Economics Answers

Full employment is the situation when:which of the choices below is the right answer?
a.inflation rate is 20%
b.the curve of the aggregate demand has a positive slope
c.real GDP match with potential GDP
d.all of them
e.none of them

In long term, what happens with the aggregate supply:Which is the right answer from the choices below?
a.the aggregate supply has a negative slope
b.the aggregate supply do not depend on the level of prices
c.real GDP is under potential GDP
d.all of them
e.none of them

when a perfectly competitive industry is in a long-run equilibrium, all the firms in the industry will...?

What is the relationship between the velocity of money and the Cambridge k?

What are the differences between the Fisherian and Cambridge versions of the quantity theory of money?

Consider a homeless guy desperate fir food? Can you think of threr ways of substitution that he may be willing to make? In each case please specify what he gives up and what he gets

In the short term, if the central bank reduces the interest rate then what happens with GDP real and level of prices?

A wholesaler of pencil charges 24/- per dozen on an order of fifty dozen or less. For order in excess of fifty dozen, the price is reduced by 20 paise per dozen. Find the size of the order in order to maximize revenue

Do you think that inflation imposes a net cost to the economy after considering the gains and loss?

Using the elasticity formulas.] Answer the following questions: a) The initial price for an item is $6.00, and the quantity demanded is 550 units. When the price is raised to $6.50, the quantity demanded falls to 520 units. What is the point elasticity of demand? How would we categorize this elasticity (elastic, inelastic, unit elastic,...)? b) A product’s point price elasticity has been estimated at -1.85 (different from part a). At the initial price of $30, the quantity demanded was 30 units. If the firm cuts the price to $27.25, how much will quantity demanded and sold increase? c) A firm’s demand curve is estimated to be Q = 450 - 2.5P, where Q is quantity and P is the price of the good. At P = $40, what is the point elasticity of demand?