In the charter of the EU central bank all member countries are required to keep their fiscal deficits below a certain level. This is because all statements are relevant. O it is not fair to tax other countries through inflation tax to finance one country's spending. Okeeping a low fiscal deficit is a commitment to low inflation rate. all governments have incentive to pay their bills by printing more money.
Q: Suppose there exist two imaginary countries, Everglades and Denali. Their labor forces are each…
A: The price of ignoring the next best alternative is referred to as the opportunity cost. The…
Q: The following graph shows the daily market for shoes when the tax on sellers is set at $0 per pair.…
A: Demand curve is downward sloping whereas, supply curve slopes upwards. An imposition of tax affects…
Q: Which of the below is only true under PC? O MC = MR = P = AR OP MR=D = AR OP=AR = ATC = D OAVC= ATC…
A: Perfect Competition is a market structure in which there are many buyers and sellers of a…
Q: The Stafford plan now offers student loans at 3% annual interest. After two years the interest rate…
A: Given that, Initial interest rate of loans is 3% per annum. Increase in interest rate of loan is 5%…
Q: T/F/U. The Solow Model says that economic growth is a function of two things: capital and ideas.
A: The Neoclassical Growth Theory is an economic model of growth that describes how a steady economic…
Q: PRICE LEVEL OOO W LRAS x Y N AD. QUANTITY OF OUTPUT AD₁ AD₂ SRAS Refer to Figure 33-5. Suppose the…
A: The level of production produced by enterprises and the price level over the long term are related…
Q: Complete the balancing row, in the table below, for the economy of Kaniria which is in equilibrium.…
A: Aggregate expenditure (AE) will be calculated as total of the consumption (C), government…
Q: Calculate the effective annual interest rate for 18% corresponding to each of the following: (a)…
A: The real interest rate received or paid on a loan or investment after taking compounding effects…
Q: 9. Questions and Problems 9 Use the following table to indicate the primary reason for each labor…
A: The labor market refers to the market in which individuals and organizations interact to determine…
Q: The following are the parameters for the simple economy of Minnerva, which has no government…
A: Equilibrium in economics refers to a state where the supply and demand for a product or service are…
Q: A custom motorcycle company can produce more motorcycles if it has more workers. The company has…
A: Marginal product of labor (MPL) provides a detail on an increase in total output when company adds…
Q: Assume that you're planning to sell jackets in New York. In the Bronx, 5,000 jackets are demanded at…
A: Demand is the consumer's intention to buy a specific product or service. The demand for a specific…
Q: 69. If the price of labor falls relative to the price of capital, and as a result the quantity of…
A: Assuming that the consumer's overall utility or satisfaction does not change, the substitution…
Q: 1. Assume a Ricardian trade world where there is only one factor of production. We divide the world…
A: Gains from trade are the increase in the consumption opportunities that result from indulging in the…
Q: Consider the market for chocolate candy bars. Assume that it has “standard” supply and demand…
A: Demand represents the amount of a good or service that consumers are willing and able to buy at a…
Q: The following table provides some information on government spending (G) and tax revenues (T) at…
A: Real GDP and Govt spending: GDP or gross domestic product is the sum of the value of all end…
Q: Regression through the origin Occasionally, one wants to impose that the predicted is zero when all…
A: Regression model is a statistical tool used to investigate and model the relationship between a…
Q: (Table: Employment and Output in the Buckwheat Market) Use Table: Employment and Output in the…
A: The profit-maximizing quantity of labor is the level of employment that maximizes a firm's profits.…
Q: Assume competitive markets (prices are given) and that the demand is more elastic than supply. Which…
A: Competitive market refers to a marketplace where there are large number of buyers and sellers and no…
Q: The town of Cleanville lies next to a lake, which the residents of the town use for fishing,…
A: The marginal cost implies the increment in production costs generated by the production of…
Q: Consider the following production function. Y=KUSNO.S. Consider K/N=1. Now consider a doubling of…
A: Production function shows the relation between physical input and physical output , or in simple…
Q: What is the money multiplier BEFORE the reserve requirement was lowered to 11.5 percent?
