Questions
a. In early 2001 investment spending sharply declined in the United States. This event caused a...

a. In early 2001 investment spending sharply declined in the United States. This event caused a

multiple choice 1

  • rightward shift in aggregate demand, and more investment would have caused a rightward shift in aggregate supply.

  • rightward shift in aggregate demand, and lower investment would have caused a leftward shift in aggregate supply.

  • leftward shift in aggregate demand, and lower investment would have caused a leftward shift in aggregate supply.

  • leftward shift in aggregate demand, and less investment would have caused a rightward shift in aggregate supply.

b. In the two months following the September 11, 2001, attacks on the United States, consumption also declined. This event caused a

multiple choice 2

  • rightward shift in aggregate demand, and lower investment would have caused a leftward shift in aggregate supply.

  • leftward shift in aggregate demand, and lower investment would have caused a leftward shift in aggregate supply.

  • rightward shift in aggregate demand, and more investment would have caused a rightward shift in aggregate supply.

  • leftward shift in aggregate demand, and less investment would have caused a rightward shift in aggregate supply.

In: Economics

When the Aggregate supply curve is in the intermediate phase, if Government deficit spending increases and...

When the Aggregate supply curve is in the intermediate phase, if Government deficit spending increases and increases Aggregate Demand then:

Real GDP increases, Jobs are created and the CPI increases

Real GDP increases, the CPI increases but the unemployment rate increases

the unemployment rate falls, the CPI rises and Real GDP stays the same

the CPI increases, Real GDP falls and the unemployment rate falls

In: Economics

20. a. Demonstrate how an increase in income affects spending on a normal good using an...

20. a. Demonstrate how an increase in income affects spending on a normal good using an Income-consumption curve, a demand curve and an Engle curve. Make sure all of your graphs are well labelled and briefly explain the effect you are demonstrating on each one

b. The price of a good decreases. Explain how this would affect the demand for a good by discussing both the substitution effect and the income effect of the price change.

In: Economics

2. Consumption spending is a large percentage of GDP in the United States. The ageing population...

2. Consumption spending is a large percentage of GDP in the United States. The ageing population is a demographic certainty. Explain how ageing demographics in the U.S. will affect the economy for each of the two views discussed below.

a. Using key macroeconomic measurements and models explain how ageing demographics traditionally has already affected several economies (such as Japan and Europe.

b. Now explain how ageing demographics will affect U.S. consumers and U.S. consumers and U.S. businesses if older people are behind in saving for their retirement and must continue to work to save more for retirement.

In: Economics

Government spending in Robok is $200 billion, and its only tax is an income tax with...

Government spending in Robok is $200 billion, and its only tax is an income tax with a marginal tax rate of 0.4.

a. The balance on the government’s budget at a GDP level of $380 billion is a  (Click to select)  deficit  surplus  of $  billion.

b. The balance on the government’s budget at a GDP level of $580 billion is a  (Click to select)  deficit  surplus  of $  billion.

c. At what level of GDP will the economy of Robok have a balanced budget?


   Robok will have a balanced budget at a GDP level of $  billion.

In: Economics

A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to...

A. Sometimes in order to stimulate more consumer spending, the federal government will compel banks to relax lending standards for a time to entice more people and more business organizations to take out more loans than they would normally do under more restrictive standards.


Is the relaxing of lending standards a wise policy to implement from time-to-time, or is the risk to the overall economy too great to make use of such a policy? Explain in detail why or why not, and also keep in mind that such a relaxed standards policy played a significant role in the economic troubles the country endured primarily in 2007-2008.


B. Since business taxes increase the cost of doing business, and these lead to higher consumer prices and fewer investments, would both business organizations and consumers benefit from lower business taxes, or would only business organizations benefit? Explain.

In: Economics

Executives at The Walt Disney Company are interested in estimating the mean spending per capita for...

Executives at The Walt Disney Company are interested in estimating the mean spending per capita for people who visit Disney World in Orlando, Florida. They plan to use the Z-distribution but they know it requires that the population be normally distributed. Six hundred customers were randomly surveyed, and the amount spent during their stay at Disney World was recorded.  Before using the sample data to estimate the population mean, the managers wish to test at the .05 significance level to determine whether the population is normally distributed.

a. State the null and alternate hypotheses

b. Organize the data into 10 classes and form a frequency table (chapter 2). Calculate the expected frequencies.

c. Compute the value of the test statistic

d. Compute the p value

e. What is your decision regarding the null hypothesis? Interpret the result.

