Economics

The equilibrium quantity in a perfectly competitive market is determin

The equilibrium quantity in a perfectly competitive market is determined: A) at the point of intersection of the demand curve and the quantity axis. B) at the point of intersection of the demand and supply curves. C) at the point of intersection of the supply curve and the quantity axis. D) at the point of […]

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Date: September 2nd, 2020

Total planned real expenditures measured along the aggregate demand cu

Total planned real expenditures measured along the aggregate demand curve are made up of A) consumption spending, factor payments, investment spending, and net export spending. B) consumption spending, income, government spending, and net export spending. C) consumption spending, saving, investment spending, and government spending. D) consumption spending, investment spending, government spending, and net export spending. […]

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Date: September 2nd, 2020

What is discretionary fiscal policy and what is its purpose? What wil

What is discretionary fiscal policy and what is its purpose? What will be an ideal response?   ANSWER Discretionary fiscal policy is the deliberate changing of government spending and/or taxes. Its purpose is to move the economy toward full employment with price stability more rapidly than it would if left on its own.

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Date: September 2nd, 2020

Consider two economies: Barylia and Lithasia. The GDP per capita in Li

Consider two economies: Barylia and Lithasia. The GDP per capita in Lithasia is $6,000 while the GDP per capita in Barylia is $12,000. Both countries grow exponentially at an annual rate of 10%. How will their GDPs vary over the next year? Is there any limitation of comparing the absolute levels of GDP per capita […]

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Date: September 2nd, 2020

Cigarettes served as money in some prisoner of war (POW) camps during

Cigarettes served as money in some prisoner of war (POW) camps during World War II. Given this, we would expect to observe A) no one ever smoking a cigarette. B) prices of other goods expressed in terms of cigarettes. C) only government-issued cigarettes being accepted as money. D) people usually resorting to barter rather than […]

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Date: September 2nd, 2020