Y = $12,752,000,000,000 + $201,645,000,000 = 12,953,645,000,000 x = $12,752,000,000,000 r = ?n = 2010 - 2009y = x(r + 1)ⁿ 12,953,645,000,000 = 12,752,000,000,000 * (r + 1)¹ 12,953,645,000,000 ÷ 12,752,000,000,000 = (r + 1)¹ 1.016 = r + 1 r = 1.016 - 1 r = 0.016 y = $12,752,000,000,000 (since it is in 2009, this is future value) x = ? (initial value in 2007 r = 0.016 n = 2009 - 2007 = 2
y = x(r + 1)ⁿ 12,752,000,000,000 = x(0.016 + 1)² 12,752,000,000,000 = x(1.016)² 12,752,000,000,000 = x * 1.032 x = 12,752,000,000,000 ÷ 1.032 x = 12,356,589,147,287 the answer
When an economy is experiencing unemployment that is less than the natural rate, the right policy is to purse expansionary policies which will make more funds to be available in the economy to increase investment and demand.
Expansionary policies can be implemented by increasing goverments expenditures and reducing tax, the reduced tax will increase the disposable income of the citizens and invariably investment and demands all things being equal and these are the justification for the chosen option.
An increase in tax or a reduction in government expenditures will excercebate the unemployment all other things being equal.
Frictional unemployed is the time that a person takes to shift from one job to another job. For the time the employee prefer to work to earn money until the person gets the job. Such type of unemployment in the economy is known as Frictional Unemployment. In this case we can see that Chelsea is frictionally unemployed now because he is searching for a job because of job insecurities.
An economy named Scoobania is operating on full employment level. The production possibility curve of this economy is such that it can produce 1 unit of capital goods by sacrificing 2 units of consumer goods.
This means that the opportunity cost of one unit of capital goods is 2 units of consumer goods. However, through international trade this economy can obtain 1 unit of capital goods for 1 unit of consumer goods.
This implies that the economy will be able to consume more of both capital goods as well as consumer goods. This indicates that Scoobania will be able to consume at a point beyond its production possibility curve.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.