Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more...
Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more leisure and less consumption goods. Using the RBC Model, what are the impacts on the following outcomes: a) Labor supply curve: (increase / decrease / indeterminate / no change)? b) Labor demand curve: (increase / decrease / indeterminate / no change)? c) Employment: (increase / decrease / indeterminate / no change)? d) Wages: (increase / decrease / indeterminate / no change)? e) Output: (increase / decrease / indeterminate / no change)? f) Consumption: (increase / decrease / indeterminate / no change)? g) Savings: (increase / decrease / indeterminate / no change)? h) Investment: (increase / decrease / indeterminate / no change)? i) Interest rates: (increase / decrease / indeterminate / no change)?
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Suppose that due to increased drug addiction in the United
States, consumer’s preferences shift toward more...
1. Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward...
1. Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more leisure and less consumption goods. Using the RBC Model, what are the impacts on the following outcomes: a)Consumption: (increase / decrease / indeterminate / no change)? b) Savings: (increase / decrease / indeterminate / no change)? c) Investment: (increase / decrease / indeterminate / no change)?
Suppose a country, whose production and consumption of cell phones is large relative to the world...
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect the world: Multiple Choice demand curve to shift more to the left than the world supply curve as a result. supply curve to shift more to the left than the world demand curve as a result. supply curve to shift more to the right than...
8. Suppose that employers in the United States have discriminatory preferences against Mexican immigrants. All else...
8. Suppose that employers in the United States have discriminatory preferences against Mexican immigrants. All else equal, as the number of discriminatory firms decrease over time, the theory of preference-based discrimination would predict that: (A The relative wages of Mexican immigrants would increase. B. The relative wages of Mexican immigrants would decrease. C. The relative wages of Mexican immigrants would stay the same. D. The change in the relative wage of Mexican immigrants would depend on whether Mexican immigrants are...
During the past 30 years, income inequality in the United States has increased in part due...
During the past 30 years, income inequality in the United States has increased in part due to rapid technological change. How does technological change contribute to income inequality? A.Technology complements the skills of the well−educated while rendering redundant the labor services of unskilled and low skilled workers. This causes a decline in the wages of low and unskilled workers relative to other workers. B. The opportunity cost of investing in technology is investments in human capital. The resulting decrease in...
In 1973 Arab countries imposed an oil embargo on the United States and other developed countries...
In 1973 Arab countries imposed an oil embargo on the United States and other developed countries in the aftermath of the Yom Kippur war. At the same time improved infrastructure and increased income was altering consumer preferences in favor of automobiles over public transportation. If you were drawing a supply and demand graph to illustrate the change in the gasoline market in 1973-1974, what would you say has happened to the supply and demand curves and the equilibrium price and...
Question 16 If the price level increases in the United States relative to foreign...
Question 16 (1 point)If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes:Question 16 options:the output effect.the shift-of-spending effect.the real-balances effect.the foreign purchases effect.Question 17 (1 point)Refer to the diagram. If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be:Question 17 options:E and B, respectively.F and A, respectively.G...
1) Suppose interest rates rise in the United States, but they don't rise in other nations....
1) Suppose interest rates rise in the United States, but they don't rise in other nations. As a result of this change, which of the following is true? I. The demand for the U.S. dollar will increase II. The demand for the U.S. dollar will decrease III. U.S. exports will decrease as a result of the changing value of the U.S. dollar. IV. U.S. exports will increase as a result of the changing value of the U.S. dollar. a) I...
4. A recurring idea in Congress is to move the United States further away from a...
4. A recurring idea in Congress is to move the United States further away from a system of income taxes and towards a system of consumption taxes. A nationwide consumption tax would essentially be a national sales tax, a system that many Western European countries have. It is often referred to as a value-added tax or a VAT Negative consumption is ruled out because it makes no 'economic sense. Zero consumption would be subop timal behavior with either of these...
The figure below depicts the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A.
The figure below depicts the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A.One of the most contentious issues among economists involves the economy’s adjustment to long-run equilibrium. Some economists believe that adjustment can and should occur naturally. This group, the classical economists, stress the importance of aggregate supply. Others see the return to long-run equilibrium as an...
Question 7 Suppose the legislature of Youngland voted to impose a protective tariff on microprocessor chips....
Question 7 Suppose the legislature of Youngland voted to impose a protective tariff on microprocessor chips. Which of the following would be true in the short run? There will be a decrease in microprocessor chip production in Youngland. There will be a decrease in supply of microprocessor chips in Youngland. There will be an increase in microprocessor chip production by foreign nations. I only. II only. III only. I and III only. II and III only. Question 13(Multiple Choice Worth...
8. Suppose that employers in the United States have discriminatory preferences against Mexican immigrants. All else equal, as the number of discriminatory firms decrease over time, the theory of preference-based discrimination would predict that: (A The relative wages of Mexican immigrants would increase. B. The relative wages of Mexican immigrants would decrease. C. The relative wages of Mexican immigrants would stay the same. D. The change in the relative wage of Mexican immigrants would depend on whether Mexican immigrants are...
In 1973 Arab countries imposed an oil embargo on the United States and other developed countries in the aftermath of the Yom Kippur war. At the same time improved infrastructure and increased income was altering consumer preferences in favor of automobiles over public transportation. If you were drawing a supply and demand graph to illustrate the change in the gasoline market in 1973-1974, what would you say has happened to the supply and demand curves and the equilibrium price and...
4. A recurring idea in Congress is to move the United States further away from a system of income taxes and towards a system of consumption taxes. A nationwide consumption tax would essentially be a national sales tax, a system that many Western European countries have. It is often referred to as a value-added tax or a VAT Negative consumption is ruled out because it makes no 'economic sense. Zero consumption would be subop timal behavior with either of these...
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