A: The money multiplier, also known as the monetary multiplier, is discussed under monetary economics…
Q: What would be the effect of a hurricane that damages buildings and roadways in the Gulf Coast? LRAS…
A: The AS-AD model, also known as the Aggregate Supply-Aggregate Demand model, is an economic model…
Q: In CES production function, the elasticity of substitution between two inputs is: a) Increases…
A: Elasticity refers to an economic concept used to calculate the change in the aggregate quantity…
Q: Task 10 Which of the following statement (s) correct: a) When the real interest rate is relatively…
A: Considering the 4 given statements and the reasoning, the statements which are considered to be true…
Q: 1.Explain the producer behavior related to change in price (maximizing profit, minimizing loses,…
A: Producers are people or firms who supply labor and products on the lookout for a profit. The way of…
Q: A monopoly is considering selling several units of a homogeneous product as a single package.…
A: A monopoly is selling homogenous products as a single package. The optimal number of units to put…
Q: Q12. An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last…
A: Gross Domestic Product, or GDP, is a measurement of a nation's economic output.It is described as…
Q: 1. A consumer likes to attend food festivals and consumer other goods. Suppose x measures the number…
A: In all other respects being equal, a typical good is one for which demand rises as income rises. In…
Q: The small nation of Capralia has an abundant stock of Pashmina goats, a breed that yields…
A: Equilibrium refers to the point where the demand curve intersects the supply curve.
Q: A catering firm has a fixed cost of 800 units and a variable cost of 15 + 4Q per unit where Q…
A: Fixed costs refer to a firm's costs of production that are not dependent on the output, i.e., do not…
Q: 3. The figure shows supply and demand for planting trees, based on private costs and private value.…
A: 3) When a third party benefits from the production of a good, this is referred to as a positive…
Q: The input-output matrix for a simplified economy with just three sectors (natural resources,…
A: The input-output model is a mathematical representation used in economics to analyze the…
Q: What are the various costs when output is 5 Total Output 0 1 2 3 4 5 6 Variable Fixed Cost Cost 50…
A: Variable cost is defined as the cost which changes with a change in the output level. It means that…
Q: Item Year 1 Year 2 Apples 20,000 @ $0.25 each 30,000 @ $0.30 each Bicycles 700 @ $800 each 700 @…
A: GDP: GDP or gross domestic product is the sum of the value of all end commodities produced within…
Q: uppose, the total demand deposit (DD) is $40,000 and the actual deposit is $4500. What is the Fed's…
A: Central bank of a country sets the reserve requirement ratio which each commercial bank has to…
Q: The tables below show the aggregate demand and two aggregate supplies for the economy of Zandu.
A: The aggregate supply curve depicts the relationship between the price level and aggregate quantity…
Q: Use the following table to answer the question. The table shows the prices and the quantities…
A: Inflation rate refers to a rise in prices over specified period of time. Thus informs on the overall…
Q: allon of gasoline sold. Suppose they decided to impose the tax on producers. in the following graph,…
A: Every commodity's price elasticity of demand will be elastic if there are several substitute…
Q: Consider a simple Bertrand market in which N=3 firms compete by setting prices. As long as they can…
A: Given information There are 3 firms Each firm is competing for price in the market which is known as…
Q: The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A.…
A: Elasticity measures the change in quantity due to change in price. The supply curve is upward…
Q: Using the graph, complete the table that follows by indicating whether each statement is true or…
A: Supply curve is the upward sloping curve. Elasticity measures the change in quantity due to change…
Q: Using the AD-LRAS model, an increase in capital accumulation cause the price level to ["", "",…
A: The Aggregate Demand-Long-Run Aggregate Supply (AD-LRAS) model is an economic framework for…
Q: Suppose that during the past year, the price of a laptop computer fell from $2,500 to $2,300. During…
A: Elasticity measures the percentage change in quantity due to percentage change in price. Mid point…
Q: What principal will amount to $2500 if invested at 5% interest compounded semiannually for 7.5…
A: Compounding is the process of increasing a loan or investment's principal over time by adding…
Q: Draw a demand curve and a supply curve for one of your favourite goods and explain why the point of…
A: If a good is normal then consumers income and good's demand have positive relationship. Which means…
Q: e the diminishing returns to capital by showin ifferent levels of capital per worker.
