Consider two economies. In economy A: autonomous consumption equals 700, the marginal propensity to consume equals 0.80, taxes are fixed at 50, investment is 100, government spending is 100, and net exports are 40.

In economy B: autonomous consumption equals 1000, the marginal propensity to consume equals 0.8, taxes are proportional to income such that consumers pay 25% of their income as taxes, investment is 250, government purchases are 150, and net exports are 400.

(i) What is the planned aggregate expenditure (PAE) in each economy?

(ii) What is the short-run equilibrium output in each economy?

(iii) In which economy is the spending multiplier higher?

(iv) Suppose autonomous consumption fall by 500 in each economy. Which economy will see a higher drop in GDP? Compute the equilibrium output in each economy.

1. Trace through the short-run, intermediate, and long-run effects of an increase in consumer wealth.  (Remember there are several AD determinants.  Be able to do this question for any of them—things like consumer optimism, consumer pessimism, decreases in wealth, decrease in household indebtedness, increase in household taxes, decreases in household taxes, increased excess capacity of capital, decreased excess capacity of capital, increases in the cost of maintaining capital, decreases in the cost of maintaining capital, increases in gov’t spending, decreases in gov’t spending, increases in income abroad, decreased value of currency, ETC).  No not use policy to offset the resulting business cycle. Include a graph and extended 4-step analysis.

1)start:

2)Shock:

3)Shift:

4)Result: Short Run

Intermediate

Long Run

Two related long-term concepts are those of economic growth and the natural rate of unemployment. Frequently, policymakers target these well-known indicators.

(a) Explain how the following policy actions affect the rate of economic growth.

i.Investment tax credits encourage firms to increase spending on research and development.

ii.Marginal tax cuts combined with increased government spending cause the federal budget deficit to rise.

iii.Increased access to government grants allow greater access to higher education and vocational training. Identify how the f

b) Identify the following policy actions affect the long-run Phillips curve and the natural rate of unemployment.

i.Unemployment benefits are extended from 27 to 54 weeks.

ii.Frictional and structural unemployment decrease due to federal work programs.

Question:Consider the following statement “The Australian economy is "weak", with households weighed down by slow wages growth and higher taxes, the OECD has declared in a report that backs lower interest rates, calls for more government spending and paves the way for unconventional monetary policies.” Use the dynamic AD-AS model to describe a longer run scenario where the government is trying to pursue higher economic growth using higher government spending, but were incorrect in their estimation of the major parameters governing long run full employment equilibrium. In your analysis discuss the implications of an incorrect scenario predicted by the government when effecting their stimulus policy on equilibrium output and (un)employment. Make sure to outline the assumptions you have made to reach your conclusion.

（word limit:400-500）

Consider the following statement “The Australian economy is "weak", with households weighed down by slow wages growth and higher taxes, the OECD has declared in a report that backs lower interest rates, calls for more government spending…” Use the dynamic AD-AS model to describe a longer run scenario where the government is trying to pursue higher economic growth using higher government spending, but were incorrect in their estimation of the major parameters governing long run full employment equilibrium. In your analysis discuss the implications of an incorrect scenario predicted by the government when effecting their stimulus policy on equilibrium output and (un)employment. Make sure to outline the assumptions you have made to reach your conclusion. Limited 400-500 words

Please Draw the dynamic AD-AS model ！

It's true — sand dunes in Colorado rival sand dunes of the Great Sahara Desert! The highest dunes at Great Sand Dunes National Monument can exceed the highest dunes in the Great Sahara, extending over 700 feet in height. However, like all sand dunes, they tend to move around in the wind. This can cause a bit of trouble for temporary structures located near the "escaping" dunes. Roads, parking lots, campgrounds, small buildings, trees, and other vegetation are destroyed when a sand dune moves in and takes over. Such dunes are called "escape dunes" in the sense that they move out of the main body of sand dunes and, by the force of nature (prevailing winds), take over whatever space they choose to occupy. In most cases, dune movement does not occur quickly. An escape dune can take years to relocate itself. Just how fast does an escape dune move? Let x be a random variable representing movement (in feet per year) of such sand dunes (measured from the crest of the dune). Let us assume that x has a normal distribution with μ = 10 feet per year and σ = 3.8 feet per year. Under the influence of prevailing wind patterns, what is the probability of each of the following? (Round your answers to four decimal places.) (a) an escape dune will move a total distance of more than 90 feet in 9 years .5000 Correct: Your answer is correct. (b) an escape dune will move a total distance of less than 80 feet in 9 years .3850 Incorrect: Your answer is incorrect. (c) an escape dune will move a total distance of between 80 and 90 feet in 9 years

(1 point) The song-length of tunes in the Big Hair playlist of a certain Statistics professors mp3-player vary from song to song. This variation can be modeled by the Normal distribution, with a mean song-length of μ=4.1 minutes and a standard deviation of σ=0.72. Note that a song that has a length of 4.5 minutes is a song that lasts for 4 minutes and 30 seconds.

