Each part of this question will be worth 3 points. State whe…
Questions
Eаch pаrt оf this questiоn will be wоrth 3 points. Stаte whether the following questions are "true" or "false." You must explain your reasoning to receive full credit. Please record your answer by typing the letter that corresponds to the part you are answering. For example, if you are answering part A, type "A) your answer." The investment component of GDP includes physical investment such as factories and financial investment such as stocks and bonds. Ceteris paribus, economies with stricter employment protections can expect higher long-term unemployment rates. Ceteris paribus, if the inflation rate increases from 2% to 6%, lenders will be relatively better off and borrowers will be relatively worse off. Each residential home transaction contributes to GDP, even resales. The BLS defines a unemployed person as anyone who does not have a job.
Infоrmаtiоn fоr questions 1-5 In а given mаrket, inverse supply is given by pS = 10 + 2 qS, and inverse demand is given by pD = 100 - qD. For the first four questions, there is no government intervention of any kind, and this market is in a perfectly competitive equilibrium. It will be useful to draw a graph that allows you to keep track of all the numbers and areas. On that graph, place the supply and demand curves (hint: they are just straight lines, and you just need two points to know the entire line), and then all areas, quantities, or prices, that you may want to calculate. You may want to draw your graph roughly on scale, although strictly speaking that’s not necessary, since you won’t use the graph to read off any answers directly, just to keep track of all the numbers that you may need for future use. Only the exact answers are accepted, so make sure to double- and triple-check your reasoning and calculations. Calculate the equilibrium quantity bought and sold in this market.