Amount Spent at Disney World
$128
$138
$106
$78
$149
$107
$152
$102
$128
$153
$153
$145
$122
$163
$123
$106
$111
$136
$136
$90
$91
$121
$114
$129
$171
$78
$149
$103
$111
$126
$154
$54
$78
$115
$75
$98
$117
$118
$102
$147
$139
$91
$113
$68
$158
$61
$100
$69
$161
$160
$87
$192
$136
$130
$88
$131
$182
$120
$52
$73
$92
$102
$114
$183
$186
$137
$126
$115
$108
$144
$142
$110
$100
$156
$95
$97
$85
$146
$120
$167
$82
$181
$72
$50
$126
$137
$182
$101
$107
$115
$158
$153
$124
$136
$92
$113
$104
$124
$87
$120
$108
$156
$122
$93
$168
$113
$105
$101
$113
$126
$144
$162
$130
$92
$143
$111
$121
$166
$134
$103
$170
$126
$143
$118
$123
$86
$119
$110
$169
$125
$95
$51
$62
$112
$156
$130
$127
$50
$104
$147
$185
$131
$114
$85
$106
$112
$86
$94
$168
$111
$81
$147
$132
$101
$119
$117
$146
$152
$139
$88
$129
$148
$145
$96
$116
$80
$169
$119
$190
$115
$84
$101
$133
$104
$141
$57
$89
$67
$97
$82
$127
$109
$140
$95
$135
$109
$90
$88
$164
$96
$86
$99
$119
$173
$100
$107
$126
$127
$143
$143
$114
$116
$78
$151
$96
$170
$165
$97
$94
$156
$133
$129
$114
$82
$97
$87
$104
$101
$145
$124
$163
$128
$141
$124
$169
$80
$110
$104
$162
$141
$113
$142
$87
$93
$177
$121
$157
$159
$58
$150
$140
$112
$115
$86
$133
$148
$178
$120
$167
$171
$158
$129
$107
$113
$136
$96
$91
$172
$107
$144
$120
$105
$138
$75
$60
$105
$160
$82
$126
$127
$56
$79
$99
$124
$175
$130
$105
$152
$98
$126
$88
$144
$101
$67
$92
$84
$166
$128
$148
$137
$138
$100
$101
$83
$121
$117
$135
$81
$118
$80
$37
$122
$145
$119
$102
$154
$170
$79
$61
$121
$110
$151
$137
$151
$99
$88
$106
$84
$97
$116
$153
$94
$123
$60
$129
$188
$118
$94
$78
$99
$134
$149
$99
$92
$97
$183
$126
$102
$128
$77
$62
$96
$120
$77
$124
$128
$117
$97
$112
$171
$111
$138
$126
$130
$95
$71
$136
$141
$99
$128
$82
$82
$160
$115
$108
$66
$58
$122
$80
$111
$128
$72
$102
$103
$136
$104
$139
$93
$71
$102
$129
$84
$82
$133
$121
$156
$118
$93
$102
$113
$104
$116
$166
$115
$156
$150
$154
$126
$135
$132
$145
$101
$174
$96
$115
$96
$173
$167
$117
$84
$112
$84
$164
$94
$159
$152
$101
$97
$130
$80
$146
$161
$83
$134
$150
$131
$148
$132
$54
$120
$159
$66
$213
$120
$61
$126
$142
$113
$76
$121
$87
$120
$120
$99
$143
$143
$100
$75
$129
$126
$100
$81
$107
$89
$175
$125
$104
$128
$107
$110
$127
$109
$47
$121
$177
$101
$128
$192
$91
$112
$154
$71
$100
$77
$130
$75
$116
$118
$125
$110
$123
$108
$109
$109
$132
$93
$78
$133
$179
$138
$114
$99
$100
$144
$103
$117
$100
$97
$72
$152
$95
$135
$73
$128
$122
$168
$119
$131
$149
$51
$90
$98
$87
$118
$114
$160
$92
$74
$129
$147
$120
$184
$120
$100
$89
$115
$84
$107
$127
$124
$157
$128
$87
$150
$92
$141
$147
$146
$93
$196
$110
$171
$92
$102
$130
$113
$101
$109
$170
$144
$131
$82
$175
$140
$110
$96
$84
$77
$122
$49
$147
$75
$94
$110
$149
$111
$143
$95
$82
$34
$98
$132
$105
$77
$138
$115
$117
$93
$86
$106
$130
$121
$86
$161
$103
$89
$102
$137
$132
$107
$132
$114
$156
$167
$114
$72
$150
$69
$100
$53

In: Statistics and Probability

(a) A city is spending $10 million on building a new sewage system. Suppose the annual...

(a) A city is spending $10 million on building a new sewage system. Suppose the annual operating expenses for the system are projected to be $6,000 for each year, starting in year one and continuing forever. And maintenance expense of $20,000 starts in year five, repeating every five years thereafter and continuing forever. If the city’s MARR is 10% per year, what is the capitalized worth of the system?

b. Alice deposits $2,000 in a savings account now which offers a variable rate of interest. She plans to withdraw all her money in 5 years. During the period, the annual interest rate paid on her deposits in this account changes each year. How much will Alice receive upon withdrawing her money after 5 years?

The interest rates which will be offered by the savings account in the next 5 years are stated as follows:

Year

Interest Rate

Year 1

8%

Year 2

10%

Year 3

9%

Year 4

10%

Year 5

10%

c. )

Consider two mutually exclusive alternatives A and B. Assume MARR = 10% per year, the alternatives are repeatable and the study period is 20 years, which alternative would you choose? Use both AW and PW methods of analysis.

Alternative A

Alternative B

Capital investment

$50,000

$20,000

Operating costs

$5,000 at end of year 1 and increasing by $500 per year thereafter

$10,000 at end of year 1 and increasing by $1,000 per year thereafter

Overhaul costs

$5,000 every 5 years

None

Life

20 years

10 years

Salvage value

$10,000

Negligible

d. John has purchased a bond that was issued by ABC Medical. The bond has a face value of $10,000 and will mature in eight years. The coupon rate of the bond is 8% per year, and interest payments are made to the bondholder every quarter. John bought the bond five years ago at the face value and he wants to sell it now for a price that will allow him to earn an annual yield of 12% compounded quarterly. How much does John need to sell the bond for to earn his desired return?

In: Accounting

Write a short essay on the composition of both Federal Revenues and Federal Spending. As part...

Write a short essay on the composition of both Federal Revenues and Federal Spending. As part of your answer make sure that you discuss the Federal government's key sources of revenue and also the key components of both mandatory and discretionary expenditures. In this context make sure that you also discuss to what extent the government is able to alter its revenues and expenditures in any given fiscal year.

In: Economics

1. Explain the impact of the weak consumer spending on output and inflation in the short-run,...

1. Explain the impact of the weak consumer spending on output and inflation in the short-run, including showing this on your AS-AD diagram.

2. Use a new diagram to help explain what happens to output and inflation in Australia in the short run when federal government introduces a fiscal stimulus package.

In: Economics