New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
macroeconomic theory

Krugmans Macroeconomics For Ap 1st Edition Margaret Ray, David A Anderson - Solutions

The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis.
A more complex circular-flow diagram for the economy of Macronia is shown at right.a. What is the value of GDP in Macronia?b.What is the value of net exports?c. What is the value of disposable income?d.Does the total flow of money out of households—the sum of taxes paid, consumer spending, and
At right is a simplified circular-flow diagram for the economy of Micronia.a. What is the value of GDP in Micronia?b.What is the value of net exports?c. What is the value of disposable income?d.Does the total flow of money out of households—the sum of taxes paid and consumer spending—equal the
The accompanying table contains the values of two price indexes for the years 2004, 2005, and 2006: the GDP deflator and the CPI. For each price index, calculate the inflation rate from 2004 to 2005 and from 2005 to 2006.
Suppose the year 2000 is the base year for a price index. Between 2000 and 2020 prices double and at the same time your nominal income increases from $40,000 to $80,000.a. What is the value of the price index in 2000?b. What is the value of the price index in 2020?c. What is the percentage increase
If your wage doubles at the same time as the consumer price index goes from 100 to 300, your real wagea. doubles.b. falls.c. increases.d. stays the same.e. cannot be determined.
The value of a price index in the base year isa. 0.b. 100.c. 200.d. the inflation rate.e. the average cost of a market basket of goods.
Which of the following is true of the CPI?I. It is the most common measure of the price level.II. It measures the price of a typical market basket of goods.III. It currently uses a base period of 1982–1984.a. I onlyb. II onlyc. III onlyd. I and II onlye. I, II, and III
If the consumer price index increases from 80 to 120 from one year to the next, the inflation rate over that time period wasa. 20%b. 40%c. 50%d. 80%e. 120%
If the cost of a market basket of goods increases from $100 in year 1 to $108 in year 2, the consumer price index in year 2 equals if year 1 is the base year.a. 8b. 10c. 100d. 108e. 110
The consumer price index in the United States (base period 1982–1984) was 201.6 in 2006 and 207.3 in 2007. Calculate the inflation rate from 2006 to 2007.
For each of the following events, explain how the use of a 10-year-old market basket would bias measurements of price changes over the past decade.a. A typical family owns more cars than it would have a decade ago. Over that time, the average price of a car has increased more than the average
Consider Table 15.1 but suppose that the market basket is composed of 100 oranges, 50 grapefruit, and 200 lemons. How does this change the pre-frost and post -frost consumer price indexes? Explain. Generalize your answer to explain how the construction of the market basket affects the CPI.
You borrow $1,000 for one year at 5% interest to buy a couch.Although you did not anticipate any inflation, there is unexpected inflation of 5% over the life of your loan.a. What was the real interest rate on your loan?b. Explain how you gained from the inflation.c. Who lost as a result of the
In the following examples, is inflation creating winners and losers at no net cost to the economy or is it imposing a net cost on the economy? Explain. If inflation is imposing a net cost on the economy, which type of cost is involved?a. When inflation is expected to be high, workers get paid more
Changing the listed price when inflation leads to a price increase is an example of which type of cost?a. price levelb. shoe-leatherc. menud. unit-of-accounte. monetary
Because dollars are used as the basis for contracts, inflation leads to which type of cost?a. price levelb. shoe-leatherc. menud. unit-of-accounte. monetary
If inflation causes people to frequently convert their dollars into other assets, the economy experiences what type of cost?a. price levelb. shoe-leatherc. menud. unit-of-accounte. monetary
If your nominal wage doubles at the same time as prices double, your real wage willa. increase.b. decreasec. not change.d. double.e. be impossible to determine.
Which of the following is true regarding prices in an economy?I. An increase in the price level is called inflation.II. The level of prices doesn’t matter.III. The rate of change in prices matters.a. I onlyb. II onlyc. III onlyd. II and III onlye. I, II, and III
Most people in the United States have grown accustomed to a modest inflation rate of around 2-3%. Who would gain and who would lose if inflation came to a complete stop for several years? Explain.
