Macroeconomics Questions and Answers

Exxon recently announced that it will spend $1 million over the next two years to promote and lobby for a carbon tax. Carbon taxes create incentive to reduce consumption of fossil fuels. Nobel prize-w...

Consider the evidence presented in this short article: "Monetary Policy Transmission and the Size of the Money Market Fund Industry"[1]. https://libertystreeteconomics.newyorkfed.org/2019/11/mone...

Question Suppose the FOMC statement: that: "Information received by the FOMC indicates that inflation increased at a brisk pace, while the unemployment rate remains somewhat below its estimated natu...

"Information received by the FOMC indicates that inflation increased at a brisk pace, while the unemployment rate remains somewhat below its estimated natural rate. Price increases in goods and servic...

Consider two firms: Firm A finances itself with floating-rate loans and firm B finances itself with fixed-rate bonds. What do you recommend on monetary policy will affect each firm; and which firm is ...

Information received by the FOMC indicates that inflation increased at a brisk pace, while the unemployment rate remains somewhat below its estimated natural rate. Price increases in goods and service...

[Backgound] Suppose the Federal Open Market Committee (FOMC) releases the following statement about the state of the economy: "Information received by the FOMC indicates that inflation increased ...

[Intro.]Suppose the Federal Open Market Committee (FOMC) releases the following statement about the state of the economy: "Information received by the FOMC indicates that inflation increased at a ...

38. The value of a dollar Group of answer choices a. Has steadily declined since the Revolutionary War. b. Is determined by the amount of gold held by the government. c. Is set by government fia...

32. The chief spokesperson for U.S. monetary policy is the Group of answer choices a. President of the United-States. b. Secretary of the Treasury. c. Chairperson of the Council of Economic Advi...

30. Which of the following countries has the most burdensome budget deficit? GDP ...

29. Significant changes in the price of major raw materials such as oil or agricultural goods are often referred to as Group of answer choices a. Price ceilings. b. Menu costs. c. Supply shocks....

21. The greatest source of federal government tax receipts is the Group of answer choices a. Corporate income tax. b. Estate and gift tax. c. General sales tax. d. Property tax. e. Persona...

19. If Carolyn's consumption rises by $3,000 as her income increases from $26,000 to $30,000 per year, her marginal propensity to consume is: Group of answer choices a. 0.70. b. 0.75. c. 0.90. ?...

The new reality and big debate with the Covid pandemic have been "To wear a mask or not to wear a mask?" "To get the COVID-19 vaccine or not to get the COVID-19 vaccine?". 1) From an economics view...

Read the article link below: 1. State the idea or argument of the article 2. Analyze the article and give your opinion about the article (4 paragraphs) 3. include relevant economic terms used in the a...

If the MPC in an economy is 0.9 and aggregate expenditures increase by $4 billion, then equilibrium GDP will increase by Multiple Choice $40 billion. $4.9 billion. $36 billion. $4 billion. ...

If investment increases by $10 billion and the economy's MPC is 0.75, the aggregate demand curve will shift Multiple Choice rightward by $40 billion at each price level. rightward by $10 billion at ea...

If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $120 billion in the second round, the MPC in the economy is Multip...

Read the article link below and state the argument of the article in few sentence. Analyze the article and write 4 paragraphs about it in your own opinion and include and define relevant economic term...

Read the article link below and state the idea or argument of the article in few sentence. Analyze the article and write 4 paragraphs about it in your own opinion and include and define relevant econo...

You will find quarterly data on real GDP, employment, and average labor productivity for the past two recessions. For both cases, the data starts the quarter before the onset of the recession and then...

1.9 Read the following extract and answer the question that follows, (4 marks) Unrest and economic underperformance haunt the emerging world At the start of the century, developing economies were a so...

11. The government can use fiscal policy to reduce inflation by: Group of answer choices a. Decreasing the government expenditures. b. Increasing the budget deficit. c. Increasing total spending...

Read the article about "Labour market impacts of COVID-19 on Indigenous people: March to August 2020" (https://www150.statcan.gc.ca/n1/pub/45-28-0001/2020001/article/00085-eng.htm) and answer the foll...

