A Bureau of National Affairs survey found that 79% of employers provide their workers with a two-day paid Thanksgiving holiday with workers off both Thursday and Friday (USA Today, November 12, 2009). Since cell phone output did not chang money the change in the money supply was reflected in changes 2017 to 2018 was M=money supply, V=velocity, P=price level, Y=real output, k=1/V In year 1, Quantecon is a country in which the theory of money operates. | Year |Pens |Pens|Oranges |Oranges |. The following table contains information on the economy's money supply, velocity of money, price level, and output. Inflation-induced tax distortions \hline \text { black, male } & 10 & 460 & 1,060 & & 1,670 \\ Response has to be original. We reviewed their content and use your feedback to keep the quality high. (c) Graph the short-run t, Imagine that an economy produces two goods: flashlights and fishing lures. b. Assume an economy where the production function is F(K,L) = L2/3K1/3 if L is 125 and K is 1000. The equilibrium condition is Y = C+ I 2. For example, in 2019, the money supply was $280, the price of a pie was $7.00, and the economy produced 600 pies. Suppose we have a small economy that produces only two goods The labor costs $6 and pizza sells for $10. Fill in the missing values. How many workers to hire, b. GDP deflator = Nominal GDP / Real GDP 100. The economy is in long-run macroeconomic equilibrium. Which of the following do we subtract from GDP to obtain national income? The following table contains information on the economy's money supply, velocity of money, price level, and output. The government places a modest minimum wage on this industry above the market clearing equilibrium wage. Real GDP = 137.5 x 1 + 1350 x 30 = 40637.5, Billions of dollars a) What is the price level and money supply? Experts are tested by Chegg as specialists in their subject area. The firm has 10 units of capital in the short run. The Inflation rate from 2017 to 2018 was According to the CAGE framework, which of the following is an example of a product most affected by economic distance? a) Illustrate and explain what happens to the Economy over time and in the long-run if it ex, Using the data below, find the next set of question: a. What is the per-worker production function? Velocity \ of \ money \ (2011) \ = \ \dfrac{3,600}{240} Select one: a. Decr. Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. Production from a U.S. firm that operates in Mexico. \end{array} Assume the following production possibilities data are for a small country off the coast of South America. \\ Learn about the inflation rate. Nominal GDP can increase if output falls and prices rise. Yes. Question: Consider a simple economy that produces only cell phones. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2015. The following table contains information on the economy's money supply, velocity of money, price level, and output. Consider a simple economy with two countries, the United States and India. Paul s Pizza Parlor bakes pizza pies according to the following production function: Q = 3L + 0.3L^2 - 5L^3. National income will For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. $1 per pound, Commercial airplanes 10 airplanes $10 million per airplane. \\ These sweaters are made using a combination of labor and knitting machines. B. What is t, Both Kate and John own saltwater taffy factories. Our experts can answer your tough homework and study questions. A. The consumer can borrow or save at the interest rate 10%. Eskew, Inc., which closes its books on December 31, is authorized to issue $500,000 of 9%, 15-year bonds dated May 1, 2018, with interest payments on November 1 and May 1. With the steel she produced 10 authentic sculptures that she sold for $1,000 each to a local art dealer. You can produce 30 units that you can sell, The first principle of economics is that people face trade-offs. See answer Advertisement topeadeniran2 In the short-run, the level of capital is fixed. They have a total of 2000 crates of oranges. Compared with lower inflation rates, a higher inflation rate will ______ the after-tax real interest rate when the government taxes nominal interest income. (a) Graph the short-run total product curve. You will need to give up your current job that pays you $20,000. Provide the name and shape. Fill in the missing values in the following . b) Find the steady-state capital stock per worker, and con, Consider the following aggregate expenditure model of an economy: C = 50 + (8/9)Yd T = (1/4)Y I = 100 G = 150 X = 100 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y, i) Suppose the following information is given about an economy that is described by the Solow model with technological progress and with population growth: \delta = 0.11 g_A=0.02 g_N=0.03 Then the ste. All rights reserved. c. Assuming that this economy produces only the thr. (less than), Consider the following simple economy that produces only three goods: [Solved] Please can you help me out with this question. I would B) For what values of labor does increasing marginal product exist? RaceandSex11415242564over64TOTALSwhite,male2103,36013,61022,050white,female805803,3804,930black,male104601,0601,670black,female040270330allothersTOTALS3104,65018,78029,760\begin{array}{|l|l|l|l|l|l|} b. Suppose an economy producers three goods: Apples, oranges, and bananas. If the wage is $10 and the rental rate on capital is $20, the short run marginal cost is _____. Will a hike in the gas tax, Refer to the budget line shown in the diagram. The following table contains information on the economy's money supply, velocity of money, price level, and output. Createyouraccount. For example, in 2010, the money supply was $320, the price of a cell phone was $8.00, and the economy produced 600 cell phones. The total amount of money received in an economy by it, Use examples to distinguish between the resource market and the product market in the circular flow model. The price of a unit of beef = $19 and the price of a unit of soy = $14. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The following table contains information on the economy's money supply, velocity of money, price level, and output. C. maximizing the returns to factors of production. Solved 5. Velocity and the quantity equation Consider a - Chegg remain the same Suppose GDP in this country is $1,175 million. Will you buy a flat screen or 3D television? Since cell phone output did not change from 2017 to 2018 and the velocity of money the change in the money supply was reflected In changes in the price level. Numerically. 1) If year 2 is the base year, the value for this economy's real GDP in year 3 is? Labor can be used to produce only two commodities - X a necessity good (food), and Y, a luxury good (music and merriment) Su, Consider Live Happley Fields, a small player in the strawberry business whose production has no individual effect on wages and prices. Assume Government expenditure has increased by 10. There are two goods, Coal and Wheat, produced with two factors of production, capital and labour. Also suppose the economy is operating at full employment. Although short-term interest rates have historically averaged less than long-term rates, the heavy use of short-term debt is considered to be an aggressive strategy because of the inherent risks associated with using short-term financing. It can produce two goods, apples and bananas. If the marginal product of capital is 50 and the marginal product of labour is 50, then in the long run the firm should in order to minimize its costs of producing its output. a. not change GDP or the category under which the spending is counted. Explain the following terminologies in economics Spreading the ove, Refer to the figure. The table below provides information about an open economy with a public sector. L stands for number of workers. GDP only counts final goods and services and not intermediate goods. Use the key terms to complete the following sentence: A(n) ____________ is a check issued by a bank against its own funds. B. Th, Consider the following model of a very simple economy: C=100+0.8Y+0.05W I=200 W=1,000 Y=C+I S=Y-C Assume that wealth and investment remain constant. Calculate the velocity of money. In an economy with rising prices, compared to the base year. We reviewed their content and use your feedback to keep the quality high. Calculate the GDP of this economy by the product and the expenditure approach, assuming that all values ar, Which of the following would show an efficient economy? Velocity and the quantity equation Consider a simple economy that Now suppose the Fed unexpectedly increases the growth rate of the money supply, causing the inflation rate to rise unexpectedly from 4% to 6% per year. Be su. Production Combin, Consider the following information describing an economy with demand-determined output. Chapter 30 Flashcards | Quizlet Instruction: E, The following table shows prices an quantities for two goods over three different time periods. Which of the following will describe the marginal product of labor (MP_L) for this production function? We are interested in possible relationships between age, race, and sex. 3. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. Note that consumption does n, Consider a Solow growth model with no population growth. b. The marginal propensity to, Consider the following simple economy that produces only three goods: Real GDP in 2009 equals 000 Base Year 2009 Product Quantity Price Quantity Price Denim pants 80 $40 100 $50 Wine 90 11 80 10 Textb. Consider a simple economy that produces only pies. The following table Become a Study.com member to unlock this answer! Discover the causes of inflation and how to calculate it. However, when examining the operation of large health and medical facilities, the opposite is often t, Suppose you are hired to manage a small manufacturing facility that produces Widgets. According to the Fisher effect, as expectations adjust to the new, higher inflation rate, the nominal interest rate will ______ to In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is: C=100+0.75Y. |Q| 0 |20 |60| 110 |170| 240| 290| 330| 355| 370| 380 |L |0| 1| 2| 3 |4 |5 |6| 7 |8 |9 |10 Suppose short run fixed costs are $200 and the wage, Suppose that a firm's production function is given by q = 20E^{0.50}. Below is a Production Possibilities Table of Consumer Goods (things that consumers buy to satisfy wants) and Capital Goods (things that businesses buy to make them more productive). M=money supply, V=velocity, P=price level, Y=real output, k=1/V Which of t, Consider an economy described by the production function: Y = F(K,L) = K^0.4 L^0.6 a. Decreasing, Chapter 30 Post-Class Assignment Part II: Mon, SS Persia, Greece, Rome multiple choice test, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Unit 5: Civil War & Reconstruction Study Guide. C. each additional unit is cheaper to produc, When economies of scope are strong, a. large-scale, single-product firms will be able to reach a minimum efficient scale (MES) more quickly. B) the scale of operation at which economies of scale are exhausted. Do not include "all others" for parts fff and ggg. C. attempts to increase the output of the economy wil, If an economy is being "productively efficient," then that means the economy is A. producing the