The widespread use of technology has revolutionized the banking industry, making it much easier for customers to access and manage their assets. Does this mean that the shoe -leather costs of inflation are higher or lower than they used to be? Explain.
In each of the following situations, what type of unemployment is Melanie facing? Explain.a. After completing a complex programming project, Melanie is laid off. Her prospects for a new job requiring similar skills are good, and she has signed up with a programmer placement service. She has passed
a. Define the natural rate of unemployment.b. The natural rate of unemployment is made up of which of the types of unemployment?c. Explain how cyclical unemployment relates to the natural rate of unemployment.d. List three factors that can lead to a change in the natural rate of unemployment.
Which of the following can affect the natural rate of unemployment in an economy over time?a. labor force characteristics such as age and work experienceb. the existence of labor unionsc. advances in technologies that help workers find jobsd. government job training programse. all of the above
Which of the following is true of the natural rate of unemployment?I. It includes frictional unemployment.II. It includes structural unemployment.III. It is equal to 0%.a. I onlyb. II onlyc. III onlyd. I and IIe. I, II, and III
A person who is unemployed because of a mismatch between the quantity of labor supplied and the quantity of labor demanded is experiencing what type of unemployment?a. frictionalb. structuralc. cyclicald. naturale. none of the above
What type of unemployment is created by a recession?a. frictionalb. structuralc. cyclicald. naturale. none of the above
A person who moved to a new state and took two months to find a new job experienced which type of unemployment?a. frictionalb. structuralc. cyclicald. naturale. none of the above
Suppose the United States dramatically increases benefits for unemployed workers. Explain what will happen to the natural rate of unemployment.
Why does collective bargaining have the same general effect on unemployment as a minimum wage? Illustrate your answer with a diagram.
Explain the following.a. Frictional unemployment always exists.b. Frictional unemployment accounts for a larger share of total unemployment when the unemployment rate is low.
What is the labor market classification of each of the following individuals? Be as specific as possible, and explain your answer.a. Julie has a graduate degree in mechanical engineering. She works full-time mowing lawns.b. Jeff was laid off from his previous job. He would very much like to work at
Use the data provided below to calculate each of the following.Show how you calculate each.a. the size of the labor forceb. the labor force participation ratec. the unemployment rate Population age 16 and older = 12 million Employment = 5 million Unemployment = 1 million
The unemployment problem in an economy may be understated by the unemployment rate due toa. people lying about seeking a job.b. discouraged workers.c. job candidates with one offer but waiting for more.d. overemployed workers.e. none of the above.
What is the unemployment rate?a. 70%b. 50%c. 20%d. 10%e. 5%
How many people are unemployed?a. 10,000b. 20,000c. 30,000d. 100,000e. 110,000
What is the labor force participation rate?a. 70%b. 50%c. 20%
To be considered unemployed, a person must I. not be working.II. be actively seeking a job.III. be available for work.a. I onlyb. II onlyc. III onlyd. II and IIIe. I, II, and III
Which of the following are consistent with the observed relationship between growth in real GDP and changes in the unemployment rate? Which are not?a. A rise in the unemployment rate accompanies a fall in real GDP.b. An exceptionally strong business recovery is associated with a greater percentage
In which of the following cases would the worker be counted as unemployed? Explain.a. Rosa, an older worker, has been laid off and gave up looking for work months ago.b. Anthony, a schoolteacher, is not working during his three-month summer break.c. Grace, an investment banker, has been laid off
Suppose that employment websites enable job -seekers to find suitable jobs more quickly. What effect will this have on the unemployment rate over time? Also suppose that these websites encourage job -seekers who had given up their searches to begin looking again. What effect will this have on the
Use the information in the table below to answer the following questions.a. Calculate the percent increase in nominal GDP between 2005 and 2010 for each country.b. What happened to the price level in each country between 2005 and 2010?c. Calculate real GDP in each country in 2010, using 2005 as the
The economy of Britannica produces three goods: computers, DVDs, and pizza. The accompanying table shows the prices and output of the three goods for the years 2008, 2009, and 2010.a. What is the percent change in computer production from 2008 to 2009?b. What is the percent change in the price of
Refer to the 2009 data in the table below.Which of the following must be true?I. Residents of Japan were worse off than residents of the United States or the European Union.II. The European Union had a higher nominal GDP per capita than the United States.III. The European Union had a larger economy
Real GDP per capita is an imperfect measure of the quality of life in part because ita. includes the value of leisure time.b. excludes expenditures on education.c. includes expenditures on natural disasters.d. excludes expenditures on entertainment.e. includes the value of housework.