2. Read the article about "Labour market impacts of COVID-19 on Indigenous people: March to August 2020" (https://www150.statcan.gc.ca/n1/pub/45-28-0001/2020001/article/00085-eng.htm) and answer the f...

Develop an advertising strategy for Geely's launch of their new "Geometry" in the Australian market. This should include a positioning statement, message and content strategy, message executio...

Help me clarify and calculate this. Labour Force Statistics, Australia (March 2020 to August 2021) Employed (000s) Unemployed Labour force Civilian population aged 000s) 000s) 15 years and older (000s...

Help me calculate this employment rate. d) You have noted that the RBA is also monitoring Australia's unemployment rate. The following table provides labour market data from the Australian Bureau of S...

An ideal fiscal policy is timely. However, it is not always possible to make timely decisions. Explain how issues with "recognition lag" can affect the efficiency of discretionary fiscal policy. The...

A company's macroenvironment presents some of the biggest opportunities and challenges for marketers of the future. Select two factors in Geely's macro-environment that you believe will have the most ...

53. Assume the central bank of country X pursues an expansionary monetary policy, such as buying bonds. What will be the impact in the foreign exchange market? A. The currency of country X will app...

43. Which of the following is true about the long-run aggregate supply curve (LRAS)? A. The LRAS shows the potential output of an economy. B. The LRAS shows the relationship between savings and capita...

38. Suppose Firm A can manufacture 100 pens and 20 umbrellas with a unit of labor, and Firm B can manufacture 80 pens and 10 umbrellas with a unit of labor. Which one of the following statements is tr...

23. The nominal GDP and real GDP of a country in 2017 were $2 trillion and $2.5 trillion respectively. In the base year, the nominal GDP was $1 trillion. What is the change in the GDP deflator from th...

8. Which of the following policy actions is taken by the government (or central bank) of a country to finance its budget deficit? A. Borrowing from the central bank or overseas B. Decreasing the taxes...

1.) Which of the following statements about the short-run aggregate supply curve (SRAS) is true? A. A higher price level will increase aggregate supply, shifting the SRAS to the right. B. An increase ...

Foreigners' demand for which of the following drives the demand for U.S. currency in the foreign exchange market? I. U.S. goods II. U.S. services III. U.S. financial assets A. I only B. II only C. III...

In Switzerland, the price of a domestically produced wristwatch is 100 Swiss francs. If an American tourist can purchase the same watch in Switzerland for $120, what must be the exchange rate between ...

If a country is facing an economic downturn, then how will an appropriate fiscal policy affect interest rates and the value of the country's currency? A. Increase in government spending will decrease ...

Using the FRED economic data set, collect inflation for Canada using both implicit price deflator and CPI and answer the following questions: (35 points) What does the index 2015=100 mean? What ...

1. Suppose a commercial bank has checkable deposits of $100,000 and the legal reserve ratio is 10 percent. If the bank's required and excess reserves are equal, then its actual reserves Multiple Choic...

1. If D equals the maximum amount of new demand-deposit money that can be created by the banking system on the basis of any given amount of excess reserves; E equals the amount of excess reserves; and...

MC Qu. 35-146 (Algo) Refer to the accompanying table. If... Type of Deposit Reserve Requirement Checkable Deposits $7.8 - 48.3 Million 3% Over $48.3 Million 10 Noncheckable personal savings and time d...

The economy is in long-run equilibrium. Suddenly, due to improved international relations and the increased confidence of policymakers, citizens become more optimistic about the future and stay this w...

The level of real national output purchased at each price level is called Group of answer choices a. An aggregate supply curve. b. A market demand curve. c. A derived demand curve. d. An a...

The two methods of measuring the value of GDP are the Group of answer choices a. Input and output approaches. b. Direct and indirect approaches. c. Income approach and expenditures approach...

An increase in demand Group of answer choices a. Results from a decrease in supply. b. Decreased the quantity sold in the market. c. Reflects a decreasing consumer preference for the item. ...

Explain how a positive and a negative economic shock has affected the growth rates in Jamaica during the pre-pandemic 2010-2019 period. Using one monetary and one fiscal policy that has been used by t...

Singapore government has taken various fiscal policy measures to manage the economic impacts of the COVID-19 pandemic and support the economy through the pandemic-induced recession. a.) What is the...

