5 Steps To A 5 AP Microeconomics Macroeconomics 2008-2009 2nd Edition Eric Dodge - Solutions

Unlock the ultimate resource for mastering AP Microeconomics and Macroeconomics with our comprehensive solutions for "5 Steps To A 5 AP Microeconomics Macroeconomics 2008-2009 2nd Edition" by Eric Dodge. Access a wealth of online answers key, detailed solutions manual, and solutions PDF to guide you through solved problems. Explore our extensive test bank for chapter solutions and step-by-step answers, designed to facilitate your understanding. Whether you're using the instructor manual or the textbook, our platform offers questions and answers for free download, ensuring you have the tools you need to succeed.

Use the AD-AS model to illustrate and explain the impact of an increase in the general level of wages on the equilibrium price level and the level of real production and income in the economy, ceteris paribus.
Use the AD-AS model to illustrate and explain the stagflation phenomenon. Can stagflation be combated by expansionary monetary or fiscal policies?Explain.
What may give rise to a rightward shift of the aggregate supply curve?
What may give rise to a decrease in aggregate demand, illustrated by a leftward shift of the aggregate demand curve?
Explain why the long-run aggregate supply curve is usually regarded to be vertical.
What does the short-run aggregate supply curve illustrate? Why does it slope upward from left to right?
Distinguish between the "wealth effect" and"interest rate effect" of a change in the price level.
What does the aggregate demand curve illustrate?Why does it slope downward from left to right?
Use a diagram to illustrate the impact of an in- crease in investment on the equilibrium level of income. Comment on the relative sizes of the changes.
How does the interest rate affect the decision to invest?
Explain how changes in the instruments of monet- ary policy may be transmitted to the rest of the economy.
Define monetary policy.
Explain the impact of contractionary fiscal policy in the Keynesian model.
If C = R40 million, T = R280 million, G = R180 million, c = 0,875, t = 0,143 and Yt = R2 400 million, by approximately how much must government spending be raised to achieve full employment?
Explain how fiscal policy can be used to stimulate production and income in the economy. Comment on the possible side-effects of such a fiscal policy.
Define fiscal policy. How does it differ from monetary policy? Who is responsible for each?
What determines the size of the multiplier in a Keynesian model that includes both a government and a foreign sector?
How does the inclusion of the foreign sector affect the level of aggregate autonomous spending A, the multiplier a and the equilibrium income Yin the economy?
Discuss the important elements of the import function.
What do we mean when we say that exports are autonomous with respect to income Y?
What determines the demand for a country's exports?
Explain the difference between the multiplier without taxes and the multiplier with taxes and comment on their relative sizes.
Calculate the equilibrium level of income if C = R60 million, T = R280 million, G = R310 million, c = 0,75.
How do taxes affect the level of aggregate autonomous spending A, the multiplier a and the equilibrium income Yin the economy?
Distinguish between income and disposable income.
Use equations to derive the equilibrium level of income in a closed economy that has a government sector.
How does government spending affect the level of aggregate autonomous spending A, the multiplier a and the equilibrium income Yo in the economy?
Explain why government spending is regarded as autonomous in a Keynesian model with a government sector. What determines government spending?
Given the information in question 10, calculate the effect on equilibrium income if investment in- creases to 200.
In your own words, explain the multiplier effect of a change in investment. Illustrate it graphically as well.
Assume:C = 100 + 0,8Y I= 150 Calculate the equilibrium level of income. Also illustrate it graphically.
Explain how equilibrium is restored in the following cases:a. Aggregate spending is larger than aggregate income.b. Aggregate income is larger than aggregate spending.
Use an equation and a graph to identify and explain the meaning of the equilibrium level of income in the simple Keynesian model.
"Investment is assumed to be autonomous in the simple Keynesian model". Explain what is meant by this statement.
Explain how consumption can occur even when income is zero.
Illustrate the consumption function graphically and explain its main elements.
List the assumptions of the simple Keynesian model.
Explain what changes will take place in the following cases (all the variables refer to totals for the economy as a whole):a. Spending is equal to production and income.b. Spending is greater than production and income.c. Spending is less than production and income.
Define macroeconomic equilibrium.
Briefly explain the relationship between total production, total income, and total spending in the economy.
Use an example to explain the Lorenz curve and ex- plain how it is related to the Gini coefficient. Use the curve and the coefficient to illustrate a highly unequal distribution of wealth.
Name the two major accounts of the balance of payments and list the main elements of each account.
Define the balance of payments.
Explain what the consumer price index (CPI) represents.
Explain the difference between measurement at current prices and constant prices respectively.
Define the unemployment rate.
How does gross domestic expenditure (GOE) differ from GDP (and expenditure on GDP)?
What are the main elements of total spending in the economy?
What are the differences between GDP at market prices, GDP at basic prices, and GDP at factor cost? How are these three measures related to the three methods referred to in the previous question?
What are the three methods that may be used to estimate GDP? Why are there three methods and not only one?
