Suppose we have the following market supply and demand schedules for bicycles: Price Quantity Demanded Quantity Supplied$100 70 30$200 60 40$300 50 50$400 40 60$500 30 70$600 20 80 a. Plot the supply curve and the demand curve for bicycles. (Note please don’t worry about turning in the curve electronically‚ just plot it on paper. Doing so will help with the remaining questions.) b. What is the equilibrium price of bicycles? $ 300.00 c. What is the equilibrium quantity of bicycles? 50 d. If
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domestic product (GDP) is one the primary indicators used to gauge the health of a country’s economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually‚ GDP is expressed as a comparison to the previous quarter or year. For example‚ if the year-to-year GDP is up 3%‚ this is thought to mean that the economy has grown by 3% over the last year. Measuring GDP is complicated (which is why we leave it
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Introduction What is GDP? The Gross Domestic Product (GDP) has been the most widely used indicator of a nation’s welfare since 1944. For decades‚ people regard countries with higher GDP as stronger ones and whatever is good for the GDP is also good for the nation. But is that true? And what does GDP actually measure? In my opinion‚ GDP only measures part of the economic growth‚ while ignores the economic health and human well-being. First of all‚ GDP counts all the money transitions of goods and
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Deficit Spending: The Deficit Good or Bad "Spending financed not by current tax receipts‚ but by borrowing or drawing upon past tax reserves." ‚ Is it a good idea? Why does the U.S. run a deficit? Since 1980 the deficit has grown enormously. Some say its a bad thing‚ and predict impending doom‚ others say it is a safe and stable necessity to maintain a healthy economy. When the U.S. government came into existence and for about a 150 years thereafter the government managed to keep a balanced
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businesses are started of which only a few are successful and grow larger. These businesses are both made by foreigners and nationals. This is also often by those who have worked for others and now want to use the opportunity to go operational. In the case of Cameroon‚ businesses like manufacturing‚ services‚ agriculture and industry have dominated the scene‚ a majority of which are owned by private individuals: this is private investments. Investment activities account for a greater proportion of Cameroon’s
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The U.S. National Debt The national debt is the total amount of money the United States Treasury Department has borrowed and currently owes to the federal government’s creditors (Sylla). These creditors are mostly comprised of the public‚ including individuals‚ corporations‚ as well as state‚ local and foreign governments. They also consist of various government trust funds‚ such as Social Security and Medicare. Additionally‚ they include the Federal Reserve‚ mostly in the form of treasury
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In what ways has the sustained existence of a trade deficit influenced the conduct of macroeconomic policy in African states such as Tanzania? Since independence African states like Tanzania have sought to use macroeconomic policy to pursue economic development to meet their own agendas as independent states (Mkandawire‚ 2004‚ p295). States sought to assert their new status in the world whilst raising living standards for their people. The states’ ability to exhibit autonomy of action has been
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as a whole‚ rather than individual markets. This includes national‚ regional‚ and global economies.[1][2] With microeconomics‚ macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP‚ unemployment rates‚ and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income‚ output‚ consumption‚ unemployment‚ inflation‚ savings‚ investment
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years 2010 and 2011. As seen in the graph‚ Japan’s economy made a plunge from year 2007 to year 2008‚ where GDP fell from ¥525‚469‚000 to ¥505‚794‚000 at a rate of 3.74%. This recession is the result of the world financial crisis that occurs from year 2007 to 2009. From the respective years of 2008 to 2009‚ Japan’s economy had made a further plummet by 2.02%. The sharp decline in real GDP of Japan results in an economic trough at ¥495‚570‚000 in the business cycle. Economists estimates that it was
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decision to bet against the dollar a good one? Why or why not? A: Yes. He is betting that trade deficit will not be fixed and American’s bad habit of borrowing from abroad to pay for today will not stop. This is caused by Americans spending far more on imports than they are earning from exports. To finance this trade deficit‚ the U.S. borrows from abroad. Also‚ the U.S. government is spending more than it takes in from taxes. The budget deficits widens the gap between the national income and
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