1. Suppose that real domestic output in an economy is 144 units, the quantity of inputs is 12, and the price of each input is $4. The level of productivity is Multiple Choice 12. 144. 10. 24. 2. If th...

An increase in the money multiplier from a value of 2.3 to 2.5 leads to an increase in the money supply. Which one of the following holds true in response to this change? The nominal interest rat...

Use the graph to answer the question that follows. Assume that an economy is in equilibrium at point E as shown above. Which one of the following responses is a result of an expansionary open-market t...

The benefit of ________ is interest, while the benefit of ________ is a portion of a company's profit. a bond; stock or equity cash; a bond cash; a demand deposit stock; a bond business...

Use the graph to answer the question that follows. Assuming that the economy is initially in equilibrium at rate of interest, 'R,' and quantity of loanable funds, 'Q.' What will be the new rate of int...

The saving rate (gross domestic saving as a % of GDP) in Australia, a small open economy, was 15% in 2011 while the investment rate (domestic investment as a % of GDP) was 25%. Consequently, there was...

Present a report regarding the current status of the federal budget and fiscal policies in place in the United States. Consider and explain how the current status of the federal budget and fiscal poli...

Hi could I get some help with these practice questions? 1. Refer to table 6.1. How much (in billions of $) did the government spend in 2020? 2. Refer to table 6.2. Suppose that the residents of Unicor...

Consider a market of five (5) firms that produce the same thing. Market demand is P = 230 - Q and the marginal cost of production is $20. If firms compete through production, what will be the expected...

(Excel exercise) The Federal Reserve Bank of St. Louis offers a wide range of economic data at its Web site, called FRED (fred.stlouisfed.org/). Use these data to examine real GDP for Canada from 1960...

Question 15 If a household consumer withdraws $5,000 from their savings account, initially, M1 will ________ and M2 will ________. A decrease; decrease B decrease; increase C increase; be constant ...

Question 1 (4.09) Which of the following holds true when the Fed decides to buys bonds in the economy? A Money supply will increase. B Nominal interest rate will rise. C Aggregate demand will fall....

1. Explain in detail what is happening in Graph B of Figure II and, after examining the data in the graph of Figure I, identify in what period of time this situation is occurring. 2. Explain in detail...

1.) An increase in the price level corresponds to a decrease in aggregate demand an increase in aggregate supply movement along the aggregate supply curve an inflationary gap a recessionary ...

Part b) Let us assume that hand sanitizer sellers in these online market platforms are making a profit in the short-run. Show this situation using a diagram. Consider the entire global market in thi...

If the value of a production subsidy offered by the government is decreased, ceteris paribus, what will happen to the market for that good? The demand curve will shift right. The supply curve will shi...

Part c) Assume now that the costs of shipping are so large that Australian consumers can buy hand sanitizers from only one designated seller in Australia through both eBay and Amazon and there is no...

Part c) Assume now that the costs of shipping are so large that Australian consumers can buy hand sanitizers from only one designated seller in Australia through both ebay and Amazon and there is no p...

Q.1.1 There has been a decrease in the quantity of exports from South Africa to the United States of America due to various reasons. Q.1.1.1 Explain, with the use of a graph, the impact this had...

What is the solution to number 8? Answer the question based on the following information for a bond having no expiration date: bond price = $1,000; bond fixed annual interest payment = $100; bond annu...

thx!. HE 36 1 53%! The following table shows four nominal exchange rates expressed in Canadian dollars per unit of the foreign currency for two different quarters {Source: Bank of Canada). The column ...

1. Given the Production Function of a perfectly competitive firm, Q = 120L + 9L 2 - 0.5L 3 , where Q = Output and L = labor input a. At what value of L will Diminishing Returns take e...

plz explain, thx. c. The Bank of Canada lowers the bank rate. 0 True 0 False d. The Bank of Canada sells government bonds to commercial banks. 0 True 0 False e. The Bank of Canada purchases government...

plz explain thx!. 'he following table shows the nominal and real exchange rates for two countries and two years (DECD, 2020a 'he column names are the country codes (not the currency codes) and the exc...

Suppose a commercial banking system has $50,000 of outstanding checkable deposits and actual reserves of $9,000. If the reserve ratio is 10 percent, the banking system can expand the supply of money b...