Define gross domestic product (GDP) and discuss the main elements of the definition.
List the five macroeconomic objectives and discuss each objective briefly.
Use a diagram to explain how a central bank can try (in principle) to stabilise the external value of its currency (that is, explain managed floating).
Explain with the aid of graphs what the impact of the following would be on the R/$ exchange rate, ceteris paribus:a. More South Africans spend their holidays in the United States.b. Due to a new immigration policy, fewer South Africans emigrate to the United States.c. South African farmers export
Use diagrams to explain what would happen to the R/$ exchange rate, ceteris paribus, if:a. The demand for dollars increases.b. The supply of dollars increases.c. The demand for dollars decreases.d. The supply of dollars decreases.
Differentiate between an appreciation and a depre- ciation of the international value of a currency.
List the different elements of trade policy.
Use the opportunity cost principle to explain why in- ternational trade occurs.
Define the law of comparative (or relative) advantage.
Use an example to explain:a. Absolute advantageb. Relative advantage
What is meant by autarky? Explain why countries tend to trade with each other.
Define an open economy.
Distinguish between tax avoidance and tax evasion.
Differentiate between progressive, proportional, and regressive taxes and provide a South African ex- ample for each type.
Discuss the four elements of a good tax.
What are the three basic ways in which the govern- ment can fund its spending?
What are the main determinants of government spending in the economy? Also indicate the most important components of government spending in South Africa.
Define the budget deficit and explain how it is re- lated to the public debt.
Distinguish between expansionary and contraction- ary fiscal policy.
What are the main elements of fiscal policy and what is the main instrument of fiscal policy?
Define nationalisation and privatisation.
Name the four sectors that constitute the South African government and give an example of each.
Define monetary policy and indicate the aims of monetary policy.
Briefly discuss the main functions of the South African Reserve Bank (SARB).
Use an example to explain how money is created.
Differentiate between a stock variable and a flow variable and give an example of each.
What is a bond? Explain, in your own words, the inverse relationship between interest rates and bond prices.
What type of relationship exists between the quantity of money demanded and the interest rate?
Using a diagram, show the relationship between:a. The quantity of active balances demanded and the interest rate (for a given level of income).b. The quantity of passive balances demanded and the interest rate.c. The total quantity of money demanded and the interest rate.
Explain the two basic motives for holding money.
What is the "demand for money" and what are the determinants of the "demand for money"?
Define the different measures of money in South Africa. How are they linked to the functions of money?
Define money and discuss the three basic functions of money. What is the essential function of money?Explain.
What are the five main objectives of macroeconomic policy?
Explain the main objectives of macroeconomic theory.
Provide an example to explain the difference between nominal and real values.
Use a diagram to explain the relationship between households and firms in the economy.
List the four factors of production and provide an example of each.
List the three main flows in the economy and explain how they are related.
What are the three main economic questions?
Explain the difference between macroeconomics and microeconomics and provide an example of what is studied under each topic.
Define (and explain) the following terms:economics, scarcity, and opportunity cost.
When a large increase in aggregate demand has an even greater increase in real GDP, economists refer to this as(A) the balanced budget multiplier.(B) the money multiplier.(C) the foreign substitution effect.(D) the wealth effect.(E) the spending multiplier.
An import quota on foreign automobiles is expected to(A) increase domestic efficiency, and protect domestic producers at the expense of foreign producers.(B) decrease the price of automobiles, and protect domestic consumers at the expense of foreign producers.(C) increase the price of automobiles,
Which component of a nation’s balance of payments recognizes the purchase and sale of real and financial assets between nations?(A) The capital account.(B) The official reserves account.(C) The current account.(D) The trade deficit account.(E) The trade surplus account.
If in a given year the government collects more money in net taxes than it spends, there would exist(A) a current account deficit.(B) a budget surplus.(C) a trade surplus.(D) a budget deficit.(E) a trade deficit.
U.S. dollars and the European Union’s (EU)euro are exchanged in global currency markets.Which of the following are true?I. If inflation is high in the EU and the price level in the United States is stable, the value of the dollar appreciates.II. If the Fed increases the money supply, the value of
Suppose the President plans to cut taxes for consumers and also plans to increase spending on the military. How does this affect real GDP and the price level?(A) GDP increases and the price level decreases.(B) GDP decreases and the price level increases.(C) GDP stays the same and the price level
As the Japanese economy expands, in what ways do U.S. net exports, the values of the dollar, and yen change?
Suppose the economy is in long-run equilibrium when temporary expansionary supply shock is felt in the economy. This changes the short-run Phillips curve, the short-run unemployment rate, and the long-run unemployment rate in which of the following ways?

Showing 500 - 600 of 5072

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last

5 Steps To A 5 AP Microeconomics Macroeconomics 2008-2009 2nd Edition Eric Dodge - Solutions

Step by Step Answers