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The time between when income taxes are cut and when consumption spending increases is an example of:
A) the outside lag of macroeconomic policy.
B) the inside lag of macroeconomic policy.
C) the outside lag of monetary policy.
D) the inside lag of fiscal policy.
An economy with a trade surplus must also have:
A) a trade deficit.
B) a budget surplus.
C) positive net capital outflows.
D) positive net capital inflows.
Assume consumer equilibrium (budget curve and indifference curves). Draw 3 separate scenarios: (1) the price of good x decreases; (2) the price of good y increases; and (3) the budget (income increases). In each scenario, explain the effect on the gr..
An article in the Chinese economy in 2012 notes that business inventories had been increasing. As a result, the author argued: "China's growth rate will not be as robust as it has been over the last few years, as the economy needs to work off this ex..
Consider two firms, located at each end of a street of length 1. There are customers uniformly distributed along this street. Customers incur transportation costs TC = 2x2, where x is the distance they need to travel in order to purchase the product...
The long-term trend of a time series in the decomposition model is estimated using
Supply curves are usually assumed to slope upward because
The following is information from the national income accounts for a hypothetical country: Net exports? Government taxes minus transfers? Disposable personal income? Personal saving?
The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds.
Assume that in Babilonia no one is born or dies, but just spend their life either out of the labor force, or in the labor force and unemployed, or employed. Assume crucially that these percentages are unchanged, year after year. What are the steady-s..
Suppose you are the manager of a California winery. How would you expect the following events to affect the price you receive for a bottle of wine? Explain your answers The price of comparable French wine decreases. The unemployment rate in the Unite..
All of the following are examples of automatic stabilizers except :
What is the level of the M1 stock of money? Suppose the public’s holding of currency increases to $100 while, at the same time, the level of deposits remain constant at $200. What is the value of the new money multiplier (m’)?
Describe the four basic types of market structures Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in your own words, Identify..
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