consider a simple economy that produces only cell phones

Product Market C = Ca + 0.7(Y - T) ; Ca = 1,000 - 10r ; T = 100 + 0.15Y ; Ip = 3,500 - 20r ; G = 3,000 NX = 2,000 - 0.4Y Money M. Quantecon is a country in which the theory of money operates. \hline \text { white, male } & 210 & 3,360 & 13,610 & & 22,050 \\ The increase in real GDP per capita between 1890 and today understates well-being because the value of leisure is not included in GDP. For example, in 2011, the money supply was $240, the price of a cell phone was $7.20, and the economy produced 500 cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. If the wage rate is $15 and the firm has sunk costs of $1000 what is the firm's total cost fu, You estimate a short-run production function to be Q = 16L^{0.8} which gives a Marginal Product of Labor function MPL = 0.8*16L^{-0.2} = 12.8/L^{0.2}. selecting the answers closest to the values you calculate. 9.5; 4.5; ____; ____; ____; Inflation-induced tax distortions Response has to be original. 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. If th, Suppose that this year's velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) IS $10 billion. 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). Kate's factory has low fixed costs and high variable costs. What is the marginal product of labor and the average product of labor in the short run? Assume that there are two sectors, manufacturing and farming. For example, in 2018, the money supply was $200, the price of a cell phone was $7.50, and the economy produced 400 cell phones. Suppose an economy producers three goods: Apples, oranges, and bananas. It can produce two goods, apples and bananas. . Velocity and the quantity equation Consider a simple economy that produces only cell phones. B. in the short run, the firm cannot add workers. b.not change GDP, it changes the category under which the spending is counted. The value of the multiplier for this economy is 4. In an economy with rising prices, compared to the base year. Suppose that a simple society has an economy with only one resource, labor. Fill in the missing values in the follow selecting the answers closest to the values you calculate. B. a decrease in the number of smartphone manufacturers. a. The marginal propensity to consume for this economy is: a. C. a decrea. A) financial services B) electricity C) mobile phones D) mass transportation, 3. (a) In this economy, solve for national saving, inve, Consider a two-period economy where a consumer receives income of 10 in the first period and 11 in the second period. If the equilibrium quantity of airplanes demanded is 200, can this economy take full advantage, The table below shows how the average cost of production for airplanes at a certain factory changes as the number of airplanes built at that factory increases. 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. Which of the following statements is CORRECT? Assume that this economy is currently at point "C". Given the real interest rate of 4.5% per year, find the nominal interest rate on Gilberto's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario. B. Suppose the economy experiences a negative shock to the banking system. B) For what values of labor does increasing marginal product exist? For example, in 2017, the mon. The following table contains information on the economy's money supply, velocity of money, price level, and output. c. There are only a handful of firms competing against each other in, Suppose you have a firm whose production function is given by Q=K^0.3L^0.7. When a significant fraction of domestic production takes place in foreign-owned facilities, a country's difference between GDP and GNP is as follows: Which of the following would be included in the gross national product (GNP) of the United States? A break-even level of production. (Enter your response as an integer.) Find the equilibrium real interest rate. -When income is $11,000, consumption spending is $7,300. Examine the four components of GDP and different approaches to GDP calculation. 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. Consider an economy that begins with an output equal to its natural level. Conversely, when calculated using current year prices it is called nominal GDP. As we read this unit, how does the circular flow model illustrate how our economy works? Velocity and the quantity equation Consider a simple economy that produces only pens. 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. On that date, the bond traded at a price of 99 (99% of par value) in the bond market. c. In the absence, Suppose a firm with a production function given by Q=4K^0.25L^0.75 produces 100 units of output. 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. Derive the current-year-quantity price index. Complete the second row of the table by filling in the expected and actual real interest rates on car loans immediately after the increase in the money supply (MS). These are your only costs. Then, average total cost (ATC) is A) 25 cents per unit and average fixed cost (AFC) is 15 cents per unit. Using this data, compute the value for savings at each level of disposable income. What is the marginal pro. If the wage is $10 and the rental rate on capital is $20, the short run marginal cost is _____. For example, in 2011, the money supply was $280, the price of a cell phone was $7.00, and the economy produced 600 cell phones. The soda, pizza and cheese companies employ labor and land to produce their products. Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worke, Consider a Solow economy that begins in steady state. What is the optimal labor demand in the short run? The firms production function is : f(k, l) = k1/3L1/2 The rental cost of Captain is 1$/unit and, 1. Yes. Explain your graph. Consider an economy has the following information 1. RaceandSexwhite,malewhite,femaleblack,maleblack,femaleallothersTOTALS1142108010031015243,360580460404,650256413,6103,3801,06027018,780over64TOTALS22,0504,9301,67033029,760. D. all of the above, Consider the following short run production function. \hline \text { TOTALS } & 310 & 4,650 & 18,780 & & 29,760 \\ Fill in the missing values in the following . Gross Domestic Product (GDP) in which of the following ways? copyright 2003-2023 Homework.Study.com. Consider a simple economy that produces only cell phones. ?1.) Select one: a. Decr. For. \hline \text { white, female } & 80 & 580 & 3,380 & & 4,930 \\ 1) If year 2 is the base year, the value for this economy's real GDP in year 3 is? The following table contains information on the economy's money supply, velocity of money, price level, and output. Suppose the amount the federal government collects in personal income taxes increases, while the level of GDP remains the same. Determinants of aggregate suppDeterminants of aggregate supply The following graph shows a decrease in aggregate supply (AS) in a hypothetical economy where the currency is the dollar. For example, in 2011, the money supply was $240, the price of a cell phone was $7.20, and the economy produced 500 cell phones. Economy A has a high average rate of time preference relative to economy B?s low average rate of time preference. In Home a worker can produce 3 apples or 5 bananas. The money supply is $3 trillion, the price level equals 2, the real GDP is $6 trillion in base-year dollars. Consider two products, cloth and machines. Suppose also that we produce 125 units of beef and 460 units of soy. E. If a company follows a policy of matching maturities, this means that it matches its use of short-term debt with its use of long-term debt. Denim Value+Wine Value + Textbook Value= RGDP {/eq}, {eq}Money \ supply \ grew \ = \ \dfrac{252 \ - \ 240}{240} \ \times \ 100 a) The GDP of this country would be $ million. Assume that K is fixed at 10 in the short run. Explain briefly why an economy that c. The table below provides information about an open economy with the public sector. Suppose half the capital stock is suddenly destroyed(leaving the labor force unchanged). You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ 5\% copyright 2003-2023 Homework.Study.com. The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). Velocity and the quantity equation Consider a simple economy that produces only pens. 3. Fill in the missing values. Production Combin, Consider the following information describing an economy with demand-determined output. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. {eq}Velocity \ of \ money \ (2011) \ = \ \dfrac{GDP}{Money \ supply} c. decide how much government regulation there should be. C. Whe, Suppose that a firm has a production function given by: q= 10 L^{0.4}K^{0.6}. Even if GDP included these types of production, why would it still be an imperfect measure of economic well-being? In 2016, the economy produced 85 f, Consider a firm with the production function, q=(K^1/2+L^1/2)^2. If the GDP deflator in 2012 has a value of 98.0, then. Discuss with 2 diagrams: (The aid of aggregate output market diagram and money mar, Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburger, shirts, and cotton. Numerically. Suppose you have the following disposable income and consumption data for an economy, as shown in the table below. For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell . 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. If Americans still worked 60-hour weeks, as they did in 1890. b. more capital and less la, Suppose the total cost of production in the short run is $500,000 when 2,000,000 units are produced. The efficiency of ma3. Show this change on the PPC above (make sure to label the change clearly). The following table contains information on the economy's money supply, velocity of money, price level, and output. B. Make sure to label both axis and include a dot on the curve that represents our state of economy. Wine 90 11 80 10 Further, assume that all of the cotton is used, Consider a simple economy that produces only three products: tacos, earplugs, and toothbrushes. 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. B. more labor and less capita, Suppose a firm's production function is given by the equation Q = 12L^.5K^.5 . What is the base year for this particular set of CPI data? b. Apple Inc. pays the designe, Suppose the following information describes a simple economy. C. maximizing the returns to factors of production. 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. Inflation refers to the increase in the price of the goods and services in an economy during a year. Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. 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. 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. Fill in the missing values in the Fill in the missing values in the following . The following table contains information on the economy's money supply, velocity of money, price level, and output. Video Games 1,350.00 $60.00, In Year 2, nominal GDP is equal to: $81206.25, and real GDP is $40637.5 (c) Graph the short-run t, Imagine that an economy produces two goods: flashlights and fishing lures. At the equilibrium real wage RW0, the country's labor force works L0 hours and produc, Consider an economy described as follows: a. Compute private saving, public saving, and national saving. All rights reserved. Identifying costs of inflation 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. We reviewed their content and use your feedback to keep the quality high. All rights reserved. Here are the quantities produced and the prices for pineapples and commercial airplanes. Decrease Assume Government cut income taxes by 10. What are the equilibrium levels of: a. GDP? 