While Nominal and Real GDP levels are always different,their growth rates are always the same. is it true or false

Q: Evaluate the perfect competition market structure as a benchmark against which the functioning of…

A: Market structure in economics describes the level of competition and market power among firms in a…

Q: Stealth bank holds deposits of $593million. It holds reserves of $30 million and government bonds…

A: A bank's liability is a commitment or obligation that the bank owes to its customers or different…

Q: 50. Add a curve to the graph below that shows how an Exclusive Union will impact a Perfectly…

A: Since you have asked for “no- 3”, and there happens to be no such number in the questions in the…

Q: A The market is monopolistically competitive and at its long run equilibrium B The market is a…

A: When marginal revenue lies below the demand curve, it implies that the seller has to lower the price…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

A: Perfect competition: A firm in the competitive market is a price taker because it has large number…

Q: You are an investor and planning to enter the automobile industry as a supplier. The potential…

A: A table depicting the various costs associated with producing a certain quantity of goods or…

Q: a. If you decide to offer the product for sale to all buyers at a single price, what price will you…

A: Individual demand is when a buyer has both the desire and the means to purchase a good at a specific…

Q: The inverse demand curve facing a resort hotel is during the low season and PL = 100-QL PH = 350 -…

A: Peak price loading is a pricing strategy adopted by a monopoly.  In this strategy, the monopoly…

Q: Find US net export (current account balance) and its relation with US savings and investment. Draw a…

A: The current account balance measures the difference between a country's exports and imports of goods…

Q: Consider a firm with production function: q = 2LK + K, where L is the amount of labor used and K is…

A: The production function: q=2LK+K L denotes units of labor and K denotes units of capital. The wage…

Q: King Hardware sold 7 pounds of bolts yesterday at a price of $5.00 per pound. This point is…

A: Total revenue is the receipt from selling the product.  It is calculated by multiplying the price by…

Q: Consider a basic Solow-Swan model. Suppose the aggregate production function is Y - AKL and that…

A: A production function is a mathematical representation of the relationship between inputs and…

Q: hat when the price per ream of recycled printer paper rises from $4 to $4.50, the quantity falls…

A: The elasticity of Demand= In simple words we can define elasticity of demand as how much demand of a…

Q: Low Spending Café B High Spending Low Spending $220 $200 Café A $200 $170 $90 $180 High Spending…

A: Dominant strategy is the strategy which the player always choose irrespective of the strategy chosen…

Q: Use the table to determine the discounted payback period using 7% per year Period (n)    Cash flow…

A: The discounted payback period is the method to find the time it takes for an investment to generate…

Q: On a diagram, demonstrate the effects of (a) a fall in investment and (b) a fall in the money…

A: Public expenditure refers to that component  of  aggregate demand which is influenced by the…

Q: How much would you have to deposit now, so that you can withdraw of $10000 starting at the end of…

A: Given that: Interest rate = 6%, compounded semi-annually Withdrawal starting at the end of year of…

Q: A $3.5 million road widening project over a 10-mile stretch is proposed. The project will induce a…

A: In a typical capital budgeting project, there are drivers of benefits as well costs. We have to find…

Q: WAGE (Dollars per hour) 20 18 16 14 12 10 8 2 0 Supply Demand + 0 50 100 150 200 250 300 350 400 450…

A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…

Q: Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the…

A: The price index measures the change in price paid by consumers for a particular basket of goods.…

Q: Consider the following economy with: Y = 220 N-2N^2, MPN = 220-4N, NS = 8.75 w+0.2T, where T-50 is…

A: Y=220N-2N^2 MPN=220-4N NS=8.75 W+0.2T T=50 C=0.4Y-1000r-0.4T I=3613.125-500r M=P*(0.4Y-2000i) M=9275…

Q: Ball Ball 7,5 O True Alice and Xitong are deciding whether to attend a ball or go out for a meal.…

A: Given:   Xitong Ball Meal Alice Ball 7,5 4,3 Meal 4,4 9,6 The pure strategy Nash…

Q: 2. iii) Labor demand is a result of and marginal utility, marginal cost O the marginal physical…

A: The demand for labor refers to an economics principle that derives its demand for an output of firm.…

Q: Exercise A.1 . Compare the quantity and price of an oligopoly with those of a monopoly and those…

