Answer the following questions using TRUE, FALSE or UNCERTAIN. Make sure you provide a brief explanation...

Answer the following questions using TRUE, FALSE or UNCERTAIN. Make sure you provide a brief explanation for each of your answers. Your score will largely reflect the quality and relevance of your explanation.
(i) In the IS-LM model, equilibrium output is determined in the goods market, while equilibrium interest rate is determined in the bond market.
(ii) A $100 million increase in defense spending will have the same impact on equilibrium output as does a $100 million tax cut.

Solutions

Expert Solution

The first page is for qs no 1 and the rest are for 2 no. qs

step by step is done.

Rahul Sunny answered 11 months ago

Next > < Previous

Related Solutions

Part I. True/False/Uncertain/Explanation. Make sure you provide an explanation why you think the statement is True...

Part I. True/False/Uncertain/Explanation. Make sure you provide an explanation why you think the statement is True or False or Uncertain. You get ZERO mark if you do not provide any explanation. Perfect competition may lead to an equilibrium where P=MC (Price=Marginal Cost) and total surplus is maximized. Provinces use Canada Health Transfer and Canada Social Transfer to provide public health and education. If you were to drop out of college after attending for 3 years and completing 75% of all...

Part I. True/False/Uncertain/Explanation. Make sure you provide an explanation why you think the statement is True...

True/False/Uncertain (30 marks) Answer each of the following statements True/False/Uncertain. Give a full explanation of your...

True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.) A) Average variable cost is equal to average total cost in the long-run. B) Firms in a perfectly competitive market can earn positive profits in the short and long-run. C) A monopolist conducting perfect price discrimination does not maximize total surplus.

1. True/False/Uncertain (30 marks) Answer each of the following statements True/False/Uncertain. Give a full explanation of...

1. True/False/Uncertain Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a fully labeled graph.) A) All Nash Equilibrium are Pareto efficient. B) If firms could collude in an oligopoly game, they would set either output or price at the monopoly level. C) In order for cheap talk to work in an infinite game, it must be a Nash Equilibrium in every static version of the...

Provide an explanation of whether the following statements are true, false, or uncertain: a. “Tom’s workplace...

Provide an explanation of whether the following statements are true, false, or uncertain: a. “Tom’s workplace provides free access to a fitness room; Jerry’s does not. Vertical equity requires that Tom be taxed on the value of having access to the fitness room.” b. “Tom’s workplace provides free access to a fitness room; Jerry’s does not. If Haig-Simons income was used as the tax base, Tom would be taxed on the value of having access to the fitness room.”

Indicate whether True, False, or Uncertain. Then provide a brief statement indicating WHY true or false,...

Indicate whether True, False, or Uncertain. Then provide a brief statement indicating WHY true or false, or if the statement is ambiguous, what would need to be altered to the statement to make it clearly true or false. a) Publicly provided insurance may crowd out the purchases of those who would pay for private insurance. b) The existence of moral hazard provides an argument for both market failure and government failure in insurance markets. c) If there were no free-riding,...

Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer. A) If...

Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer. A) If consumers have negatively correlated reservation prices, bundling is a profitmaximizing strategy. B) Vertical arrangements (integration, exclusive dealing, etc.) can be used to reinforce cartel participation. C) Market-based recoupment is necessary for predatory pricing to be successful. D) Ownership (or procurement) of intellectual property (patents, copyrights, etc.) is a direct observation of market power. E) It is always in the best interest of society to...

Question 3 - 48 marks Answer the following true, false, or uncertain with an explanation motivating...

Question 3 - 48 marks Answer the following true, false, or uncertain with an explanation motivating your answer (you may use graphs and math to support your answer). 1. Suppose that the central bank follows an inflation-targeting rule. Then monetary policy makes income more stable against demand shocks while it makes income more unstable against supply shocks. [8 marks] 2. Under capital budgeting, the federal government selling a highway to the province of Nova Scotia and using the proceeds to...

State whether the following statement is True, False, or Uncertain. Be sure to explain your answer....

State whether the following statement is True, False, or Uncertain. Be sure to explain your answer. The marginal propensity to consume from a permanent parallel upward shift in the production function is smaller than the marginal propensity to consume from a temporary parallel upward shift in the production function.

Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs...

Answer each of the following statements True/False/Uncertain. Give a full explanation of your answer including graphs where appropriate. (When in doubt, always include a full labeled graph.) A) An individual’s Marginal Rate of substitution is different at every point along his or her price consumption path. B) Quasi-Linear utility, Cobb-Douglas utility, and perfect substitutes are each able to characterize an individual having interior and corner solutions for a positive level of consumption. C) Consider the following three consumption bundles (X1,X2)=(10,10)...

Subjects