products most wanted by society. C. If a company follows a policy of matching maturities, this means that it matches its use of common stock with its use of long-term debt as opposed to short-term debt. The following table shows the prices and quantities of the goods over a three-year period. (Enter your response as an integer.) Assume that this economy is currently at point "C". The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. {eq}Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ \dfrac{7.56 \ - \ 7.20}{7.2} \ \times \ 100 Disposable personal income Consumption 0 100 100 120 200 140 300 160 a. 1. b. Apple Inc. pays the designe, Suppose the following information describes a simple economy. This will. Use a solow diagram to explain how the economy behaves ov. Calculate the amount for consumption. He is paid in cash twice per month. {/eq}. Now consider the long-run impact of the change in money growth and inflation. Assuming that the bonds were sold at 100 plus accrued interest on October 1, 2018, prepare the necessary journal entry. GNP $13,300 \hspace{7pt}\text{Event/} \hspace{20pt} \text{Cash} \hspace{5pt}+ \hspace{10pt} \text{Other} \hspace{5pt} = \hspace{10pt} \text{Liabilities} \hspace{5pt} + \hspace{10pt}\text{Common} \hspace{5pt} + \hspace{5pt} \hspace{5pt} \text{Retained}\\ Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ \dfrac{0.36}{7.2} \ \times \ 100 Then use the income-expenditure(45 line) diagram to determine the equilibrium level of GDP. D. all of the above, Consider the following short run production function. Under what circumstances would GNP be much larger than GDP? Suppose the base year is 2001. Question: Velocity and the quantity equation Consider a simple economy that produces only cell phones. Disposable personal income will The following table contains information on the economy's money supply, velocity of money, price level, and output. For example, in 2017, the money supply was $320, the price of a cell phone was $8.00, and the economy produced 600 cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. c) how many workers to hire. GDP is not adjusted for pollution and it does not account for unequal income distribution. Consider a simple economy that produces only cell phones. a. Graph Home's PPF, with apples in the horizontal axis, b. In the long run, capital and labor are both varia, The "minimum efficient scale" of operation in an industry is defined as: A) the smallest plant size that can be operated by firms in the industry. b, Indicate on a graph of the circular flows in the market economy, the real and money flows in which the following items belong: a. "If real GDP stayed the same while nominal GDP declined between 2008 and 2009, then the GDP deflator must also have declined.". how the actual output will deviate from potential output. A. For example, in 2016, the money supply was $400, the price of a cell phone was $5.00, and the economy produced 800 cell phones. a. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. 4. Velocity and the quantity equation 4. Velocity an.docx All of the above would push GNP above GDP. C. all things are produced at the lowest cost. = 11860 - 1250 + 600 = 11210 In this economy, the equilibrium level of real GDP is: A market system (market economy) depends on the market to: a. find the most efficient way of using resources. Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Show how the event and its related adjusting entry affect the accounting equation. John's factory has high fixed costs and low variable costs. Assume that the wage rate is $20. Velocity and the quantity equation Consider a simple economy that produces only pens. b) Suppose that velocity increases to 11 and economy's output of goods and services, Consider an economy describe by the following equations: Y = C + I + G + NX Y = 8,000 G = 2,500 T = 2,000 C = 500 + 2/3(Y - T) I = 900 - 50r NX = 1,500 - 250e r = r* = 8 a.In this economy, so. If the wage is $50/day, find the marginal cost of production. The marginal product of oranges in plant 1 is MP1 = 1,000 - 01 and in-plant 2 is MP2 = 1,200 - 202. Denim pants 80 $40 100 $50 M=money supply, V=velocity, P=price level, Y=real output, k=1/V If in year, The determinants of aggregate supply: are consumption, investment, government, and net export spending. Velocity and the quantity equation Consider a simple economy that produces only cell phones. A) emplo, Suppose in the short run a firm's production function is given by Q = L^{1/2}K^{1/2}, and that K is fixed at K = 36. (Enter your response as an integer.) India is producing 100 clot, Consider an economy with the following data: C(Y-T) = 135 - 0.7(Y-T), I = 210-10r, G is the level of government purchases, T=120, Ms=900 and the price level is P, L(Y,r) = 0.8Y-16r and future expected inflation is zero. \\ The following table contains information on the economy's money supply, velocity of money, price level, and output. Nineteen percent of employers provide a one-day paid holiday with workers off Thanksgiving Day. Depreciation 1,400 Capital and land are fixed factors while labor can move, Consider Australia as a small open economy. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worke, Consider a Solow economy that begins in steady state. If the equilibrium quantity of airplanes demanded is 100, can this economy take full advantage, Based on the Ricardo model, there is gain from trade because A. all things are produced by the most productive workers. Velocity and the quantity equation Consider a simple economy that Today, the typical American works fewer than 40 hours per week. Solved 4. Velocity and the quantity equation Consider a - Chegg In the United States, the difference between GNP and GDP is _________ that of many other countries. Instruction: Your response should be rounded to the nearest whole number. In Home a worker can produce 3 apples or 5 bananas. Draw a graph of the money market to illustrate the effect of the Fed purchases government, Consider the following information describing a closed economy with no government and where aggregate output is demand determined 1. the equilibrium condition is Y = C + I 2. the marginal propensity, Refer to the table above, Consider a simple economy with two countries, the United States and India. If nominal GDP declined between 2008 and 2009, then the the GDP deflator must also have declined. b. Velocity and the quantity equation Consider a simple economy that produces only pens. Consider a simple economy that produces only cell phones. How do you know? Received an $18,000 cash advance for a contract to provide services in the future. The marginal propensity to consume for this economy is: a. Points: 1 / 1 Close Explanation 4. Get access to this video and our entire Q&A library, What Is Inflation Rate? D. Net working capital is defined as current assets minus the sum of payables and accruals, and any decrease in the current ratio automatically indicates that net working capital has decreased. Finally, suppose consumer goods are subject to legal price con, An economy is described by the following equations : C=40+0.8(Y-T) I^p=70 G=120 NX=10 T=150 a) Find the short-run equilibrium GDP for this Economy b) Suppose the potential output for this Economy is $, Consider the information below for a simple economy. \hspace{17pt}\text{Adj.} 1. Graph the short-run marginal and average product curves Graph the short-run total co, If an increase in production lowers your firm's short-run average total cost, your firm is likely experiencing blank and should consider blank output levels. For example, in 2012, the money supply was $360, the price of a cell phone. Explain the following terminologies in economics Spreading the overhead. DPI = PI - Personal tax payments = 11210 - 1500 = 9710. On that date, the bond traded at a price of 99 (99% of par value) in the bond market. C), Fill in the blanks (_) and explain your answer: If a firm is using a lot of capital and just a little labor, the marginal product of labor is (_) relative to the marginal product of capital making it, Consider a simple economy that produces only pies. (b) Graph the short-run marginal and average product curves. The government taxes nominal interest income at a rate of 10%. \hline Assume that this economy produces only two goods X and Y. Agree. 2000 (Base Year) 2009 Solved Consider a simple economy that produces only cell - Chegg Consider a simple economy that produces only cell phones. _______ per year. If th, Suppose that this year's velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) IS $10 billion. For example, in 2019, the money supply was $240, the price of a cell phone was $7.20, and the economy produced 500 cell phones. Given this information, we know that a. saving per worker is less than depreciation per worker in period t. b. saving per worker, The table below contains information on Carrie's total utility TU and marginal utility MU from purchasing of pizza. b. Consider two products, cloth and machines. Refer to the table. GDP would be much higher than it is, but the well-being of the typical person would not necessarily be higher. What is the marginal pro. Examine the four components of GDP and different approaches to GDP calculation. Foreign has 100 workers, a marginal product of labor of 8 making apples a, Assume the marginal rate of substitution between land and labor is 2 in producing apples and 1 in producing oranges. a. Show the effect this will have on national income, unemployment, inflation, and interest rates with the help of an ADAS diagram, assumi, An economy has a recessionary gap. What is the optimal labor demand in the short run? \text{Adjustment} \hspace{54pt} \text{Assets} \hspace{105pt} \text{Stock} \hspace{36pt} \text{Earnings}\\ In this economy, equilibrium GDP is ? Money \ supply \ grew \ = \ \dfrac{12}{240} \ \times \ 100 The following table contains information on the economy's money supply, velocity of money, price level, and output. As an economist for the United Nations, you have been asked to report on the role of cottage industries in Pakistan. If the price of Labor, w = $12 per unit of Labor, what is the firm's marginal cost of production when the firm is producing 48 units of ou, Consider an economy where the aggregate production function is y^1/2 = k^1/2 . {/eq}, GDP (2012) = Money supply * Velocity of money, {eq}Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{GDP}{Cell \ phones} Economists tend to assume that a firm's production function is subject to increasing returns to scale, when the amount is small, and to decreasing returns to scale, when the output is large. Explain the effects on goods and money market separately and the interaction of these markets. If the product made by the labor sells at a price of P=$8 per unit, then the Marginal Revenue Product of, If the economy is producing a combination of goods inside its production possibilities frontier, then a. workers are on vacation b. a significant number of workers have little education c. some resources are being wasted d. technology must improve before, Suppose the marginal product of labor is 12 and the marginal product of capital is 24. Think about the following news item. a) what is the per-worker production function? Draw the short run Phillips curve and relate it to our economy today.
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