Use the information provided in the table below for an economy that produces only apples and oranges. Assume year 1 is the base year.
The best measure for comparing a country’s aggregate output over time isa. nominal GDP.b. real GDP.c. nominal GDP per capita.d. real GDP per capita.e. average GDP per capita.
Which of the following is true of real GDP?I. It is adjusted for changes in prices.II. It is always equal to nominal GDP.III. It increases whenever aggregate output increases.a. I onlyb. II onlyc. III onlyd. I and IIIe. I, II, and III
From 1990 to 2000 the price of housing rose dramatically.What are the implications of this in deciding whether to use 1990 or 2000 as the base year in calculating 2010 real GDP?
Assume there are only two goods in the economy, french fries and onion rings. In 2009, 1,000,000 servings of french fries were sold for $0.40 each and 800,000 servings of onion rings were sold for $0.60 each. From 2009 to 2010, the price of french fries rose to $0.50 and the servings sold fell to
Draw a correctly labeled circular-flow diagram showing the flows of funds between the markets for goods and services and the factor markets. Add the government to your diagram, and show how money leaks out of the economy to the government and how money is injected back into the economy by the
Will each of the following transactions be included in GDP for the United States? Explain why or why not.a. Coca-Cola builds a new bottling plant in the United States.b. Delta sells one of its existing airplanes to Korean Air.c. Ms. Moneybags buys an existing share of Disney stock.d. A California
Which of the following components makes up the largest percentage of GDP measured by aggregate spending?a. consumer spendingb. investment spendingc. government purchases of goods and servicesd. exportse. imports
Which of the following is not included in GDP?a. capital goods such as machineryb. importsc. the value of domestically produced servicesd. government purchases of goods and servicese. the construction of structures
Which of the following is included in GDP?a. changes to inventoriesb. intermediate goodsc. used goodsd. financial assets (stocks and bonds)e. foreign-produced goods
GDP is equal toa. the total value of all goods and services produced in an economy during a given period.b. C + I + G + IM.c. the total value of intermediate goods plus final goods.d. the total income received by producers of final goods and services.e. none of the above.
