Few foreign citizens currently work in the U.S. and few foreign firms maintain facilities in the U.S. Solved 4. Velocity and the quantity equation Consider a - Chegg Then the profit-maxi, A firm's production function is given by q = f(L, K) = LK + 2L^2 K - L^3. You buy an iPad from the Apple Store. From this information, if income is $101, what is consumer spending? Numerically. What is the marginal product of labor? b) What is the optimal ratio of c, When an economy is on the flat portion of its AS curve: A. small changes in the price level have little or no effect on the amount of production in the economy. Inflation refers to the increase in the price of the goods and services in an economy during a year. In this economy, equilibrium GDP is ? Use the national income accounting identities to calculate, __________ (66.00/3,780.00/69.00/3600.00). Few foreign firms maintain facilities in the U.S. while many U.S. firms are currently operating abroad. |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}. Our experts can answer your tough homework and study questions. [Solved] Please can you help me out with this question. I would National income will \hspace{70pt}\underline{\text{Total Assets}} \hspace{115pt} \underline{\text{Stockholders' Equity}}\\ Year CPI 2010 98 2011 100 2012 106 2013 107 a. 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. 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. The following table contains information on the economy's money supply, velocity of money, price level, and output. Find a new equilibrium. | Year |Pens |Pens|Oranges |Oranges |. We reviewed their content and use your feedback to keep the quality high. \text{Adjustment} \hspace{54pt} \text{Assets} \hspace{105pt} \text{Stock} \hspace{36pt} \text{Earnings}\\ \hline \text { black, male } & 10 & 460 & 1,060 & & 1,670 \\ Aplia Student Question 4 Chapter 17 - Course Hero Make sure to label both axis and include a dot on the curve that represents our state of economy. For a given output level, a firm's short-run average product of labor is 4 while its marginal product of labor is 5. 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. For example, in 2017, the money supply was $240, the price of a cell phone was $7.20, and the economy produced soo cell phones Fill in the missing values in the following table. Velocity and the quantity equation Consider a simple economy that GDP is not adjusted for crime or other social problems. B. in the short run, the firm cannot add workers. Velocity and the quantity equation Consider a simple economy that produces only pens. Currency: $1,000 Checking Account Balances: $2,000 Savings Account Balances: $5,000 Small-Denomination T. Define Economy and list all inputs and outputs need 100 words at least. (Enter your response as an integer.) How many workers to hire, b. Rajiv manages a grocery store in a country experiencing a high rate of inflation. a. uses the least costly amount of resources available b. has a small number of people who do not work c. resources are used to make the most goods and services possible d. none of the above, Assume that an economy's production function is Y = 1000L^1/2, so that when the marginal product of capital is equated to the real wage the labor demand curve is L = 250, 000 (P/W)^2. Corn Bread 110 $1.00 A) What is the marginal product of labor function? In the short run, when a firm is producing quantities that are greater than the quantity which minimizes short-run average costs, the marginal product of labor (MPL) A. will be rising the more the firm is producing. B. Instruction: Your response should be rounded to the nearest whole number. Price and quantity data are as follows: \hline \text { all others } & & & & & \\ 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. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2015. Suppose the amount the federal government collects in personal income taxes increases, while the level of GDP remains the same. The following table contains information on the economy's money supply, velocity of money, price level, and output. Our experts can answer your tough homework and study questions. Wine 90 11 80 10 Yes. When GDP is computed using the base year prices, it is referred to as real GDP. Assume Government cut income taxes by 10. Since cell phone output did not chang money the change in the money supply was reflected in changes 2017 to 2018 was Solved Consider a simple economy that produces only cell - Chegg The market wage for whites is $15, and the market wage for blacks is $10, Consider the following Economy: Only Coconuts are produced, using labor Year 1 Coconut Producer Total Revenue $20 Wages $5 Taxes $1.5 Interest on Loan $0.5 (a) What is the Coconut Producer contributio, Suppose you are hired to manage a small manufacturing facility that produces Widgets. d. The adjustment to fair value on December 31, 2018, assuming that Eskew, Inc., elected to use the fair value option. 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. Currently U.S. is producing 150 cloth and 50 machines. Depreciation 1,400 John's factory has high fixed costs and low variable costs. explain why real domestic output and the price level are directly related. Which of the following do we subtract from GDP to obtain national income? The labor supply, Think about the short-run production of a small firm that makes sweaters. See answer Advertisement topeadeniran2 The economy experienced economic growth over time. If the equilibrium quantity of airplanes demanded is 400, 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. Using this data, compute the value for savings at each level of disposable income. Real GDP = 137.5 x 1 + 1350 x 30 = 40637.5, Billions of dollars The following table contains information on the economy's money supply, velocity of money, price level, and output. He is paid in cash twice per month. Suppose the economy is operating at full-employment and all capital goods are subject to legal price ceilings set below equilibrium, Suppose that capital costs $10 per unit and labour costs $4 per unit. 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. 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 output? Economy A has a high average rate of time preference relative to economy B?s low average rate of time preference. The soda, pizza and cheese companies employ labor and land to produce their products. These are your only costs. The transaction costs of exchanges are lower in a barter economy than in a money economy. 