economics

“Changes in demand have different effects on profit over different time horizons (short run versus long...

“Changes in demand have different effects on profit over different time horizons (short run versus long run)”. Explain this phenomenon using an example of a demand increase or a demand decrease.

In: Economics

a) In your own words or using an example, describe each condition and its relevance for...

a) In your own words or using an example, describe each condition and its relevance for the three conditions for profitable price discrimination (1. have market power, 2. be able to identify submarkets, and 3. be able to separate submarkets).

b) Suppose a perfectly price-discriminating firm faces demand function:

? = 22 − ?

And has cost function: ? = 25 + 4? + (1 /2) ?^2

Identify the quantity he sells, the price(s) he charges, and the profits he attains. Also, solve for this firm’s quantity, price, and profit under uniform pricing. Verify that perfect price discrimination increases profit and total surplus relative to uniform pricing.

In: Economics

What were some of the adverse economic outcomes, for BP and others, arising from the Deepwater...

What were some of the adverse economic outcomes, for BP and others, arising from the Deepwater Horizon accident and the suspension of all new domestic offshore drilling during the accident investigation? Cite specific examples  

In: Economics

When a shortage exists in the market, the price is below equilibrium. Consequently, buyers are willing...

When a shortage exists in the market, the price is below equilibrium. Consequently, buyers are willing to buy more than sellers are willing to sell at that price. If demand and supply curves do not move, more will be sold only if the price increases.

Select one:

True

False

Question text

If Betty experiences a decrease in pay, we would expect Betty’s demand for inferior goods to increase.

Select one:

True

False

A decrease in supply causes price to rise, demand to fall and quantity supplied to decrease.

Select one:

True

False

If an increase in income increases the demand for a good, then the good is described as a substitute good.

Select one:

True

False

Question text

A rightward shift of the supply curve will decrease price, which will increase quantity demanded and decrease quantity supplied. The new market equilibrium will be at a lower price and higher quantity than the initial price and quantity.

Select one:

True

False

In: Economics

Changes in the value of a nation’s currency affect the nation’s net exports, and thus GDP....

Changes in the value of a nation’s currency affect the nation’s net exports, and thus GDP. How might this make a large country, like the US, more willingly to adopt a flexible exchange rate regime than a small country, like Belgium.

In: Economics

Suppose a US investor has $11900 to invest and can choose either a US investment paying...

Suppose a US investor has $11900 to invest and can choose either a US investment paying 2.25% or a foreign investment paying 12%, where e is currently 32. What future e would leave the investor indifferent between investing at home or abroad?

In: Economics

consider a country UKRAINE and answer following questions in 400-500 words 1.With whom does the nation...

consider a country UKRAINE and answer following questions in 400-500 words

1.With whom does the nation trade?

2.Is it dependent on any particular nation for trade, or does another nation depend on it? Explain any factors that support your response.

In: Economics

The annual demand for natural gas in Zuma is given by the formula Q=60-2P Where P...

The annual demand for natural gas in Zuma is given by the formula

Q=60-2P

Where P is the price and Q is the quantity demanded. Marginal cost is constant at $20 per unit and there is no overhead.

a. If a monopolist controls natural gas production, what will be the monopolist’s annual profits?

b. Suppose the government of Zuma nationalized the gas company. What would it produce and what price would it charge in the interest of efficiency, assuming all other industries in Zuma are perfectly competitive?

c. Disregarding questions of the distribution, in which situation is Zuma better off-monopoly or government control? Calculate the approximate magnitude of the difference in welfare level between the two situations.

d. Suppose that in fact there are additional overhead costs of $75 per year. What would the monopolist do in this situation? Would you advise the government to take over the industry now? Explain your answer.

In: Economics

Recently 2 members of the Wisconsin state legislature wrote about the need for a constitutional amendment...


Recently 2 members of the Wisconsin state legislature wrote about the need for a constitutional amendment to balance the U.S. federal budget. They argued,

“A few days ago, the federal deficit hit $1 trillion. That’s right, the United States spent $1,000,000,000,000 more than we could afford in this fiscal year alone. Wisconsin families know that is not sustainable. We don’t rack up credit cards to the max, add tens of thousands in car loans, a hefty mortgage we can’t afford, and then expect our grandchildren to pay it all back.

Embedded in these 4 sentences are three (3) arguments used to support a balanced budget amendment. Identify the 3 arguments made in the sentences above.

In: Economics

Compare and contrast global, multidomestic and transnational strategies for any three specific firms of your choice....

  1. Compare and contrast global, multidomestic and transnational strategies for any three specific firms of your choice. Make sure you explain clearly the differences andstructural reasons for the different strategies by the three firms youchoose.

In: Economics

question If Susan Kalanti deposits $35,000 into her saving account at her Bank of America branch...

question

If Susan Kalanti deposits $35,000 into her saving account at her Bank of America branch in Houston, TX, and you know that Bank of America can only loan 84% of that amount, then, because of this transaction, the money supply is US economy

Question 7 options:

increases by $21,8750

increases by $29,400

increases by $2,940,000

decreases by $29,400

Question 8

An economy experiences an economic "expansion" as long as

Question 8 options:

real GDP is continually increasing and there are no output gaps.

real GDP is continually increasing, even if there exist a recessionary gap.

real GDP is continually increasing, but there is no recessionary gap.

None of the above.

Question 9

Which of the following observations indicates the existence of a recession?

Question 9 options:

A sharp rise in real GDP.

Unemployment rate is lower than the natural rate of unemployment.

All of the above.

None of the above.

Question 10

For a given country, the real GDP equals 100 billion dollars in year 1 and 105 billion dollars in year 2. If you know that the country's population declined from 10 million people in year 1 to 9 million people in year 2, then

Question 10 options:

We know that the unemployment rate went down.

We know that the inflation rate went up.

We know that the economic growth has a positive value

There are no enough data to indicate any value or change in value for any of the above variables.

In: Economics

Consider an open economy with a floating exchange rate at equilibrium according in the Mundell-Fleming model...

Consider an open economy with a floating exchange rate at equilibrium according in the Mundell-Fleming model at (rf, Y1). Suppose a new financial market innovation increases money demand.

Provide a narrative of the economic events experienced in its transition from the starting point before the shock to the final equilibrium after the shock. Make sure the narrative is consistent with the graph. Be sure to describe economic events, not a description of your graph.

(But please show me a graph, it is easy for me to understand)

In: Economics

Graph the substitution and income effects following a price decrease for an ordinary Inferior good. Also...

Graph the substitution and income effects following a price decrease for an ordinary Inferior good. Also derive the Marshalian and Compensated demand curves.

In: Economics

Assume that a study was done on students who were completing their last semester of college...

Assume that a study was done on students who were completing their last semester of college and had already secured offers of employment. That study showed that the students' utility could be modeled as u(HW, PAY, EXAMS) = 500PAY - 5HW - 3EXAMS, where PAY is weekly starting pay after graduation, in thousands of dollars; HW is hours of homework per week from all classes for the semester; and EXAMS is the number of exams per semester. Based on the observed utility function, how much weekly pay would students be willing to give up to reduce homework by 6.00 hours per week? Round your answer to two decimal places.

In: Economics