Which of the following is true? The simple circular-flow diagram I. includes only the product markets.II. includes only the factor markets.III. is a simplified representation of the macroeconomy.a. I onlyb. II onlyc. III onlyd. I and III onlye. none of the above
The waters off the north Atlantic coast were once teeming with fish. Now, due to overfishing by the commercial fishing industry, the stocks of fish are seriously depleted. In 1991, the National Marine Fishery Service of the U.S. government implemented a quota to allow fish stocks to recover. The
For the last 70 years, the U.S. government has used price supports to provide income assistance to U.S. farmers. At times the government has used price floors, which it maintains by buying up the surplus farm products. At other times, it has used target prices, giving the farmer an amount equal to
Until recently, the standard number of hours worked per week for a full-time job in France was 39 hours, similar to in the United States. But in response to social unrest over high levels of involuntary unemployment, the French government instituted a 35-hour workweek—a worker could not work more
As noted in the text, European governments tend to make greater use of price controls than does the U.S. government.For example, the French government sets minimum starting yearly wages for new hires who have completed le bac, certification roughly equivalent to a high school diploma. The demand
Suppose the U.S. government decides that the incomes of dairy farmers should be maintained at a level that allows the traditional family dairy farm to survive. It therefore implements a price floor of $1 per pint by buying surplus milk until the market price is $1 per pint. Use the accompanying
In the late eighteenth century, the price of bread in New York City was controlled, set at a predetermined price above the market price.a. Draw a diagram showing the effect of the policy. Did the policy act as a price ceiling or a price floor?b.What kinds of inefficiencies were likely to have
Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and are therefore offered at the same rent. To address the plight of residents who may be unable to pay the market rent, an income supplement
Draw the appropriate curve in each of the following cases. Is it like or unlike the curves you have seen so far? Explain.a. the demand for cardiac bypass surgery, given that the government pays the full cost for any patient b.the demand for elective cosmetic plastic surgery, given that the patient
Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his “Blue Period.” Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the United States.a. Draw a supply curve for Picasso Blue
Use a diagram to illustrate how each of the following events affects the equilibrium price and quantity of pizza.a. The price of mozzarella cheese rises.b.The health hazards of hamburgers are widely publicized.c. The price of tomato sauce falls.d.The incomes of consumers rise and pizza is an
The small town of Middling experiences a sudden doubling of the birth rate. After three years, the birth rate returns to normal. Use a diagram to illustrate the effect of these events on the following:a. the market for an hour of babysitting services in Middling today b.the market for an hour of
Will Shakespeare is a struggling playwright in sixteenthcentury London. As the price he receives for writing a play increases, he is willing to write more plays. For the following situations, use a diagram to illustrate how each event affects the equilibrium price and quantity in the market for
After several years of decline, the market for handmade acoustic guitars is making a comeback. These guitars are usually made in small workshops employing relatively few highly skilled luthiers. Assess the impact on the equilibrium price and quantity of handmade acoustic guitars as a result of each
In Rolling Stone magazine, several fans and rock stars, including Pearl Jam, were bemoaning the high price of concert tickets.One superstar argued, “It just isn’t worth $75 to see me play.No one should have to pay that much to go to a concert.” Assume this star sold out arenas around the
Find the flaws in reasoning in the following statements, paying particular attention to the distinction between changes in and movements along the supply and demand curves.Draw a diagram to illustrate what actually happens in each situation.a. “A technological innovation that lowers the cost of
Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity of each of the following events on the designated market.a. the market for newspapers in your town Case 1: The salaries of journalists go up.Case 2: There is a big news event in
The market for many goods changes in predictable ways according to the time of year, in response to events such as holidays, vacation times, seasonal changes in production, and so on. Using supply and demand, explain the change in price in each of the following cases. Note that supply and demand
In a supply and demand diagram, draw the change in demand for hamburgers in your hometown due to the following events.In each case show the effect on equilibrium price and quantity.a. The price of tacos increases.b.All hamburger sellers raise the price of their french fries.c. Income falls in town.
A survey indicated that chocolate ice cream is America’s favorite ice-cream flavor. For each of the following, indicate the possible effects on the demand and/or supply, equilibrium price, and equilibrium quantity of chocolate ice cream.a. A severe drought in the Midwest causes dairy farmers to
Draw a correctly labeled graph of the market for taxicab rides.On the graph, draw and label a vertical line showing the level of an effective quota. Label the demand price, the supply price, and the quota rent.
Draw a correctly labeled graph illustrating hypothetical supply and demand curves for the U.S. automobile market. Label the equilibrium price and quantity. Suppose the government institutes a quota to limit automobile production. Draw a vertical line labeled “Qineffective” to show the level of
Which of the following would decrease the effect of a quota on a market? A(n)a. decrease in demandb. increase in supplyc. increase in demandd. price ceiling above the equilibrium pricee. none of the above
Quotas lead to which of the following?I. inefficiency due to missed opportunities II. incentives to evade or break the law III. a surplus in the marketa. Ib. IIc. IIId. I and IIe. I, II, and III
If the government established a quota of 1,000 in this market, the quota rent would bea. $2.b. $4.c. $6.d. $8.e. more than $8.
