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Large gains from trade are more likely when the opportunity cost of production for the two countries are
The existence of an “underground economy” causes measured GDP to overestimate actual output.
Imagine that the world enters a new Ice Age and the new demand curve for leather jackets becomes P = 500 – Qd. By how much will consumer surplus change after the shift in demand:
Which of the following actions by the government is most likely to increase the money supply in an economy? (Hint: it is probably better to first answer Q3 of the problems)
a. What is the equilibrium level of GDP in this economy? b. Are inventories increasing or decreasing when GDP is 4,000? 2,000? By how much are they changing?
In the loanable funds market, what is IMPLIED by a vertical demand curve for the government?
Under the market clearing assumption, an excess supply of a certain good will a. Drive the price of the good up.b. Lead to a fall in the price of the good.
Use the following information to calculate GDP using both the expenditure approach and the factor payments approach.
a. Draw the Supply and the Demand curves and find the equilibrium price and quantity. b. Calculate consumer surplus, producer surplus, and the dead-weight loss.
Problem 7: The law of comparative advantage explains why a. Advanced nations will not trade with less-developed countries. b. An advance nation will not trade with other countries.
The Fed conducts an open market purchase of Treasury bills of $10 million. If the required reserve ratio is .10, what change in the money supply can be expected using the demand deposit multiplier?
Suppose the potential GDP is 30000 and it is reached when the level of employment in the economy equals 2000000. Suppose also the government wants to design a fiscal policy in order to attain full e
The classical model is a macroeconomic model that tries to explain both short-run and long run behavior of the economy.
Which of the following statements about the Consumer Price Index (CPI) is not true?
A real estate salesperson sells a house in 1999 that was built in 1990. How does this transaction get counted in the GDP statistics?
Compute the aggregate demand schedule for washing machines for an economy populated by B. Favre, T. Blair, P. Picasso, W. Shakespeare, A. Einstain, D. Trump and last but not the least M. Mouse. Then
The law of demand states that there is an inverse relationship between the quantity demanded and the price of a good, everything else held constant.
According to the Classical Dichotomy, the Classical Model is only valid for determining the nominal values of economic variables.
The study of the determining factors of the inflation rate would be studied primarily in:
Draw T-accounts for Wisconsin Bank, and Madison Credit Union depicting the changes in assets and liabilities for these two institutions.
Calculate the value of net exports for Macronia and Micronia. What do you notice about the relationship between the level of net exports for Macronia and Micronia?
What is the equilibrium level of employment per year and the equilibrium wage rate in Fantasyland?
Calculate consumer and producer surplus and the government's tax revenue as a result of this policy.
What is Wisconsin's opportunity cost of mussel removal? What is Wisconsin's opportunity cost of cleaning pollution?
Which of the followings terms describes an economy with a decrease in the CPI from one year to the next?