Government Spending Tax Revenues GDP $456 $425 $2,668 The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt....

For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Show your work for any calculations. ...

Complete the sentence: During a deflationary period, a) the real interest rate is less than the nominal interest rate. b) the inflation rate will continue to rise but at a slower rate. c) the nominal...

According to the consumption function stated above, consumption is a function of disposable income. This implies that the saving schedule is _____. If consumption was a function of disposable income...

Q1 The question I need help with is not the one at the bottom of the table, it is actually: Refer to the table. Money supply M2 for this economy is. Money Market Mutual Fund Balances Held by Businesse...

If the MPC in an economy is 0.75, government could shift the aggregate demand curve rightward by $36 billion by a) decreasing taxes by $12 billion. b) increasing government spending by $12 billion. c)...

Year Gov Spend Tax Rev GDP 1 450 425 2000 2 500 450 3000 3 600 560 4000 4 640 620 5000 5 680 580 4800 6 600 620 5000 The accompanying table gives budget information for a hypothetical economy. Assume ...

Refer to the graph. If the initial equilibrium interest rate was 5 percent and the money supply increased by $50 billion, then the new interest rate would be Multiple Choice 4 percent. 1 percent. 3 pe...

An increase in the supply of labor will: Select one: A. decrease the marginal product of capital. B. increase the real wage rate. C. increase the marginal product of capital. D. decrease the real rent...

An increase in the supply of capital will: Select one: A. increase the real rental price of capital. B. decrease the real rental price of capital. C. increase the productivity of capital. D. increase ...

If output is described by the production function Y = AK 0.2 L 0.8, then the production function has: Select one: A. constant returns to scale and the share of labor in GDP is 0.2. B. increasin...

An interviewer for the Current Population Survey has the following information. Jennifer Temple is working as a second-grade schoolteacher. Frank Peabody is attending college full-time to earn a deg...

If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are: Select one: A. $131. B. -$131 C. $31 D. ...

Nending help with these please? Greatly appreciate it, as MACROECONOMICS is very hard for me to understand.. 10 points eBook Suppose a commercial bank has checkable deposits of $100,000 and the legal ...

How large was the U.S. federal budget deficit in the first half of the 2020 fiscal year? Based on recent forecasts how large is the deficit projected to grow by the end of fiscal 2021 on September 30....

Identify at least three policies taken by the Federal Reserve Bank (FED) has taken to stabilize financial markets since mid-March. Explain why these policies considered, extraordinary, unprecedented a...

Discuss how the concepts in this course can be applied to real-world situations and increase your chances of career or life success. Optional: How did the trade war between the United States and China...

The public debt for the economy is Multiple Choice $500 billion. $640 billion. $440 billion. $660 billion.. Amount (in Security Billions) Treasury Bills $220 Corporate Bonds 140 Treasury Notes 120 Cor...

The accompanying table contains hypothetical data for an economy. The size of the M2 money supply is Multiple Choice $3,830 billion. $800 billion. $3,230 billion. $3,030 billion.. MC Qu. 34-157 (Algo)...

Business Cycles Question 1 For two straight quarters, business inventories increase at a sharp rate. This most likely indicates A A was wrong so here's the rest of the choices B a recovering econom...

You need to hire some new employees to staff your startup venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them: Employe...

Suppose the ABC bank has excess reserves of $1,000 and checkable deposits of $30,000. If the reserve requirement is 10 percent, what is the size of the bank's actual reserves? Multiple Choice $4,000 $...

Please show explanations and any algebraic solutions that may apply. Thank you. 1. The COVID-19 pandemic in 2020 had devastating effects on Brazil's economy, as in many other countries. Brazilian ho...

The government of the United States is stimulating the economy in 2021 with a package of temporary fiscal expenditure (i.e., public consumption) in addition to what it had planned to spend at the begi...

Suppose in Ghana this year the real income, price level, interest rate, exchange rate, net taxes, conditions in the rest of the world, and expectations of future trends in the economy are given for ho...

1. This question is based on the article, "Fiscal Multiplier at the Zero Bound: Evidence from Japan," https://www.frbsf.org/economic-research/publications/economic-letter/2021/may/fiscal-multipl...

