consider a simple economy that produces only cell phones consider a simple economy that produces only cell phones

a) What is the price level and money supply? 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. 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. The short-run average variable cost is a. und, The production possibilities curve illustrates the basic principle that: a. the production of more of any one good will, in time, require smaller and smaller sacrifices of other goods. Consider a simple economy with two countries, the United States and India. Corporate earnings 1,250 Velocity and the quantity equation Consider a simple economy that produces only pens. All of the above would push GNP above GDP. Find the Marginal Product of Labor (MP_L). A. . The money supply grew at a rate of from 2014 to 2015. B. all things are produced by the people of the lowest wage rate. \hspace{28pt} \text{NA} \hspace{29pt} \text{-4,500} \hspace{40pt} \text{NA} \hspace{55pt} \text{NA} \hspace{45pt} \text{-4,500}\\ 4. Velocity and the quantity equation 4. Velocity an.docx Think about the following news item. 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). Price \ of \ cell \ phones \ (2012) \ = \ \$7.56 The marginal propensity to consume for this economy is: a. The following table contains information on the economy's money supply, velocity of money, price level, and output. |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}. 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? The following table contains information on the economy's money supply, velocity of money, price level, and output. RGDP < NGDP because prices are rising. Which of the following is NOT a shortcoming of GDP as a measure of well-being? Disposable personal income (DPI)equals $9710 billion. Consider a simple economy that produces only cell phones. 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 total value added of the artist is $3000. 4. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2015. Here are the quantities produced and the prices for pineapples and commercial airplanes. What will happen to the values of national income, personal income, and disposable personal income? All rights reserved. Assume it is currently in its initial steady state. For a given output level, a firm's short-run average product of labor is 4 while its marginal product of labor is 5. Decreasing A. A slice of pizza costs $3. See answer Advertisement topeadeniran2 Fill in the missing values in the following . a. The marginal product of labor is \frac{10}{E^{0.50. Suppose a production function is q = K^(1/2)L^(1/3) and in the short run capital (K) is fixed at 100. (a) Graph the short-run total product curve. Consider a simple economy that produces only cell phones. The following Assume Government cut income taxes by 10. GDP is not adjusted for crime or other social problems. Show the math work a.) Product Quantity Price Quantity Price What is the best. The size of its factories, c. Which short-run average-total-cost curve to use, d. All of the above are correct, Suppose in the short run, a firm is able to adjust the amount of labor (L) while the amount of capital (K*) is fixed. Draw a graph of aggregate demand and aggregate supply to illustrate the current situation. The following table contains information on the economy's money supply, velocity of money, price level, and output. \text{Adjustment} \hspace{54pt} \text{Assets} \hspace{105pt} \text{Stock} \hspace{36pt} \text{Earnings}\\ Draw graphs to support your answer. Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. Learn the definition of gross domestic product (GDP) and review types and examples. Get access to this video and our entire Q&A library, Gross Domestic Product: Definition and Components. 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. Is the purchase of a final good Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. The following table contains information on the economy's money supply, velocity of money, price level, and output. Points: 1 / 1 Close Explanation 4. 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. 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. 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? 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. Further, assume that all of the cotton is used in the production of shirts. The following table contains information on the economy's money supply, velocity of money,. GNP is the value of final goods and services produced by residents of the U.S. Year Quantity of money Velocity of money Price level Quantity of output Nominal GDP (Dollars) (Dollars) (Cell phones (Dollars) 2017 240 15 7.20 500 3,600 , Consider a simple economy that produces only cell phones. In 2016, the economy produced 85 f, Consider a firm with the production function, q=(K^1/2+L^1/2)^2. For example, in 2017, the mon. The following table contains information on the economy's money supply, velocity of money, price level, and output. NNP = GNP - Depreciation = 13300-1400 = 11900 The Gross Domestic Product evaluates general production in the economy. If the GDP deflator in 2012 has a value of 98.0, then. Consider a simple economy that produces only pens. The following table Draw a production possibility curve (PPC). Ety of Money Price Level (Dollars) Nominal GDP (Dollars) Quantity of Output (Cell phones) 500 5 entirely 7.20 15 from 2017 to 2018. N GDP = 137.5 x 1.5 + 1350 x 60 = 81206.25 Examine the four components of GDP and different approaches to GDP calculation. a. This firm operates in the short run where capital (K) is fixed at a quantity of 16. Suppose that a simple society has an economy with only one resource, labor. 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. These sweaters are made using a combination of labor and knitting machines. b) the size of its factories. Each inhabitant can gather 25 coconuts in one day or bu, An economy produces three goods, soda, cheese, and pizzas, each by a separate firm. 3. Suppose we have a small economy that produces only two goods: pineapples and commercial airplanes. GNP considers production that occurs outside the U.S. He is paid in cash twice per month. 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. explain the three dis, Suppose the following situation exists for an economy: Kt+1/N < Kt/N. Suppose you are deciding whether to spend your tax rebate check on AirPods or save the money for a new smart phone. The following table shows the prices and quantities of the goods over a three-year period. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. For example, in 2016, the money supply was $360, the price of a cell phone was $9.00, and the economy produced 800 cell phones. 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. a) what is the per-worker production function? -When income is $11,000, consumption spending is $7,300. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. There is no government or foreign trade. Gilberto receives a portion of his income from his holdings of interest-bearing U.S. government bonds. b. The market wage rate w=1 and price of capital r=4. Assume that the aggregate production function has the form Y = K^(1/3) L^(2/3). Rajiv manages a grocery store in a country experiencing a high rate of inflation. Economy A has a high average rate of time preference relative to economy B?s low average rate of time preference. Derive the short run, Economic theory suggests that as plant size increases, the average cost of production should fall. Textbooks 15 90 20 100, Real GDP in 2009 equals $6680. Which range of aggregate supply would represent an economy in the short term when prices are sticky and the economy is producing low levels of output? The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). Solved Consider a simple economy that produces only cell - Chegg Round to 2 decimal places. b. 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. C. a decrea. Suppose that John, April, and Tristan have two production plants for producing orange juice. The Inflation rate from 2017 to 2018 was The table gives the number of suicides estimated in the U.S. for a recent year by age, race (black or white), and sex. The following table contains information on the economy's money supply, velocity of money, price level, and output. Chapter 30 Post-Class Assignment Part II: Money Growth and - Quizlet How. The money supply is $3 trillion, the price level equals 2, the real GDP is $6 trillion in base-year dollars. (Enter your response as an integer.) REQUIRED Net working capital is defined as current assets minus the sum of payables and accruals, and any increase in the current ratio automatically indicates that net working capital has increased. What is the marginal product of labor? The bonds offer a real interest rate of 4.5% per year. . Show this change on the PPC above (make sure to label the change clearly). Consider a simple economy that produces only pies. The following table \\ Kate's factory has low fixed costs and high variable costs. | Year |Pens |Pens|Oranges |Oranges |. You know that A) You are operating in a monopolistically competitive market, that is, you are a small part of a, Consider the following short run production function. 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. {/eq}, GDP (2012) = Money supply * Velocity of money, {eq}Price \ of \ cell \ phones \ (2012) \ = \ \dfrac{GDP}{Cell \ phones} If you were attempting to forecast the level of consumer spending by households, which measure of total production or total income might be most helpful in making your forecast? Use a production possibilities frontier to illustrate society's trade-off between two "goods" a clean environment and the quantity of industrial output. \\ a. Question: Consider a simple economy that produces only cell phones. Question Velocity and the quantity equation Consider a simple economy that produces only cell phones. Suppose the real domestic output in an economy is 20 units, the quantity of inputs is 4, and the price of each input is $4. Take the following information as given for a small, imaginary economy: -When income is $10,000, consumption spending is $6,500. 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? The economy experienced economic growth over time. The purchase of tires from Bridgestone tire company by an automobile manufacturer. Velocity and the quantity equation Consider a simple economy that produces only pens. Nineteen percent of employers provide a one-day paid holiday with workers off Thanksgiving Day. We are interested in possible relationships between age, race, and sex. b. spending and income. All numbers are in millions of dollars. The following table shows the relationship between output and number of workers in the short run. 1.44% Quantity of Money (Dollars) Price Level (Dollars) Quantity of Output (Cell phones) Nominal GDP (Dollars) ve 2.44% Year Money 500 2017 240 7.20 5% 500 2018 252 105% The money supply grew at a rate of from 2017 to 2018. 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. Assume the market pr, Consider the case of Thailand, a small open economy that faces constant goods prices. (1) Describe the diff, The diagram below shows the aggregate labor market and aggregate production function for the country of Bonavista. The short-run economic outcome resulting from the increase in production costs is known as. In the U.S., gross domestic product (GDP ) and gross national product (GNP) are close in value. Further, assume that all of the cotton is used, Consider a simple economy that produces only three products: tacos, earplugs, and toothbrushes. What benefits do cottage industries provide to local populations? The government places a modest minimum wage on this industry above the market clearing equilibrium wage. 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. a, The production possibilities curve illustrates the basic principle which states that: A. the production of more of any one good will in time require smaller and smaller sacrifices of other goods. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. The following table contains information on the economy's money supply, velocity of money, price level, and output. Question: 5. 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. [Solved] Consider a simple economy that produces o | SolutionInn Fill in the missing values in the following . Velocity and the quantity equation Consider a simple economy that produces only pens. 