Question : | Use the figure below to answer the following question: Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. If the initial demand and supply curves are D0 and S0, equilibrium price and quantity will be: | | | Student Answer: | | 0F and 0C respectively. | | | | 0G and 0B respectively. | | | | 0F and 0A respectively. | | | | 0E and 0B respectively. | | | | Points Received: | 5 of 5
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decreases saving. 3. Find an incorrect statement. (a) The short run aggregate supply (SAS) curve slopes upward. (b) With an inflationary gap, money wage rate begins to fall and the SAS curve shifts rightward. (c) A leftward shift in the short run aggregate supply (SAS) curve causes stagflation. (d) In the long run, the quantity of real GDP is equal to potential GDP. 4. Find an incorrect statement. (a) The short run aggregate supply (SAS) curve slopes upward. (b) With an inflationary gap, money
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.. rise in the wage rate increases the number of people in the economy who want to work -demand curve: how many workers firms will want to hire at various real wage rates downward sloping: as the wage rate increases, each firm in the economy will find to maximize profit it should employ fewer workers than before a rise in the wage rate will decrease the quantity of labor demanded in the economy -demand curve shifts: the capital stock, the availability of resources, taxes on goods sold -supply
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Macroeconomics:________________________________________ Macroeconomics is the study of aggregates or averages covering the entire economy, such as total employment, national income, national output, total investment, total consumption, total savings, aggregate supply, aggregate demand, and general price level, wage level, and cost structure. In other words, it is aggregative economics which examines the interrelations among the various aggregates,
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Solutions to Quick Quizzes Chapter 1 1. There are many possible answers. 2. There are many possible answers. 3. The three principles that describe how the economy as a whole works are: (1) a country’s standard of living depends on its ability to produce goods and services; (2) prices rise when the government prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment. A country’s standard of living depends largely on the productivity of its workers, which
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Demand Estimation Sierra McDaniel ECO 550: Managerial Economics Dr. Moses Pologne 7/24/2014 Option 1: QD=-5200-42P+20PX+5.2I+.20A+.25M In economics, “a variable is an event, idea, value, or some other object or category that a researcher or business can measure” (Basu, 2014, para. 1). There are two types of variables: dependent and independent. Dependent variables are swayed by other factors, but independent variables stand alone and aren’t affected by other variables (Basu, 2014). For this
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NEW YORK UNIVERSITY Stern School of Business Economics of Global Business ANSWER KEY Version “A” Fall 2014/Macro Quiz Professor Joe Foudy Instructions 1. Read each question carefully. 2. Answer all questions. Take an educated guess if you are not sure. 3. Don’t worry and don’t panic. The test is curved and just do the best you can. 4. Please do not unstaple the exam except for scrap paper on last page. 5. Sign the Honor Pledge below or the exam will not
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directly, not inversely. Dependent Variable: A variable whose value is determined by the model. Independent Variable: A variable whose value is fixed external to the model. Complementary Good: A good whose demand curve shifts along with that of another good. Substitute Good: A good whose demand curve shifts inversely with that of another good. Normal Profit: The amount of profit just sufficient to keep resources in the industry. Included as part of cost. Coase’s Theorem: The exchange solution to
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brief as under. 1. UNEMPLOYMENT: The classical economists explained unemployment using traditional partial equilibrium supply and demand analysis. According to them unemployment results when there is an excess supply of labour at a particular higher wage level. By accepting lower wage, the unemployed workers will go back to their jobs and the equilibrium between demand for labour and supply of labour will be established in the labour market in the long period. This equilibrium in the economy is always
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Fall 2012 CHAPTER 1: THE CHALLENGE OF ECONOMICS 1 CHAPTER 1: THE CHALLENGE OF ECONOMICS Definitions and Questions All economic questions and problems arise because human wants exceed the resources available to satisfy them. Scarcity: - The condition that arises because the available resources are insufficient to satisfy wants. o Our resources are limited but our wants are unlimited. - Scarcity: Lack of enough resources to satisfy all desired uses of those resources The Central Problem of
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