1. The COVID-19 pandemic in 2020 had devastating effects on Mexico's economy, as in many other countries. Mexican households' experienced significant restrictions in their access to many consump...

Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market Question 1 Which of the following Federal Reserve actions could lead to an appreciation of the U.S. dollar? A An i...

The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $200, what will be the interest rate yield to a...

The table gives information about the relationship between input quantities and real domestic output in a hypothetical economy. If the price of each input is $4, the per-unit cost of production in ...

Balance of Payments Accounts Question 1 A surplus in a country's financial/capital account necessarily means A an inflationary economy B a recessionary economy C a country's exports exceeding its i...

Suppose a commercial banking system has $100,000 of outstanding checkable deposits and actual reserves of $30,000. If the reserve ratio is 20 percent, the banking system can expand the supply of money...

Automatic Stabilizers Question 1 As GDP increases, tax revenue _____ and the unemployment rate generally ______. A decreases; decreases B increases; increases C decreases; increases D increases; d...

Fiscal Policy Question 1 Which of the following would be an expansionary fiscal policy? A Placing a limit on government expenditures B Raising the income tax rate C Increasing the corporate tax r...

Question 2. The Federal Reserve Bank of St. Louis offers a wide range of economic data at its Web site, called FRED (fred.stlouisfed.org/) including data for Japan. We can use these data to compare th...

Type of Deposit Reserve Requirement Checkable Deposits $7.8 - 48.3 Million 3% Over $48.3 Million 10 Noncheckable personal savings and time deposits 0 Refer to the accompanying table. If a bank has $...

A bank that has assets of $180 billion and a net worth of $40 billion must have Multiple Choice liabilities of $140 billion. excess reserves of $40 billion. liabilities of $40 billion. excess reserves...

Refer to the accompanying table. The value of the money included in M2 but not counted in M1 is. Billions of 818 639 965 Refer to the accompanying table. The 1walue of the moneyr included in M2 but no...

ItemBillions of DollarsCheckable Deposits$2,180Small Time Deposits350Currency Held by the Public80Savings Deposits, Including Money-Market Deposit Accounts1,300Money-Market Mutual Funds Held by Indivi...

1. Effective collective bargaining will: a) raise the wage of union workers b) increase the demand for union workers c) none of the options d) decrease the supply of labour in the non-unionised parts ...

Use the graph to answer the question that follows. Suppose the demand for beef in the market changed due to a sudden increase in chickens affected by bird flu in the country. Which point on the graph ...

Use the graph to answer the question that follows. The graph for a competitive output market shows demand shifting from D to D′ and supply shifting from S to S′. Which pair of events is consistent...

Use the graph to answer the question that follows. If the graph above represents the loanable funds market (of dollars) in the United States, what will be the impact in the foreign exchange market fro...

Use the graph to answer the question that follows. On the accompanying graph, aggregate demand changes from AD to AD′. Which of the following is a likely explanation? A. An increase in personal inco...

During the prior year, the nominal interest rate was 10% while borrowers received a real return of 3%. What must have been the rate of inflation during that time period? A. 3% B. 7% C. 10% D. 13% E. C...

Which of the following negatively affects the government's expenditure on various future obligations? A. A surplus in the government revenue B. Inflation in the economy C. Lags in government policies ...

For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts. Assume that an economy is in a short-run macroeconomic equilibrium...

Big changes can happen to wealth distribution. In the twentieth century those were WWII and the Reagan presidency. Both profoundly changed wealth distribution. Below we have an economy undergoing such...

At 40($ billion) your economy is in recession so you stimulate AD1 to AD2 and, to make sure, you do so again from AD2 to AD3. Complete the three scenarios below. 1. At GDP 40 your price level is__ 2...

2 According to the Permanent Income Hypothesis, how will the paths of borrowing and consumption change in response to: (i) A temporary decrease in income (ii) A permanent decrease in income (iii) ...

(i) Explain the central bank's loss function and how are the central bank's preferences reflected in the loss function? (ii) Assuming 𝛼 = 𝛽 = 1 in the Loss function and the Phillips curve, deriv...

Which of the following would reduce the money supply? Multiple Choice Chartered banks loan out excess reserves. Chartered banks use excess reserves to buy government bonds from the public. A cheque cl...

For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Use arrows to indicate the direction ...