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? Suppose half the capital stock is suddenly destroyed(leaving the labor force unchanged). If th, Suppose that this year's velocity is 10, nominal GDP (PY) is $50 billion, and real GDP (Y) IS $10 billion. The velocity of money remained the same at 15. b. Solved 5. Velocity and the quantity equation Consider a - Chegg The following table contains information on the economy's money supply, velocity of money, price level, and output. You will pay $10,000 for labor costs and $12,000 for capital costs. Show calculations. For example, in 2017, the money supply was $360, the price of a pie was $9.00, and the economy produced 800 pies. 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. Find a new equilibrium. For example, in 2017, the money supply was $200, the price of a pen was $5.00, and the economy produced 400 pens. Last year, she purchased $7,000 worth of scrap metal. Suppose GDP in this country is $1,175 million. \hline \text { white, female } & 80 & 580 & 3,380 & & 4,930 \\ \end{array} Then use the income-expenditure(45 line) diagram to determine the equilibrium level of GDP. Assume Government expenditure has increased by 10. What do you suppose determines the sh, Suppose we have a two good economy that produces beef and soy. Suppose that John, April, and Tristan have two production plants for producing orange juice. {/eq}, {eq}Money \ supply \ grew \ = \ \dfrac{252 \ - \ 240}{240} \ \times \ 100 For example, in 2018, the money supply was $320, the price of a pie was $8.00, and the economy produced 600 pies. 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. b) Solve for the short-run cost function (, When the costs of a good are paid for by nonconsumers, _______ of the good is produced. All rights reserved. Explain the following terminologies in economics Spreading the overhead. decrease \\ Find short-run equilibrium output. 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. What do you suppose determines the, Suppose the marginal product of labor is 10 and the marginal product of capital is 8. The efficiency of ma3. which of the following are likely to increase the measured level of GDP and which are likely to reduce it? The following table contains information on the economy's money supply, velocity of money, price level, and output. Select one: a. Decr. Nominal GDP will be less than real GDP if the price level falls and is lower than the base year's prices. \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}\\ Yes. Capital and land are fixed factors while labor can move, Consider Australia as a small open economy. Gopher Excavators produces shovels in a small factory and sells the shovels in a perfectly competitive market. Find the equilibrium real interest rate. For example, in 2011, the money s, Suppose Home has 300 units of labor. The following table contains information on the economy's money supply, velocity of money, price level, and output. B. in the short run, the firm cannot add workers. 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. GDP = (50,000,000 * 1) + (10 * 10,000,000) = $150,000,000. 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. Fill in the missing values in the following . Consider a simple economy that produces only pies. Question: Consider a simple economy that produces only pens. In 1890, the typical American worked 60 hours per week. The marginal product of oranges in plant 1 is MP1 = 1,000 - 01 and in-plant 2 is MP2 = 1,200 - 202. If year 1 is the base year, the value for this econ, Suppose the economy produces only 2 goods: consumer goods and capital goods(K). c. costs and revenue. 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. Consider a simple economy that produces only pies. \\ 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. What is t, Both Kate and John own saltwater taffy factories. The firm pays a wage of $30 per units and pays a rental rate of capital $10 per unit. Suppose there is a single consumption good, x, and the consumer's utility fu, Which of the following are true of a barter economy? a. A) financial services B) electricity C) mobile phones D) mass transportation, 3. 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}. What is the optimal labor demand in the short run? Real GDP = 137.5 x 1 + 1350 x 30 = 40637.5, Billions of dollars Use a solow diagram to explain how the economy behaves ov. Get access to this video and our entire Q&A library, What Is Inflation Rate? Quantity of Money Price Level (Dollars) Quantity of Output (Cell phones) Nominal (Dolla: Year Velocity of Money increased 2017 7.20 500 2018 decreased 15 500 remained the same The mo rate of from 2017 to 2018. 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). 2000 (Base Year) 2009 {eq}Inflation \ rate \ from \ 2011 \ - \ 2012 \ = \ \dfrac{7.56 \ - \ 7.20}{7.2} \ \times \ 100 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. [Solved] Part- 3 Chapter- 15Aplia Homework: The Debate over Suppose in the short run a firm's production function is given by Q = L1/2K1/2, and K is fixed at K = 36. prices have decreased 2 percent between the base year and 2012. The country has a constant technology, population and capital stock (in other words, real GDP is constant throughout). a. Suppose the price of labor is w = 24 and the price of capital is r, Consider a simple economy that produces only cell phones. Consider a simple economy that produces only croquettes. What is the opportunity cost of apples? d. The adjustment to fair value on December 31, 2018, assuming that Eskew, Inc., elected to use the fair value option. John's factory has high fixed costs and low variable costs. Even if GDP included these types of production, why would it still be an imperfect measure of economic well-being? 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. The following table contains information on the economy's money supply, velocity of money, price level, and output. Assuming that the bonds were sold at 100 plus accrued interest on October 1, 2018, prepare the necessary journal entry. 4. Velocity and the quantity equation Consider a simple economy 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.