If the government established a quota of 1,000 in this market, the supply price would bea. less than $4.b. $4.c. $6.d. $8.e. more than $8.
If the government established a quota of 1,000 in this market, the demand price would bea. less than $4.b. $4.c. $6.d. $8.e. more than $8.0 Price Quantity$8 64 1,000 1,800 2,600 DS E
Again replicate the graph from Figure 9.1. Suppose that the quota is 8 million rides and that demand decreases due to a decline in tourism. Show on your graph the smallest parallel leftward shift in demand that would result in the quota no longer having an effect on the market.
Suppose that the supply and demand for taxi rides is given by Figure 9.1 and a quota is set at 6 million rides. Replicate the graph from Figure 9.1, and identify each of the following on your graph:a. the price of a rideb. the quota rentc. the deadweight loss resulting from the quota Suppose the
Draw a correctly labeled graph of a housing market in equilibrium.On your graph, illustrate an effective legal limit (ceiling) on rent.Identify the quantity of housing demanded, the quantity of housing supplied, and the size of the resulting surplus or shortage.
Refer to the graph provided to answer the following questions.a. What are the equilibrium wage and quantity of workers in this market?b. For it to be effective, where would the government have to set a minimum wage?c. If the government set a minimum wage at $8,
Refer to the graph for question 4 With a minimum wage of$10, how many workers are unemployed (would like to work, but are unable to find a job)?a. 30b. 50c. 60d. 80e. 110
Refer to the graph provided. If the government establishes a minimum wage at $10, how many workers will benefit from the higher wage? Wage (per hour) $10 7 E 0 50 80 110 Number of workers
Effective price ceilings are inefficient because theya. create shortages.b. lead to wasted resources.c. decrease quality.d. create black markets.e. do all of the above.
Refer to the graph provided. A price floor set at $5 will result ina. a shortage of 100 units.b. a surplus of 100 units.c. a shortage of 200 units.d. a surplus of 200 units.e. a surplus of 50 units.
To be effective, a price ceiling must be set I. above the equilibrium price.II. in the housing market.III. to achieve the equilibrium market quantity.a. Ib. IIc. IIId. I, II, and IIIe. None of the above Price $5 0 3 4 E 100 150 200 Quantity
The state legislature mandates a price floor for gasoline of PF per gallon. Assess the following statements and illustrate your answer using the figure provided.a. Proponents of the law claim it will increase the income of gas station owners. Opponents claim it will hurt gas station owners because
True or false? Explain your answer. A price ceiling below the equilibrium price in an otherwise efficient market does the following:a. increases quantity suppliedb. makes some people who want to consume the good worse offc. makes all producers worse off
On game days, homeowners near Middletown University’s stadium used to rent parking spaces in their driveways to fans at a going rate of $11. A new town ordinance now sets a maximum parking fee of $7. Use the accompanying supply and demand diagram to explain how each of the following can result
Draw a correctly labeled graph showing the market for cups of coffee in equilibrium. On your graph, show the effect of a decrease in the price of coffee beans on equilibrium price and equilibrium quantity in the market for cups of coffee.
Draw a correctly labeled graph showing the SUV market in equilibrium. On your graph, show the effect on equilibrium price and quantity in the market for SUVs if the price of gasoline increases.
Which of the following is certainly true if demand and supply increase at the same time?a. The equilibrium price will increase.b. The equilibrium price will decrease.c. The equilibrium quantity will increase.d. The equilibrium quantity will decrease.e. The equilibrium quantity may increase,
An increase in the number of buyers and a technological advance will causea. demand to increase and supply to increase.b. demand to increase and supply to decrease.c. demand to decrease and supply to increase.d. demand to decrease and supply to decrease.e. no change in demand and an increase in

Showing 1200 - 1300 of 4718

First
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved