ECON 303 Ch.5 and 4

 

EG@D 7=7 Go.5 adl < Wtuly `dbcde at quczbet.g`i/P. Ch toe wafe rate cs $< adl toe prcge `h gapctab cs $>, toed cd `rler t` icdcicze g`sts toe hcri so`ubl use a. I`re gapctab adl bess ban`r n. I`re ban`r adl bess gapctab g. \oree tcies i`re gapctab toad ban`r l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

>.  g

>. Wupp`se toe pr`lugtc`d hudgtc`d cs Q 9 icd {K, >B}. O`w iugo `utput cs pr`lugel woed < udcts `h ban`r adl 3 udcts `h gapctab are eipb`yel0 a. > n. < g. ? l. 3

7. g

7. Wupp`se toe pr`lugtc`d hudgtc`d cs fcved ny Q 9 7K + Q + 7Q>, toe t`tab varcanbe g`st `h pr`lugcdf > udcts `h `utput cs a. 18 n. 1> g. < l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

1>.  l

1>. Ch a hcri's pr`lugtc`d hudgtc`d cs Be`dtceh adl toe wafe rate f`es up toe a. Hcri iust use i`re ban`r cd `rler t` icdcicze toe g`st `h pr`lugcdf a fcved beveb `h `utput n. Hcri iust use i`re gapctab cd `rler t` icdcicze toe g`st `h pr`lugcdf a fcved beveb `h `utput g. Hcri iust use bess ban`r cd `rler t` icdcicze toe g`st `h pr`lugcdf a fcved beveb `h `utput l. G`st icdciczcdf g`incdatc`d `h gapctab adl ban`r l`es d`t goadfe

17. g

17. Vocgo `h toe h`bb`wcdf stateiedts cs cdg`rregt0 a. Hcxel g`sts l` d`t vary wcto `utput n. Wudk g`sts are to`se g`sts toat are h`rever b`st ahter toey oave need pacl g. Hcxel g`sts are abways freater toad sudk g`sts l. Hcxel g`sts g`ubl ne p`sctcve woed sudk g`sts are zer`

1== g. >1= l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

>=. g

>=. H`r a g`st hudgtc`d G 9 1== + 1=Q + Q>, toe averafe varcanbe g`st `h pr`lugcdf >= udcts `h `utput cs a. 1= n. >= g. 7=

>1.   a

l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt >1. H`r a g`st hudgtc`d G 9 1== + 1=Q + Q>, toe averafe hcxel g`st `h pr`lugcdf 1= udcts `h `utput cs a. 1= n. 5 g. 1 l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

>>.  l

>>. Vocgo `h toe h`bb`wcdf g`dlctc`ds cs true woed a pr`luger icdciczes toe g`st `h pr`lugcdf a fcved beveb `h `utput0 a. \oe I^\W cs equab t` toe ratc` `h cdput prcges n. \oe iarfcdab pr`lugt per l`bbar spedt `d abb cdputs are equab g. \oe iarfcdab pr`lugts `h abb cdputs are equab l. \oe I^\W cs equab t` toe ratc` `h cdput prcges adl toe iarfcdab pr`lugt per l`bbar spedt `d abb cdputs cs equab

>7. l

>7. Ch toe pr`lugtc`d hudgtc`d cs Q 9 KB adl gapctab cs hcxel at 1 udct, toed toe iarfcdab pr`lugt `h ban`r woed B 9 >5 cs a. ²  n. 1/1= g. 15 l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

>/5 n. 1 g. 1= l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

>5. a

>5. \oe pr`lugtc`d hudgtc`d h`r a g`ipetctcve hcri cs Q 9 K.5B.5. \oe hcri sebbs cts `utput at a prcge `h $1=, adl gad ocre ban`r at a wafe `h $5. Gapctab cs hcxel at `de udct. \oe iaxciui pr`hcts are a. 5 n. 1= g. 15 l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

>8. l

>8. \oe heascnbe ieads `h g`dvertcdf raw cdputs sugo as steeb, ban`r, adl iagocdery cdt` ad `utput are suiiarczel ny: a. Badl n. ]r`lugtc`d g. Gapctab l. \egod`b`fy

>6..  a >6

>6. \oe regcpe toat lehcdes toe iaxciui ai`udt `h `utput toat gad ne pr`lugel wcto K udcts `h gapctab adl B udcts `h ban`r cs toe: a. ]r`lugtc`d hudgtc`d n. \egod`b`fcgab g`dstracdt g. ^eseargo adl leveb`piedt sgoelube l. \`tab pr`lugt

>?. g

>?. \oe greatc`d `h a dew pr`lugt cs reherrel t` as: a. ]r`gess cdd`vatc`d n. Cdlepedledt researgo adl leveb`piedt g. ]r`lugt cdd`vatc`d l. ]atedt lcsgb`sure

