Question 1 Consider the monthly market for whole grain bread in Tasmania with an upward sloping supply curve and a downward sloping demand curve. The current equilibrium price of whole grain bread is $3 per loaf and 30,000 loaves are bought and sold each month.
a. Draw a diagram showing the monthly market for whole grain bread in Tasmania. Include and label the demand curve, supply curve, equilibrium price and quantity.
b. If the price per loaf was temporarily $4 explain how the price would return to the equilibrium price of $3 per loaf.
c. If the wages of bakers who make the bread increase, show and explain any changes in demand or supply and equilibrium price and quantity of whole grain bread in Tasmania.
d. If the price of margarine increases show in a new diagram and explain any changes in demand or supply and equilibrium price and quantity for whole grain bread in Tasmania. State any assumptions you are making about the relationship between whole grain bread and margarine.
Question 2
a. What is GDP? Explain the three methods that the Australian Bureau of Statistics uses to calculate GDP.
b. If in 2016 the CPI is 100 and nominal wages are $500 and in 2017 the CPI is 120 and nominal wages are $550. What is the level of price inflation from 2016 to 2017? Explain whether real wages have increased from 2016 to 2017?
c. Define structural, frictional and cyclical unemployment. Which of these types of unemployment do the 'long-term unemployed' belong?
d. Explain why the growth in real per capita GDP is a more appropriate measure of economic growth that nominal GDP for the whole country.
e. In an 'economic boom' what is likely to happen to inflation, unemployment and the participation rate? Explain why.
Question 1 Consider the monthly market for whole grain bread in Tasmania with an upward sloping...
Question 2 a. What is GDP? Explain the three methods that the Australian Bureau of Statistics uses to calculate GDP. b. If in 2016 the CPI is 100 and nominal wages are $500 and in 2017 the CPI is 120 and nominal wages are $550. What is the level of price inflation from 2016 to 2017? Explain whether real wages have increased from 2016 to 2017? c. Define structural, frictional and cyclical unemployment. Which of these types of unemployment do...
in a market with an upward sloping supply curve and a downward sloping demand curve, when there is an excess supply, a. b. c. The actual price must be higher that the equilibrium price. The actual price must be lower that the equilibrium price. The quantity demanded is higher than the equilibrium quantity.
Given a downward-sloping aggregate demand (AD) curve and an upward-sloping short-run aggregate supply curve (SRAS), equilibrium occurs where the two intersect. The value on the vertical axis is the equilibrium price level and the value on the horizontal axis is the equilibrium value of real GDP or output. What happens to the economy when AD shifts? It is useful to sketch a graph and show the shift. Suppose, for example, interest rates fall or wealth increases due to a stock...
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1) Consider a normal market with a downward-sloping demand curve and an upward-sloping supply curve. Which of the following cases would definitely result in a decrease in consumer surplus? For each case, assume that the market is initially in equilibrium and that everything else is held constant except for the change described in the case Case 1: The supply curve shifts to the left. Case 2: The supp Case 3: The government imposes a binding price ceiling. Case 4: The...
Can you please fill out all of the questions for whoever does it the last person onky dis half of it. Question 1 20 pts The table below shows production and prices for a stylized economy. Assume the base year is 2015. Auction Price of Y($) of Z i Year Production Price of X of X ($) Production n of Y Production Price of Z ($) 2015 275 units 15 180 units 23 135 units 80 2016 330 units 15.75...
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In a competitive market with a linear upward-sloping supply curve and a linear downward-sloping demand curve, the government imposes a $10 tax per unit bought and sold. The tax causes the equilibrium quantity to fall from 113 units to 101 units. The deadweight loss of this tax is $______