A: We will take a cobb Douglass production function for solow swan model. In the long run both labour…
Q: For each of the following pairs of goods, select which is likely to have more INELASTIC demand. In…
A: Inelastic demand is a phenomenon where a consumer cannot change his demand more because of any…
Q: A. Giving two (2) examples, compare Foreign Direct Investments with Foreign Portfolio Investments.…
A: Foreign Direct Investments (FDI) and Foreign Portfolio Investments (FPI) are two different forms of…
Q: Shea is pricing materials (wood, wire, pipe, etc.) for new home construction on a “per unit” basis.…
A: The present worth of a project or an investment refers to its value at the time of investment in…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The us government has shutdown a number of times in recent history. Explain how a government shutdown will affect the variables inthe national investment and savings identity. Could the shut down affect the governement budge deficit?In an attempt to reduce the large budget deficit, the government raised taxes and reduced government expenditure but unemployment soared and the budget deficit actually increased. A leading economist remarked: 'The time to attempt to reduce the deficit is when the economy is at overfull employment. Then policies designed to reduce the deficit will not only work but they will also achieve other desirable macroeconomic goals.' Do you agree with the economist? Why or why not? Plz do fast asapts that higher deficits lead to higher interest iuontmont Which of the following is
- he news headline "Consultants replacing high school counselors" deals with the A. how B. what and for whom OC. why OD. what and how OE. for whom The news headline "The government must cut its budget deficit by increasing taxes" deals with the OA. what and for whom OB. for whom OC. what OD. what and how OE. why The news headline "Asteroid mission canceled" deals with the OA. where OB. for whom C. what and how questions of economics. OD. what OE. how questions of economics. questions of economics.A rise in government spending on large infrastructure projects, such as a new high speed railway line, would be most likely to A increase the budget deficit. increase the budget surplus. reduce the balance of payments deficit. increase the balance of payments deficit. B C DWhat is meant by revenue deficit and what does it indicate
- What will be the revenue deficit if the revenue expenditure are $91 And the revenue receipts are $80?if us decides to cover the budget deficit through money creation, what are the impacts?India ranked 8th in size 0f trade deficit The tenure 0f the previ0us g0vernment, fr0m 2013 t0 2018, witnessed a skyr0cketing current acc0unt deficit as it increased fr0m $2.5 billi0n in FY13 t0 $18.9 billi0n in FY18. The maj0r driver was the trade deficit, which widened fr0m $19.2 billi0n in 2012 t0 $35.6 billi0n in 2017, acc0rding t0 data extracted fr0m the ITC’s Trademap.0rg. Imp0rts increased fr0m $43.8 billi0n in 2012 t0 $57.4 billi0n in 2017 and exp0rts decreased fr0m $24.6 billi0n in 2012 t0 $21.9 billi0n in 2017. Between July 2014 and June 2015, REER had increased by 8.83%. It increased by 5.54% in the pri0r fiscal year, FY14. In simpler terms, the rupee was kept ab0ve its equilibrium value between June 2013 and June 2018, making it cheaper t0 purchase g00ds fr0m 0ther c0untries. Furtherm0re, exp0rters l0st their c0mpetitiveness against f0reign c0mpetit0rs in the gl0bal market. T0day, with the rupee cl0ser t0 its equilibrium value, exp0rts have increased. This has p0sitively…
- Explain the contractionary fiscal policy in the short run and long run (ignoring exchange rate and capital flows).What does a declining national debt indicate? The government is receiving more money in taxes than it spends in a year. The unemployment rate is declining. The government is spending more money than it receives in taxes for a given year. O The rate of inflation is declining.Suppose there is an increase in budget deficit, what happens to intrest rates and national savings ?