Q: Suppose that work hours in New Zombie are 200 in year 1
Suppose that work hours in New Zombie are 200 in year 1 and productivity is $8 per hour worked. What is New Zombie’s real GDP? If work hours increase to 210 in year 2 and productivity rises to $10 per...
See AnswerQ: The per-unit cost of an item is its average total
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $100,000 to develop and only $.50 per unit to deliver to each cell phone...
See AnswerQ: Suppose the full-employment level of real output (Q)
Suppose the full-employment level of real output (Q) for a hypothetical economy is $250 and the price level (P) initially is 100. Use the short-run aggregate supply schedules below to answer the quest...
See AnswerQ: Why are changes in inventories included as part of investment spending?
Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2014. How would this affect the size of gross private domestic investment and...
See AnswerQ: Suppose that AD and AS intersect at an output level that is
Suppose that AD and AS intersect at an output level that is higher than the full-employment output level. After the economy adjusts back to equilibrium in the long run, the price level will be _______...
See AnswerQ: Suppose that an economy begins in long-run equilibrium before the
Suppose that an economy begins in long-run equilibrium before the price level and real GDP both decline simultaneously. If those changes were caused by only one curve shifting, then those changes are...
See AnswerQ: Identify the two descriptions below as being the result of either cost
Identify the two descriptions below as being the result of either cost-push inflation or demand-pull inflation. a. Real GDP is below the full-employment level and prices have risen recently. b. Real...
See AnswerQ: Use graphical analysis to show how each of the following would affect
Use graphical analysis to show how each of the following would affect the economy first in the short run and then in the long run. Assume that the United States is initially operating at its full-empl...
See AnswerQ: Between 1990 and 2009, the U.S. price level
Between 1990 and 2009, the U.S. price level rose by about 64 percent while real output increased by about 62 percent. Use the aggregate demand–aggregate supply model to illustrate these outcomes graph...
See AnswerQ: Assume there is a particular short-run aggregate supply curve for
Assume there is a particular short-run aggregate supply curve for an economy and the curve is relevant for -several years. Use the AD-AS analysis to show graphically why higher rates of inflation over...
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