Currently U.S. is producing 150 cloth and 50 machines. Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. Instruction: E, The following table shows prices an quantities for two goods over three different time periods. All other trademarks and copyrights are the property of their respective owners. \hspace{7pt}\text{Event/} \hspace{20pt} \text{Cash} \hspace{5pt}+ \hspace{10pt} \text{Other} \hspace{5pt} = \hspace{10pt} \text{Liabilities} \hspace{5pt} + \hspace{10pt}\text{Common} \hspace{5pt} + \hspace{5pt} \hspace{5pt} \text{Retained}\\ E. If a company follows a policy of matching maturities, this means that it matches its use of short-term debt with its use of long-term debt. Explain the following terminologies in economics Spreading the overhead. (Assume that the change in fair value results from a change in market interest rates rather than a change in instrument-specific credit risk.). 2. Suppose that Home has 100 workers, a marginal product of 4 making apples, and a marginal product of labor of 4 making shirts. "If real GDP stayed the same while nominal GDP declined between 2008 and 2009, then the GDP deflator must also have declined.". (a). c. Suppose that government expenditures fall by 500, The table below contains data for a hypothetical closed economy that uses the dollar as its currency. remain the same For example, in 2011, the money supply was $240, the price of a cell phone was $7.20, and the economy produced 500 cell phones. Then, average total cost (ATC) is A) 25 cents per unit and average fixed cost (AFC) is 15 cents per unit. The money wage rate falls, real GDP increases, and the price level rises. c. Assuming that this economy produces only the thr. Velocity and the quantity equation Consider a simple economy that produces only cell phones. Using Aggregate Demand and Aggregate Supply, explain the effect of a decrease in Lump Sum Taxes on the price level and GDP in the short run (i.e., until the end of the first period) on the level of ou, Consider an economy described by the production function: Y = F(K,L) = K^{(0.32)}L^{(0.68)}. The following table contains information on the economy's money supply, velocity of money, price level, and output. What is the level of productivity? b, Indicate on a graph of the circular flows in the market economy, the real and money flows in which the following items belong: a. In 2016, the economy produced 85 f, Consider a firm with the production function, q=(K^1/2+L^1/2)^2. Video Games 900 $30.00 Gross National Product (GNP) differs from U.S. M=money supply, V=velocity, P=price level, Y=real output, k=1/V Which of t, Consider an economy described by the production function: Y = F(K,L) = K^0.4 L^0.6 a. In the short run, the firm has signed a lease to r, Maya papaya runs a profit maximizing firm in which she uses capital (k) and labor (l) to make her pies. Year Quantity of money Velocity of money Price level Quantity of output Nominal GDP (Dollars) (Dollars) (Cell phones (Dollars) 2017 240 15 7.20 500 3,600 , Consider a simple economy that produces only cell phones. Aggregate supply describes a relationship between? Transfer Payments 600 Fill in the missing values in the following . The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2016, the money supply was $360, the price of a cell phone was $9.00, and the economy produced 800 cell phones. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. a) Determine the equations for MPL and APL. Since cell phone output did not change from 20 money the change in the money supply was reflected in changes in the pr 2017 to 2018 was
Since cell phone output did not change from 2017 to 2018 and the velocity of money the change in the money supply was reflected In changes in the price level. Few foreign citizens currently work in the U.S. and few foreign firms maintain facilities in the U.S. They have a total of 850 crates of oranges. Corn Bread 110 $1.00 . Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{3,780}{500} The following table shows the relationship between output and number of workers in the short run. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing. Draw graphs to support your answer. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GDP and real GDP? B. all things are produced by the people of the lowest wage rate. Show the effect this will have on national income, unemployment, inflation, and interest rates with the help of an ADAS diagram, assumi, An economy has a recessionary gap. Calculate the velocity of money. (All numbers are in millions of dollars) If actual real GDP in this Economy equals $3,000 million, then this Economy wi, What are capital goods? a. not change GDP or the category under which the spending is counted. Consider a simple economy that produces only croquettes. {/eq}. The marginal propensity to consume for this economy is: a. Incorrect: The largest component of gross domestic income is wages, which are about three times as large as profit. These are your only costs. With no changein aggregate demand, how does the economy return to full employment? how the actual output will deviate from potential output. According to the Fisher effect, as expectations adjust to the new, higher inflation rate, the nominal interest rate will ______ to (a) Graph the short-run total product curve. Derive the base-year-quantity price index. In 2015, the economy produces 1,000 tonnes of apples, 2,000 tonnes of oranges, and 3,000 tonnes of bananas. The labor supply, Think about the short-run production of a small firm that makes sweaters. Question: Consider a simple economy that produces only pens. b. multiproduct firms will enjoy a cost advantage because they have the opportunity to divide their pool of worker, Consider three firms: firm A, a mining enterprise; firm B, a steelmaker; firm C, a car-maker. Gopher Excavators produces shovels in a small factory and sells the shovels in a perfectly competitive market. C. attempts to increase the output of the economy wil, If an economy is being "productively efficient," then that means the economy is A. producing the products most wanted by society. Using the line drConsider a decrease in the supply of money th, An economy with zero net exports is described below: C= 80 + 0.75 (Y - T) I^p= 100 G= 150 NX= 0 T= 180 The multiplier in this economy is 4. a. The following table contains information on the economy's money supply, velocity of money, price level, and output. Gross Domestic Product (GDP) in which of the following ways? Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2015. What is t, Both Kate and John own saltwater taffy factories. Show calculations. \\ National income will John's factory has high fixed costs and low variable costs. Suppose GDP in this country is $1,175 million. Production and Prices in Year 2 Velocity and the quantity equation Consider a simple economy that produces only pies. \hspace{23pt}\text{a} \hspace{27pt} \text{-6,000} \hspace{22pt} \text{+6,000} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{52pt} \text{NA}\\ Consider a simple economy that produces two goods: pencils and muffins. Find the Marginal Product of Labor (MP_L). Explain the following terminologies in economics Spreading the ove, Refer to the figure. Consider a simple economy that produces only cell phones. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The value of the multiplier for this economy is 4. Explain your graph. Consider a simple economy that produces only pies. There are three productive factors. b) the size of its factories. \\ Table: Inflation Rate (%); Real Interest Rate (%); Nominal Interest Rate (%); After-Tax Nominal Interest Rate (%); After-Tax Real Interest Rate (%) A. Draw a graph of aggregate demand and aggregate supply to illustrate the current situation. Fill in the missing values in the following table, selecting the answers closest to the values you calculate. B. an economy will automatically seek the level of output a, Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. The price of a unit of beef = $19 and the price of a unit of soy = $14. 1. This firm operates in the short run where capital (K) is fixed at a quantity of 16. 4. The following table contains information on the economy's money supply, velocity of money, price level, and output. b. determine how large the budget deficit should be. NI = NNP - Indirect Business taxes =11900 - 40 = 11860 Right now, the firm has 10 units of K, w = 3, and r = 10. prices have decreased 2 percent between the base year and 2012. If the equilibrium quantity of airplanes demanded is 400, can this economy take full advantage, The table below shows how the average cost of production for airplanes at a certain factory changes as the number of airplanes built at that factory increases. GDP only counts final goods and services and not intermediate goods. The total costs C of a firm is: C = 4K + L. a. What is the optimal labor demand in the short run? \hspace{28pt} \text{NA} \hspace{29pt} \text{-4,500} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{45pt} \text{-4,500}\\ Consider an economy that begins with an output equal to its natural level. B. the economy is near full capacity. What he can't spend, he converts into a more stable foreign currency for a steep fee. Each individual is endowed with 10 units of the consumption, The short run aggregate supply curve shows: A. what happens to output in an economy as the actual price level changes, holding all other determinants of real GDP constant. The market price of a product is above the average cost of production. The following table contains information on the economy's money supply, velocity of money, price level, and output. If you were attempting to forecast the level of consumer spending by households, which measure of total production or total income might be most helpful in making your forecast? You buy an iPad from the Apple Store. What is the marginal pro. Specifically, Related to Solved Problem Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. b. For example, in. For example, in 2011, the money supply was $240, the price of a cell phone was $7.20, and the economy produced 500 cell phones. B. If the wage rate is $5 and the price of capital is $2, then in order to minimize costs the firm should use: A. more capital and less labor. The following table shows the prices and quantities of the goods over a three-year period. The following table contains information on the economy's money supply, velocity of money, price level, and output. | Year |Pens |Pens|Oranges |Oranges |. Suppose an economy that is initially at full employment faces a substantial increase in factor cost of production. The economy is in long-run macroeconomic equilibrium. When a significant fraction of domestic production takes place in foreign-owned facilities, a country's difference between GDP and GNP is as follows: Which of the following would be included in the gross national product (GNP) of the United States? -When income is $11,000, consumption spending is $7,300. 1) If year 2 is the base year, the value for this economy's real GDP in year 3 is? Provide the name and shape. According to the CAGE framework, which of the following is an example of a product most affected by economic distance? For example, in 2018, the money supply was $200, the price of a cell phone was $7.50, and the economy produced 400 cell phones. Consider a simple economy that produces only pies. The following table contains information on the economy's money supply, velocity of money, price level, and output. |Q| 0 |20 |60| 110 |170| 240| 290| 330| 355| 370| 380 |L |0| 1| 2| 3 |4 |5 |6| 7 |8 |9 |10 Suppose short run fixed costs are $200 and the wage, Suppose that a firm's production function is given by q = 20E^{0.50}. Suppose half the capital stock is suddenly destroyed(leaving the labor force unchanged). Assume it is currently in its initial steady state. The unanticipated change in inflation arbitrarily benefits _______. Suppose in the short run a firm's production function is given by Q = L1/2K1/2, and K is fixed at K = 36. \end{array} Understand how to use the inflation rate formula through examples. For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell phones. B. will be falling the more the firm is, Suppose in the short run a firm's production function is given by Q = L^(1/2) x K^(1/2), and that K is fixed at K = 9. Find the equilibrium real interest rate. For example, in 2014, the money supply was $240, the price of a pen was $7.20, and the economy produced 500 pens. The marginal product of labor is \frac{10}{E^{0.50. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens.
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