Homework Answers
Find the aggregate expenditure.
AE = C + I + G
= 2 + 0.5(Y - 2) + 2 + 2
= 5 + 0.5Y
Now in this situation Y is currently 0 and AE is positive. This means that firms will experience an increase in the demand for goods and services so that they will start producing. As the output is produced, the gap between the aggregate expenditure and the level of output will decline gradually. Hence the economy is expected to grow in the future.
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Please explain why the economy will grow. Thank you
5. Assume an economy has not produced...
Please Solve Number 6 if you can only solve one problem Font Paragraph .3 . Styles...
Please Solve Number 6 if you can only solve one problem
Font Paragraph .3 . Styles ...2 ..1 5. Assume an economy has not produced a single good or service so that Y=0. The economy however is characterized by the following expenditures parameters C-2, 1 = 2,6-2, T-2, G(T)=2, c=0.5. Which statement is true? a. The economy is bound to grow. b. The economy is bound to shrink. C. The economy is in equilibrium. d. There is no economy. 6....
7. An economy is characterized by the following expenditures parameters =2, T=2,6 =2,T=2, G(T)=2, c=0.5. What will...
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True-False-NotGiven and please Explain why. Thank you very much Economic resources are classified into one of four categories: land, labor, capital, and machinery. A society that is operating at a point outside its production possibilities frontier is using its economic resources inefficiently. The American economy is referred to as a centrally planned economy because the federal government makes most of the economic decisions. A decrease in the price of a good will cause the demand curve for that good to...
#3 in an economy that grows rapidly, what factor has the strongest influence on supply? why?...
#3 in an economy that grows rapidly, what factor has the
strongest influence on supply? why?
#5 under what conditions does the law (hypothesis) of demand
not hold true?
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so what would be the equation y=-/×+.5/ please help me understand why this is a shrink...
so what would be the equation y=-/×+.5/ please help me
understand why this is a shrink
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Please indicate the right answer and explain why. Thank you! Walt's Salmon Farm produced 1,300 fish...
Please indicate the right answer and explain why. Thank you!
Walt's Salmon Farm produced 1,300 fish last week. The marginal cost was $10 a fish, average variable cost was $19 a fish, and the market price was $21 a fish. Walt is__profit, so if nothing changes he will__the number of fish he produces to maximize his profit this week. O A. maximizing; increase O B. maximizing; not change O C. not maximizing; increase O D. not maximizing: decrease E. maximizing;...
My question is d and e Please details thank you d. Assume that G increases by...
My question is d and e
Please details thank you
d. Assume that G increases by 200. By how much will Y increase in short-run equilibrium? What is the government-purchases multiplier (the change in Y divided by the change in G)? e. Assume that G is back at its original level of 1,000, but M (the money supply) increases by 200. By how much will Y increase in short-run equilibrium? What is the multiplier for money supply (the change in...
Please Solve Number 6 if you can only solve one problem
Font Paragraph .3 . Styles ...2 ..1 5. Assume an economy has not produced a single good or service so that Y=0. The economy however is characterized by the following expenditures parameters C-2, 1 = 2,6-2, T-2, G(T)=2, c=0.5. Which statement is true? a. The economy is bound to grow. b. The economy is bound to shrink. C. The economy is in equilibrium. d. There is no economy. 6....
7. An economy is characterized by the following expenditures parameters =2, T=2,6 =2,T=2, G(T)=2, c=0.5. What will be the equilibrium income? a. Y* = 10 b. y* = 12 (c. y* = 14 d. y* = 16 Apregate Expenditure, E 1 13 14 15 16 17 18 19 20 9 10 11 Aggregate income, Y
#3 in an economy that grows rapidly, what factor has the
strongest influence on supply? why?
#5 under what conditions does the law (hypothesis) of demand
not hold true?
QUESTIONS o function competitively? Is vhat conditions must exist in order for a market to function competitively y easy to create these conditions? Why? what is the most 2.) In an economy that grows rapidly for a long period of time, what is the portant factor affecting demand? Why is this...
II. A simple economy with two factor inputs and two outputs. Let there be two factor inputs: land denoted T and labor denoted L. The resource endowment of T is Tº = 8; the resource endowment of L is Lº = 8. Let there be two goods: z and y. Robinson has a utility function u(x,y) := xy. The prevailing wage rate of labor is w, and the rental rate on land is r. Good is produced in a single...
so what would be the equation y=-/×+.5/ please help me
understand why this is a shrink
Ay The graph involves a reflection in the x-axis and/or a vertical stretch or shrink of a basic function. Identify the basic function, and describe the transformation verbally. Write an equation for the given graph. х -5 lui- Identify the basic function. o B. v OD. X A. x C. X2 O EX OF. x3 Describe the transformation. O A. The graph is reflected...
Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income Consumption dollars) (dollars) $e $7,000 10,500 14,000 21,880 21,000 31,589 28,000 42,880 1 35,000 52,500 42,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to two decimal places. a. What is the equilibrium level of consumption? S b. What is the MPC and MPS for...
Please indicate the right answer and explain why. Thank you!
Walt's Salmon Farm produced 1,300 fish last week. The marginal cost was $10 a fish, average variable cost was $19 a fish, and the market price was $21 a fish. Walt is__profit, so if nothing changes he will__the number of fish he produces to maximize his profit this week. O A. maximizing; increase O B. maximizing; not change O C. not maximizing; increase O D. not maximizing: decrease E. maximizing;...
My question is d and e
Please details thank you
d. Assume that G increases by 200. By how much will Y increase in short-run equilibrium? What is the government-purchases multiplier (the change in Y divided by the change in G)? e. Assume that G is back at its original level of 1,000, but M (the money supply) increases by 200. By how much will Y increase in short-run equilibrium? What is the multiplier for money supply (the change in...
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