A: Monopoly refers to a market in which there is only one single seller sells a product that has no…

Q: Consider again the economy with a total money supply of $2 million and nominal GDP of $6 million.…

A: Quantity theory of money shows the relationship between the money supply, velocity, price level and…

Q: What is the length of time for which costs and outcomes related to an intervention are measured?…

A: In economics, "costs" refer to the value of resources that are used or sacrificed in order to…

Q: Refer to the equation below and answer the following questions. S=-400 +0.4Y I=400 (in millions) (a)…

A: Given Saving function S= -400+0.4Y Investment  I=400 Values of S and I are in million. We know that…

Q: Consider again the economy with a total money supply of $2 million and nominal GDP of $6 million.…

A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…

Q: In the short run, a firm which has production function f(L, M) = 4L1/2M1/2 must use 4 machines. If…

A: Short run total cost  is the total cost borne by a firm for some variable inputs and some fixed…

Q: 2. Deviating from the collusive outcome Mays and McCovey are beer-brewing companies that operate in…

A: Cartels are formed with the aim of maximizing profits by reducing competition between members and…

Q: Suppose the economy's entire money supply equals checkable deposits in the amount of $1,600,000 held…

A: The banking industry plays a crucial role to the modern economy. Banks receive consumer money and…

Q: If the price level increases by 70% in one year, then for the nominal rate of interest to be 10%,…

A: The interest set at the beginning of any time period based on the inflation anticipated reflects the…

Q: You own Earthworm Excavators.  Your company is the sole manufacturer of super-sized excavators that…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: As people in the economy build this now-lower inflation into their expectations, the economy will…

A: A general rise in the cost of products and services over time is referred to as inflation. It…

Q: a. Suppose that the carbon sequestration that results from planting a tree is worth $4. Graph the…

A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…

Q: A city is planning to renovate their current facility with hi-tech computerized systems. Four plans…

A: The B/C ratio analysis is a tool used to assess the feasibility of a project by calculating the…

Q: With the aid of diagrams, explain why employer discrimination reduces firms’ producer surplus.…

A: Employer discrimination refers to discrimination in the employment on basis of race, gender, age,…

Q: Consider the following entry game between an incumbent (I, blue payoff) and an entrant (E, green…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: Which of the following graphs represents a peak in the economy?

A: The actual level of real GDP occurs at the intersection of the AD and SRAS curves.  Long run…

Q: Describe the ppf curve and explain bow it illustrates the principle of opportunity close, what are…

A: The Production Possibility Frontier (PPF) is a graphical representation of the maximum amount of two…

Q: Disney and Paramount are both releasing an animated movie at the same time. Each company is fairly…

A: А  strаtegy is sаid tо be а  dоminаnt strаtegy fоr а  рlаyer if the рlаyer аlwаys сhооses thаt…

Q: Firm Alpha operates in a perfectly competitive market in a constant-cost industry and is earning…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: This graph represents the tobacco industry. The socially optimal price and quantity are PRICE…

A: Social efficiency will be attained at an output where Marginal Social Cost (MSC) and Marginal Social…

Q: Discuss the advantages and disadvantages of investing in emerging economies

A: Investing in emerging economies refers to investing in countries that are in the process of…

Q: Figure 18-11 The Market for Capital Refer to Figure 18-11. What is measured on the vertical axis of…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: If we have an aggregate production function of the form Y = AK, at what capital-labor ratio can a…

A: An aggregate production function represents the relationship between the total output of an economy…

Q: A new road is being proposed to create a shortcut from a major residential area to an industrial…

A: Net present worth (NPW) is a financial analysis technique that calculates the present value of the…

Q: Salima is a devoted coca cola consumer, whereas Antonia can drink either coca cola or Pepsi…

A: In economics, elasticity means the responsiveness of a variable to a change in another variable.…

Q: 6. Consider a duopoly in which inverse demand is given by P= 100-Q, where Pis the price and Q is…

A: Oligopoly is a market structure in which a small number of large firms dominate the market, and…

Q: A fund is to be donated by wealthy man to provide scholarships to deserving students. The fund will…

A: Payments to be made : 6083  semiannually for 5 years  9292 quarterly for 5 years  11421  each month…