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Money Supply and Velocity

If the government increases the money supply by 50%, and the velocity of money and real GDP remain constant a) what percentage will the inflation tax be? b) what percentage increase or decrease will the value of real cash balances be? Please show steps and reasoning.

What is the nominal GDP?

Number 1. Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2006 $2 5 $4 10 2007 $4 10 $8 5 The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the nominal GDP in 20

Analyzing the Purchasing Power of Workers

The New York Times cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000. a. By what percentage did the price of a newspaper rise? b. By what percentage did the wage rise? c. In each year, how many minutes does a worker have to work to earn enough to buy a news

Managerial Economics

Use the following data for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers the firm will employ to maximize profits. Number of Workers (L) MRPL MRCL 1 $200 $30 2 150

Gross Domestic Product

The GDP is the value of all final goods and services produced: within the nations boundaries. by domestically owned companies. by citizens of the country. by domestically controlled companies.


THE RECESSION OF 2001â?"WHICH COMPONENT OF AD DECLINED THE MOST? Use the interactive feature of the Bureau of Economic Analysis Web site,, to access the National Income and Product Account Tables. Select Interactive Data Tables, which is listed under Publications. On that page, select National Income and Product Acc

Use the GDP data from 1929 to 2008 collected in the first part of this assessment (Assignment 4 Data Collection) to match the following GDP numbers with the corresponding year. (Points : 10) : 103.6 1 : 1981 : 86.1 2 : 1938 : 101.4 3 : 1983 : 3536.7 4 : 1940 : 3128.4 5 : 1929

Use the GDP data from 1929 to 2008 collected in the first part of this assessment (Assignment 4 Data Collection) to match the following GDP numbers with the corresponding year. (Points : 10) : 103.6 1 : 1981 : 86.1 2 : 1938 : 101.4 3 : 1983 : 3536.7 4 : 1940 : 3128.4 5

Why charge on a marginal basis?

Please comment: If a fixed number of industrial polution permits are marketable, then we should just sell the right to smoke to the highest bidders rather than ban smoking outright in many cities, towns, business outlets, restaurants, and bars. It would reduce the economic losses and make the market more efficient.

Calculate the range for beauty lotion

Beauty lotion is a skin-moisturizing product that contantains rich oils, blended especialy for overly dry or neglected skin. The product is sold in 5-once bottles by a wide range of retail outlets. In an on going review of product quality and consistency, the manufacturer of Beauty Lotion found a sample average product volume of

Real GDP rose by what percent?

Show calculation and explain answer Suppose nominal GDP in 2005 was $14 trillion and in 2006 it was $15 trillion. The general price index in 2005 was 100 and in 2006 it was 103. Between 2005 and 2006 real GDP rose by what percent?

Real Wage Growth and Nominal Wage Growth

Suppose you receive a 4 percent increase in your nominal wage. Over the year, inflation runs about 7 percent. Which of the following statements is TRUE? 1. Your real wage increased 2. Both the nominal and real wages increased 3. Both your nominal and teal wages decreased 4. Although your nominal wage fell, your real

Determine the unknown value

For the cash flow shown below, if the interest rate is 10% per year, what is the unknown value? Year 0 1 2 3 ---------------------------------------------------- Cash Flow $-2,000 $1,000 X $1,200

Present Worth of Savings

To improve crack detection in aircrafts, the U.S. Air Force combined ultrasonic inspection procedures with laser heating to identify fatigue cracks. Early detection of cracks may reduce repair costs by as much as $200,000 per year. If the savings start now and continue through year 5, what is the present worth of these savings a

Present Value for Engineering Economy

How much money could Tesla Inc. a maker of superconducting magnetic energy storage systems, afford to spend now on new equipment in lieu of spending $85,000 five years from now, if the company's rate of return is 18% per year.

Engineering Economy

A married couple is planning to buy a new sport utility vehicle (SUV) 5 years from now. They expect the SUV to cost $32,000 at the time of purchase. (a) If they want to have half of the cost for a down payment, how much must they save each year (starting at the end of the current year) if they can earn 10% per year on their sav

How consumer demand responds to tax cuts

Suppose you notice that a $7 billion tax-cut was accompanied by a $9 billion increase in consumer spending in the same year. How would you explain why consumer spending increased by more than the tax-cut?

HHI Index

Suppose there are 12 firms in an industry. The percentage of total sales is given in the following table: Firm Percentage of total sales 1 16 2 14 3 12 4 12 5 10 6 8 7 6 8 6 9 5 10 4 11 4 12 3 Calcula

Total Profit and Price Charges

Consolidated Salt Company sells table salt to both retail grocery chains and commercial users (e.g., bakeries, snack food makers, etc.). The demand function for each of these markets is: Retail grocery chains: P1 = 180 - 8Q1 Commercial users: P2 = 100 - 4Q2 where P1 and P2 are the prices charged and Q1 and Q2 are the quan

Break-even income: Example questions

Show the consumption and saving schedules graphically. Determine the APC and APS for each level of income. Now, determine the MPC and MPS for each change in the income level. Locate the break-even point. How is it possible for households to dissave low income levels? If the proportion of total income that is consumed decreases

Effects of the appreciation of the Canadian dollar against the US dollars

Please advise if my answers are correct. I think I am weak in part d. Question In 2003 to 2004, the Canadian dollar appreciated against the US dollar. Explain the effects of this appreciation on a. Canadian importers of goods from the US. (2 marks) b. Canadian firms that sell commodities to US buyers. (2 marks)

Managerial Economics

Igh grade. The standard CDs are used primarily in computer drives and are designed for data storage rather than accurate sound reproduction. The company only recently began producing the higher quality, high grade model to enter the lucrative music recording market. Since the new product was introduced, profits have seen only a

Calculate the Size of Rebate that Maximizes Total Profits

I have a website where I offer cash rebates for buying stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate. For that particular sale I will receive a commission of say, $25, so my net revenue from that offer is $15. The goal is to offer a rebate that is large enough that lots of people are in

Total Cost

Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y2 and C(Y) = 10Y2. What level of Y will yield the maximum net benefits? Show your work. a. 75/36 b. 75/18 c. 50/18 d. 100/36

Calculating Marginal Revenue Product: Acquiring Resources

Using the information in the following table, calculate the marginal revenue product (MRP = MPP x MR) (see attachment for table). MPP = change in output/change in resource MR = change in revenue/change in quantity The number of units of resources the firm will want to acquire? Please see

Macroeconomics Multiplier

The economy is in equilibrium at $9.5 trillion dollars, the MPC is .70, and the simple government multiplier is operative. If consumption is raised by $300 billion dollars, what is the maximum change in Real GDP and the new equilibrium point?

Standard Costs and Balanced Scorecard

Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2008. Costs and Production Data Actual Standard Raw materials unit cost $2.25 $2.00 Raw materials units used 10,600 10,000 Direct labor payroll $122,400 $120,000 Direct labor hours worked

Marginal propensity

A firm purchases a new computer system for $1M. If the marginal propensity to consume is 0.8, the final change in national income will be a. $800,000 b. $1M c. $1.2M d. $4M e. $5M Which answer is correct, can you explain