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. 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. (b) Graph the short-run marginal and average product curves. Compared with lower inflation rates, a higher inflation rate will ______ the after-tax real interest rate when the government taxes nominal interest income. \\ a. A. diseconomies of scale; expanding B. economies of scale; contracting C. diseconomies of scale, Suppose a firm's production function is given by Q= L^1/2 * K^1/2.The marginal product of labor and the marginal product of capital is given by: MPL= K^1/2 /2L^1/2 and MPk= L^1/2/2K^ 1/2. A break-even level of production. Transfer Payments 600 Consider a simple economy that produces only pies. 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. Production from a U.S. firm that operates in Mexico. The marginal product of oranges in one plant is MP^1=1000-O_1, Which of the following could be evidence of a market failure? (Solved) - Consider a simple economy that produces only loaves of bread Draw the short run Phillips curve and relate it to our economy today. Make sure to label both axis and include a dot on the curve that represents our state of economy. Velocity and the quantity equation Consider a simple economy that produces only pens. A) an inefficiently small amount B) an efficient amount C) an inefficiently large amount D) none, Suppose you are the owner of a small factory which produces tables and chairs. If firms in this industry. There are two goods, Coal and Wheat, produced with two factors of production, capital and labour. Would the difference between the real GDP per capita in 1890 and the real GDP per capita today understate or overstate the difference in the population's economic well-being? The following table contains information on the economy's money supply, velocity of money, price level, and output. The inflation rate from For this economy, A) Sh, Consider a small open economy whose relative prices are determined externally in the international market. Chapter 30 Post-Class Assignment Part II: Money Growth and - Quizlet REQUIRED \\ b. spending and income. Gopher Excavators produces shovels in a small factory and sells the shovels in a perfectly competitive market. 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. Explain the effects on goods and money market separately and the interaction of these markets. PI = NI - Corp earnings + Gov Transfer Payments selecting the answers closest to the values you calculate. The following table contains information on the economy's money supply, velocity of money, price level, and output. "Whenever real GDP declines, nominal GDP must also decline." The price of a unit of beef = $19 and the price of a unit of soy = $14. Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ \dfrac{0.36}{7.2} \ \times \ 100 Solved Consider a simple economy that produces only cell - Chegg 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. B. the economy is near full capacity. 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. Consider a simple economy that produces only pies. \\ \hspace{23pt}\text{a} \hspace{27pt} \text{-6,000} \hspace{22pt} \text{+6,000} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{52pt} \text{NA}\\ Assume that the wage rate is $20. Assume there are no traveler's checks. The Nominal GDP for the year 2015 is $7450. Suppose the economy experiences a negative shock to the banking system. 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. Calculate the amount for consumption. a. 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. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption function is: C=100+0.75Y. (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part. Use the e. Consider a simple economy that produces only pies. Suppose that the table below shows an economy's relationship between real output and the inputs needed to produce that output: Consider the following data. 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. 9.5; 4.5; ____; ____; ____; Inflation-induced tax distortions _______ per year. Note that consumption does n, Consider a Solow growth model with no population growth. B. an economy will automatically seek the level of output a, Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. Quantity of Money Price Level Quantity of Output Nominal GDP (Dollars) Velocity of Money (Dollars) (Cell phones) (Dollars) 2017 240 7.20 500 2018 252 500 Year 15 The money supply grew at a rate of fram 2017 to 2018. a. Graph Home's PPF, with apples in the horizontal axis, b. In an economy with rising prices, compared to the base year. The company's production f. Suppose the production function for a firm is given by q = 5L0.5K0.25. Question: Consider a simple economy that produces only cell phones. The marginal product of labor is \frac{10}{E^{0.50. 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}. If the price per unit of the good is $1.9 and labor costs $10 per unit. The following table contains information on the economy's money supply, velocity of money, price level, and output. Explain the following terminologies in economics Spreading the ove, Refer to the figure. Numerically. -When income is $11,000, consumption spending is $7,300. A slice of pizza costs $3. Instruction: E, The following table shows prices an quantities for two goods over three different time periods. Assume the following production possibilities data are for a small country off the coast of South America. All rights reserved. Fill in the missing values in the b) Solve for the short-run cost function (, When the costs of a good are paid for by nonconsumers, _______ of the good is produced. 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. Use a solow diagram to explain how the economy behaves ov. B. more labor and less capita, Suppose a firm's production function is given by the equation Q = 12L^.5K^.5 . Consider a simple economy that produces two goods: pencils and muffins. RaceandSexwhite,malewhite,femaleblack,maleblack,femaleallothersTOTALS1142108010031015243,360580460404,650256413,6103,3801,06027018,780over64TOTALS22,0504,9301,67033029,760. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. Show this change on the PPC above (make sure to label the change clearly). (1) Describe the diff, The diagram below shows the aggregate labor market and aggregate production function for the country of Bonavista. C. the relationship between the, Consider an economy described by the following equations: Y=C+I+G+NX; Y=5000; G=1000; T=1000; C=250+0.75*(Y-T); I= 1000-50r; NX= 500-500*e; r=r*=5. Consider a simple economy that produces only cell phones. Velocity and the quantity equation Consider a simple economy that produces only cell phones. Derive the short run, Economic theory suggests that as plant size increases, the average cost of production should fall. (Solved) - Consider a simple economy that produces only cell phones Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. 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. Suppose we have a small economy that produces only two goods: pineapples and commercial airplanes. Year Velocity of Money (Cell phones) (D 1.44% (Dollars) 7.20 500 2017 2.44% 2018 15 500 5% The money supply 105% rate of from 2017 to 2018. If the wage is $10 and the rental rate on capital is $20, the short run marginal cost is _____. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. Show calculations. The following table contains information on the economy's money supply, velocity of money, price level, and output. The short-run economic outcome resulting from the increase in production costs is known as. . (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. For example, in 2014, the money supply was $240, the price of a pen was $7.20, and the economy produced 500 pens. Question Velocity and the quantity equation Consider a simple economy Capital goods last an average of 50 years ( O, When economies of scale exist, firms with a large volume of production will have lower costs than firms with smaller volumes of production. Get access to this video and our entire Q&A library, What Is Inflation Rate? Further, assume th, Suppose that the table below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 300.00 $400 225.00 300 150.00 200 a. Calculate the velocity of money. The velocity of money remained the same at 15. Assume an economy where the production function is F(K,L) = L2/3K1/3 if L is 125 and K is 1000. The production function is: f(K,L) = K^1/3 L^1/3. Consider a simple economy that produces only cell phones. = 11860 - 1250 + 600 = 11210 Question: Consider a simple economy that produces only cell phones. Suppose that the economy consists of two types of firms: type A firms which produce output using a technology Qa Min 1 3K,L and type B firms which produce output using a technology Qb Min12K,L. B. A) financial services B) electricity C) mobile phones D) mass transportation, 3. c) how many workers to hire. Velocity \ of \ money \ (2011) \ = \ \dfrac{3,600}{240} The total costs C of a firm is: C = 4K + L. a. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GDP and real GDP? Money \ supply \ grew \ = \ \dfrac{12}{240} \ \times \ 100 The value of leisure is not included in GDP. 1. a. 4. d. spending and output. Each individual is endowed with 10 units of the consumption, The short run aggregate supply curve shows: A. what happens to output in an economy as the actual price level changes, holding all other determinants of real GDP constant. \\ The following table contains information on the economy's money supply, velocity of money, price level, and output. Discourage What benefits do cottage industries provide to local populations? The table gives the number of suicides estimated in the U.S. for a recent year by age, race (black or white), and sex. GNP $13,300 2. Resources in an economy are not fully utilized. (a). In Home a worker can produce 3 apples or 5 bananas. If the GDP deflator in 2012 has a value of 98.0, then. Discover the causes of inflation and how to calculate it. Personal Tax Payments 1,500, National income (NI) equals $11860 billion. For example, in. With no changein aggregate demand, how does the economy return to full employment? 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? Indicate whether the following statement is correct or incorrect. Kate's factory has low fixed costs and high variable costs. Velocity and the quantity equation Consider a simple economy that produces only cell phones. Currently, each factory is producing 1,000 boxes of taffy at the same total cost. D. using the least costly prod. The economy is in long-run macroeconomic equilibrium. If the wage is $50/day, find the marginal cost of production. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Each sector employs capital and labor and its production function exhibits constant returns to scale and, 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. The first event is recorded as an example. d) All of the above are correct. The bonds offer a real interest rate of 4.5% per year. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. The government taxes nominal interest income at a rate of 10%. The following table contains information on the economy's money supply, velocity of money, price level, and output. The following table contains information on the economy's money supply, velocity of money, price level, and output. Under what circumstances would GNP be much larger than GDP? GDP deflator = Nominal GDP / Real GDP 100. This tends to ______ saving, thereby ______ the quantity of investment in the economy and ______ the economy's long-run growth rate. Fixed cost is FC = 500 (sunk cost). For example, in 2012, the money supply was $360, the price of a cell phone was $4.50, and the economy produced 800 cell . 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. Agree. 2000 (Base Year) 2009 a. not change GDP or the category under which the spending is counted. d. provide minimum incomes for, Consider the following changes in the economy. Denim pants 80 $40 100 $50 Under a perpetual inventory system, acquisition of merchandise for resale is debited to: The event requires a year-end adjusting entry. What is the marginal product of labor and the average product of labor in the short run? c. costs and revenue. Disposable personal income Consumption 0 100 100 120 200 140 300 160 a. Decrease We will let suicide victims be our population. c. decide how much government regulation there should be. remain the same Consider a simple economy that produces two goods: apples and envelopes 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.