While listening to a song, the professor decides to shuffle the playlist, which means the mp3-player is to randomly pick a song within this particular playlist, and play this next.

If using/working with z-values, use three decimals.

(a) What is the probability that the next song to be played is between 3.8 and 4.85 minutes long? Answer to four decimals.

(b) What proportion of all the songs in this playlist are longer than 5 minutes? Use four decimals in your answer.

(c) 10% of all the songs in this playlist are at most how long, in minutes? Enter your answer to two decimals, and keep your answer consistent with how the song length has been expressed in this problem.

(d) There are 233 songs in the Big Hair playlist. How many of these would you expect to be longer than 5 minutes in length? Use two decimals in your answer.

(e) From the time he set his mp3-player to shuffle, there has been 16 songs randomly chosen and played in succession. What is the chance that the 16-th song played is the 8-th to be longer than 4.1 minutes? Enter your answer to four decimals.

*If you would like you can use RStudio Statistical Software*

Classique Household Furnishings & Appliances is a family-owned furniture store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2018. Your data collection has yielded the following

Extracts from the sales and purchases budgets are as follows:

Cash Sales

$50,000 $65.000 $43,400 $52,800 $56,750

Sales Purchases On Account On Account

$480,000 $600,000 $720,000

$640,000

$800,000

$390.000 $360,000 $450,000 $400,000

$500,000

Month

May

June

July August September

An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit forms 5/30, n90:

50% in the month of sale 35% in the first month following the sale 15% in the second month following the sale

Accounts payable are settled as follows, in accordance with the credit forms - 4/30, n60 70% in the month in which the inventory is purchased 30% in the following month

Monthly rental is received from a tenant for storage space rental to him by Classique Household Furnishings & Appliances. The rental is $840,000 per annum and is received quarterly in advance

Rental relating to the quarter under review becomes due on July 1.

Computer equipment, which is estimated to cost $350,000, will be acquired for cash in August The manager has made arrangements with the seller to make a cash deposit of 50% of the amount upon signing of the agreement in August with the balance to be settled in four equal monthly instalments, starting in September 2018.

An investment instrument purchased by the company with a face value of $480,000 will mature on July 20, 2018 and will be liquidated on that date. At the same time, quarterly interest computed at a rate of 8% % per annum will also be collected.

Fixed operating expenses, which accrue evenly throughout the year are estimated to be $1,920.000 per annum including depreciation on non-current assets of $42,000 per month and are settled monthly

i)

iv)

vi)

vii)

viil)

Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly

Other operating expenses are expected to be $144,000 per quarter and are settled monthly

In the month of August, furniture & fixtures, which cost $455,000, will be sold to an employee at a Inss of $20.000. Accumulated depreciation on the furniture & fixtures at that time is expected to be $305,000. The employee will be allowed to pay a deposit equal to 60% of the selling price in

The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 2,400 sets per quarter. Quarterly cost data at this level of operations follow:

Required:
1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.)

2. Based on the answers obtained in Requirement (1), compute the average product cost per patio set. (Round your answer to 2 decimal places.)

3. Assume that production increases to only 2,160 sets quarterly. Would you expect the average product cost per patio set to increase, decrease, or remain unchanged?

• Increase

• Decrease

• Remain unchanged

4. Refer to the original data. The president’s brother-in-law has considered making a patio set and has priced the necessary materials at a building supply store. He has asked the president if he could purchase a patio set from the Mahela Company “at cost,” and the president has agreed to let him do so.

a. Would you expect any disagreement over the price the brother-in-law should pay? What price does the president probably have in mind? (Round your answer to 2 decimal places.)

b. Since the company is operating below its full capacity, what cost term used in the chapter might be the most applicable in this situation?

• Opportunity cost

• Sunk cost

• Relevant cost

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