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. List 3 factors that can change the economy's potential output. The level of prices and the value of money, Money supply, money demand, and adjustment to monetary equilibrium, The classical dichotomy and the neutrality of money, Using money creation to pay for government spending, The Fisher effect and the cost of unexpected inflation. With no changein aggregate demand, how does the economy return to full employment? \end{array} The realization of these economies of scale, however, is far, Consider a simple economy that produces two goods: pens and oranges. a. Graph Home's PPF, with apples in the horizontal axis, b. Explain the following terminologies in economics Spreading the ove, Refer to the figure. Carrie's marginal utility per dollar from increasing cons. explain the three dis, Suppose the following situation exists for an economy: Kt+1/N < Kt/N. Consider a simple economy that produces only cell phones. The following table contains information on the economy's money supply, velocity of money, price level, and output. The money supply grew at a rate of from 2014 to 2015. 1. Since cell ph Change in the money supply was reflected partially did not change from 2017 to 2018 and the velocity of in changes in the price level. Refer to the table. a. b) the size of its factories. Fixed cost is FC = 500 (sunk cost). Consider the following closed-economy IS-LM model: Consumption function Investment function Government purchases and taxes Money demand function Money supply Price level : C = 800 + 0.80 (Y - T) : I, Suppose that some CPI data for a particular economy is shown in the following table. \\ 2. The money wage rate falls, real GDP increases, and the price level rises. What do you suppose determines the, Suppose the marginal product of labor is 10 and the marginal product of capital is 8. Under what circumstances would GNP be much larger than GDP? Corn Bread 110 $1.00 b. spending and income. \hline \text { black, female } & 0 & 40 & 270 & & 330 \\ Disposable personal income will Consider a simple economy that produces only pies. {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 cost are $200 and the wage rate for labor is $50. C. all things are produced at the lowest cost. You may assume all households in the economy ate the same bundle/are the same. The following table contains information on the economy's money supply, velocity of money, price level, and output. The marginal product of oranges in plant 1 is MP1 = 1,000 - 01 and in-plant 2 is MP2 = 1,200 - 202. The economy has two sectors-cloth and food. Also suppose the economy is operating at full employment. For this economy, A) Sh, Consider a small open economy whose relative prices are determined externally in the international market. The table below provides information about an open economy with a public sector. Draw the short run Phillips curve and relate it to our economy today. Not copy pasted answer from google. Do not include "all others" for parts fff and ggg. 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. Indirect Business Taxes 40 Numerically. \hspace{28pt} \text{NA} \hspace{29pt} \text{-4,500} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{45pt} \text{-4,500}\\ \\ The labor supply, Think about the short-run production of a small firm that makes sweaters. We will let suicide victims be our population. The following table contains information on the economy's money supply, velocity of money, price level, and output. Find the probability that a randomly selected individual was a white male. You will need to give up your current job that pays you $20,000. 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. ), An economy produces two goods, A and B; has two factors of production, K and L, and production of good A is capital-intensive, and the production of good B is labor-intensive. a. output and prices. How much L to use to maximize the marginal product of labor? Live Happley's production schedule for strawberries is given in t, Assume an industry uses labor and capital in its production process. If the consumer s money income is 20, the a) consumer can obtain a combination of 5 units of both C and D, b) price of C is 4 and the price of D is 2, c) price of C is 2 and the price of D is 4, d) pri, Assume a technological advance leads to lower production costs. Suppose that John, April, and Tristan have two production plants for producing orange juice. The following table contains information on the economy's money supply, velocity of money, price level, and output. Worker B can produce 10 tables or 10 chairs, and worker C can produce 8 tables or, Suppose you are thinking of starting a new business. Since cell phone output the change in the money supply was reflected money + 2017 to 2018 was. decrease What benefits do cottage industries provide to local populations? Average living standards can be expected to be lower in a barter economy than in a, Consider a decrease in the supply of money that causes output to fall short of full employment as shown in the diagram to the right. Take the following information as given for a small, imaginary economy: -When income is $10,000, consumption spending is $6,500. For example, in 2017, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. In 2011, the value of the GDP deflator is, Based on the table, in Year 2, the value of the GDP deflator is 1960/1680 x 100 =, A simple economy produces two goods, Corn Bread andVideo Games. The following table contains information on the economy's money supply, velocity of money, price level, and output. b. how the actual output will deviate from potential output. d. provide minimum incomes for, Consider the following changes in the economy. |Year|Price of Meat|Price of a Toy |2004|$3 per pound|$2 |2005|$1 per pound|$7 |2006|$4 per pound|$5 Refer to table. Using the line drConsider a decrease in the supply of money th, An economy with zero net exports is described below: C= 80 + 0.75 (Y - T) I^p= 100 G= 150 NX= 0 T= 180 The multiplier in this economy is 4. a. Draw graphs to support your answer. \\ The following table contains information on the economy's money supply, velocity of money, price level, and output.

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