Please answer the question below, and no explanation is needed. Just list what you think (T/F) according to the order of questions. Suppose that the inflation rate in Canada is close to 1%, Given the ...

Please briefly explain how you calculate it. The following table shows a money supply M2++ in billions of dollars, a real GDP in billions of dollars of 201 2 and a GDP deflator base 100 = 2012 in Cana...

Please have a look of the question below. If possible, please briefly explain why you select those options. 3. Select all policies that the Canadian government has implemented at least once since 1867...

Please have a look of this question below. If possible, please briefly explain why you choose those options. 2. Suppose Canada falls suddenly into a recession. Select all fiscal policies that are like...

(i) Explain the economic intuition behind the upward sloping wage-setting curve in the real wage and employment space? [3] (ii) Assume that the economy initially at the WS-PS equilibrium. What happe...

Takeover bid to acquire a part or all shares in another company can be: Select one: a. Hostile takeover only. b. Friendly merger only. c. Acquisition of an asset, a subsidiary or of the whole entity...

QUESTION 1 The interest rate effect states that recessions _ spending as well as prices causing interest to _, which makes lending _. decrease, decrease, easier increase, increase, harder decrease, de...

ECO 103 Ch.10&11 Self-adj or Instability & Fiscal Policy ANSWERS FOR THE CHOICES NO NEED FOR EXPLAINATION. THANKYOU QUESTION 1 New government purchases of +600 causes cumulative spending in ...

Forum: Ch.10&11 Disc: Self-Adj or Instability, Fiscal Policy ECO 103 DISCUSSION JUST ANSWERS NO EXPLAINATION NEEDED: 1. A left-wing peace-loving president takes office and slashes defense spend...

explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options - "True", "False" or "Uncertain" and then provide arguments to justify your selection...

1)The goal of any economy is to reach potential where LRAS is located and for this economy is at ___GDPr. 2)AD' and AS' reach an equilibrium at GDPr ___ and Ps ___ and since this GDPr is less/more (...

Question 1: Autonomous consumption for above economy is : MPC is: and MPS is: QUESTION 2: Short-run equilibrium is at : QUESTION 3: When consumption is 15, income is : QUESTION 4: When consumptio...

According to the permanent income hypothesis, how will the paths of borrowing and consumption change in response to: (a) A temporary decrease in income when it occurs. (b) A permanent decrease in inco...

Exercise 2 (8 points): Below is the natural unemployment rate in 2017 for U.S., Canada, and the European Union Area: · Natural unemployment rate in U.S. was 4.4 % · Natural ...

Total points: 15 Exercise 1 (7 points) A. Assume that in an economy only 3 goods are produced and consumed: beans, fruit, and fish. Suppose that on January 1, beans sold for $2.50 per pound, f...

Yohanna, the CEO of a corporation operating in Ethiopia, decides to raise the wages of her workers, even though she faces an excess supply of labour. Which of the following is an expected result from ...

A. Assume that in an economy only 3 goods are produced and consumed: beans, fruit, and fish. Suppose that on January 1, beans sold for $2.50 per pound, fish was $3.00 per pound, and fruit was ...

Below is the natural unemployment rate in 2017 for U.S., Canada, and the European Union Area: · Natural unemployment rate in U.S. was 4.4 % · Natural unemployment rate in...

Below is the natural unemployment rate in 2020 for U.S., Canada, and the European Union Area: Natural unemployment rate in U.S. was 4.4 % Natural unemployment rate in Canada was 9.75 %. Natural unempl...

Assume that in an economy only 3 goods are produced and consumed: beans, fruit, and fish. Suppose that on January 1, beans sold for $2.50 per pound, fish was $3.00 per pound, and fruit was $1.50 per p...

Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of in...

Suppose that the economy is characterized by the following behavioral equations: C = 120 +0.60 YD I = 130 G = 150 T = 100 a. Equilibrium GDP ( Y ) = ( Round your resp...

Part 1 - Check Your Understanding- U se the information in the paragraph to answer the questions. Assume that policymakers believed that the marginal propensity to consume (MPC) was 0....

The government of Australia has embarked on various policies such as Job Keeper and provision of subsidies to firms in order to reduce the severity of COVID 19 on the economy. Suppose the money supply...