• Define, identify, and apply macroeconomic indicators.

In the aftermath of hurricane Sandy, parts of New Jersey have been isolated so that the transportation of gasoline to consumers has become very difficult. Local authorities in various locations have tried various ways to address the situation.

a)​Using a supply and demand model, analyze the effect of the hurricane on the market for gasoline.

b)​In some places, local authorities have decided to distribute a certain amount of gasoline for free, so that every consumer had the right to a fixed allowance. Show and discuss the effects of this decision on the market.

c)​In other places, local authorities have imposed a price cap on gas. Show this in a supply and demand diagram and explain the consequences.

Machine X has a first cost of $70,000 and an operating cost of $21,000 in year 1, increasing by $500 per
year through year 5 with a salvage value of $13,000. Machine Y has a first cost of $62,000 and an operating cost of
$21,000 in year 1, increasing by 3% per year through year 10 with a salvage value of $2000. If the interest rate is
i 13% per year, evaluate which machine must you choose on the basis of:
(a) the present worth analysis,
(b) the conventional B/C analysis

With explanation of Pa , Pc, Ps PW for plan X

Pa ,Ps PW, for plan Y

Delta (C+O) , delta B , Delta B/C

What does the slope of the yield curve tell us? Suppose that economy is in recession and monetary authority decreases policy rate (interest rate) to return output to its potential level. Illustrate using relevant graphs when the yield curve is i) approximately horizontal ii) downward sloping (Hint: Use expectations augmented IS-LM model).

Define Marshall-Lerner condition and J-curve. Explain the relation between the two concepts (25 pts.)

1. Decompose the liquidity preference demand for money function: M^d = D_t(PY) + D_a(R).

That is, what are the different reasons we wish to hold money and what are these reasons/demands determined by (or a "function of")?

And, in our model of the economy, “where” & how is the equilibrium interest rate determined?

2. Briefly explain with—or without—a bit of maths, why bond prices & interest rates are inversely related.

1. Why was the change in dynasties in Spain, from Hapsburg to Bourbon, so important?

in what ways will future technological development increase inequality? in what ways will technological development reduce inequality?

Classical economists favor a monetary rule because they believe the short run effects of monetary policy are unpredictable and the long run effects are on real output.

Group of answer choices

True

False

Suppose that the cost function of some manufacturer is TC(q) = 160 + 8q + 10q^2 .

1. Find expressions for the firm’s ATC, AVC, AFC, and MC curves.

2. Sketch the ATC, AVC, and MC curves. At what output level does the firm’s ATC

   reach its minimum point?

3. What can you say about the marginal product curve (for the variable factor; e.g.,MPL) that must underlie this cost function? Briefly explain.

Can monopoly bring desirable solutions in societies having an
inequitable distribution of income? Explain.

Question 39

In terms of forming expectations about the future, which school of Macroeconomic thought would most strongly agree with the following: "we base our decisions about the future on all available information and all information is available"?

the "Say What?" School

the Keynesians

the Monetarists

Rational Expectationists

Question 40

“Money is all that matters" could be thought of as the motto of

the Keynesians

the Monetarists

the Very Silly Theorists

Rational Expectationists

the Trump family

Question 41

The Classical AS curve suggests that (hint: Say's Law):

real output is directly related to the price level

idle capital & unemployed workers are available in the economy

the price level is constant

changes in aggregate demand will have no impact on the level of full-employment real GDP

Question 42

Rational Expectationists say that a fully anticipated increase in aggregate demand, perhaps as a result of easy (expansionary) monetary policy

misallocates resources

instantaneously moves the economy up the AS curve

shifts the AS curve to the left

shifts the AS curve to the right

increases real GDP & output prices

Question 43

Which school of macroeconomic thought believes that due to "crowding out", expansionary fiscal policy can potentially end up being contractionary?

Rational Expectations Theory

Monetarism

none of these

Keynesianism

Question 44

The concept that claims the fiscal policy will typically have no effect on real GDP because households will increase their saving to pay for an impending increase in taxes to finance that policy is known as

the paradox of thrift

Ricky Ricardo

Ricardian Equivalence

crowding out

adaptive expectations

Question 45

“Sticky” prices and wages are most closely associated with which group of economists?

Group of answer choices

Monetarists

none of these

Classicals

Keynesians

Rational Expectationists

Describe and explain the economist’s definition of ‘demand’. 2. Describe and explain the economist’s definition of ‘supply’. 3. Explain the relationship between price and quantity for demand of goods and services and the supply of goods and services. 4. Explain the concept of ‘equilibrium’. Add references

Write an essay on how to extract and create an IS-LM  (Keynesian model). Please use your OWN WORDS and graphs!!

1. Domino brand sugar and C&H brand sugar are perfect substitutes in production for Paradise Bakery and the slope of its isoquants is 1 (in absolute value). In January of 2014 Paradise Bakery used 200 bags of Domino sugar and 20 bags of C&H sugar. (The bags of sugar from both companies are the same size and Paradise Bakery behaves optimally.)

Domino sugar costs less to use than C&H sugar

Domino sugar costs more to use than C&H sugar

Domino sugar and C&H sugar cost the same

Paradise enjoys a lower marginal product from C&H sugar than Domino sugar

None of these.

2.Which of the following statements about the short-run production function is true?

MP always equals AP at the maximum point of MP.

MP always equals zero when TP is at its maximum point.

TP starts to decline at the point of diminishing returns.

When MP diminishes, AP is at its minimum point.

None of these options are true.

3.If a firm moves from one point on a production isoquant to another point on the same isoquant, which of the following will certainly not happen?

A change in the level of output

A change in the marginal products of the inputs

A change in the rate of technical substitution

A change in profitability

All of these.

4.Which of the following holds true?

When the Marginal Product (MP) is rising, Marginal cost (MC) is rising; and when MP is falling, MC is falling.

When MP is rising, MC is constant, and when MP is falling, MC is negative.

There is no relationship between MP and MC.

When MP is rising, MC is falling, and when MP is falling, MC is rising.