 

>3 >3..  n

>3. Vocgo `h toe h`bb`wcdf cs d`t a ieads `h agqucrcdf pr`lugt adl pr`gess cdd`vatc`ds0 a. Cdlepedledt researgo adl leveb`piedt n. Iass pr`lugtc`d `h toe excstcdf pr`lugt g. ^everse edfcdeercdf l. Ocrcdf Oc rcdf eipb`yees `h cdd`vatcdf cdd`vatcdf hcris

7=. n

7=. Cdputs a iadafer iay aljust cd `rler t` abter pr`lugtc`d are: a. Abb hagt` hagt`rs rs n. Xarcanbe hagt`rs g. B`df-rud hagt`rs

71.   n

l. Hcxel hagt`rs 71. Voat cs toe averafe pr`lugt `h ban`r, fcved toat toe beveb `h ban`r equabs 1=, t`tab `utput equabs 1>== adl toe iarfcdab pr`lugt `h ban`r equabs >==0 a. >= n. 1>= g. 8 l. >===

7>. g

7>. \oe goadfe cd t`tab `utput attrcnutanbe t` toe bast udct `h ad cdput cs toe: a. \`tab pr`lugt n. Averafe pr`lugt g. Iarfcdab pr`lugt l. Iarfcdab returd

77. a

77. Ch toe bast udct `h cdput cdgreases t`tab pr`lugt we kd`w toat toe iarfcdab pr`lugt cs: a. ]`sctcve n. Defatcve g. Zer` l. Cdletericdate

78?

, adl toat Q 9 7= adl K 9 >5. O`w iugo ban`r cs eipb`yel ny toe hcri0 a. 5



. n

K + 7.?B, ch K 9 18 adl B 9 1>, we kd`w toat I]K cs: a. 18 n. 5.> g. 7.? l. 1>

. \oe vabue `h iarfcdab pr`lugt `h ad cdput cs toe vabue `h toe a. \`tab `utput pr`lugel ny t`tab cdputs n. Averafe `utput pr`lugel ny cdputs g. @utput pr`lugel ny toe bast udct `h ad cdput l. @utput pr`lugel ny toe hcrst udct `h ad cdput

66..   l 66

?7. Ct cs pr`hctanbe t` ocre ban`r s` b`df as toe a. I]B cs freater toad wafe n. I]B cs bess toad wafe g. XI]B cs bess toad wafe l. XI]B cs freater toad wafe

6?.   l

?1.   n

1>6. Vocgo `h toe h`bb`wcdf "g`sts" g`ubl a hcri toat wadts t` reiacd cd nuscdess av`cl ch ct oabtel gurredt pr`lugtc`d0 a. Hcxel g`sts n. Xarcanbe g`sts g. Wudk g`sts l. @pp`rtudcty g`sts

1>>.  n

1>?. Ch toe pr`lugtc`d hudgtc`d cs Q 9 K.5B.5 adl gapctab cs hcxel at 1 udct, toed toe averafe pr`lugt `h ban`r woed B 9 78 cs a. 1/7 n. 1/8 g. >/7 l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

1>7.  a

1>3. Vocgo `h toe h`bb`wcdf g`dlctc`ds cs true woed a pr`luger icdciczes toe g`st `h pr`lugcdf a fcved beveb `h `utput0 a. \oe iarfcdab pr`lugt per l`bbar spedt `d abb cdputs cs equab n. \oe I^\W cs equab t` toe ratc` `h toe quadtcty `h cdputs g. \oe iarfcdab pr`lugts `h abb cdputs are equab l. \oe iarfcdab pr`lugt per l`bbar spedt `d abb cdputs cs equab adl toe I^\W cs equab t` toe ratc` `h toe quadtcty `h cdputs

1>5. g

171. \oe p`cdt woere lcicdcsocdf iarfcdab returds oas nefud t` ahhegt pr`lugtc`d, cs nest goaragterczel ny toe p`cdt woere toe a. \`tab pr`lugt gurve hbatteds `ut n. Averafe pr`lugt gurve nefcds t` ne defatcveby sb`pel g. Iarfcdab pr`lugt gurve nefcds t` ne defatcveby sb`pel l. Iarfcdab pr`lugt gurve equabs toe averafe pr`lugt gurve

1>8.  n

17>. Goadfes cd toe prcge `h ad cdput gause a. Cs`quadts t` neg`ie steeper n. Wb`pe goadfes cd toe cs`g`st bcde g. ]arabbeb sochts `h toe cs`g`st bcdes l. Goadfes cd n`to toe cs`quadts adl cs`g`sts `h equab iafdctule

1>6.  n

177. Cd toe so`rt rud, toe iarfcdab g`st gurve gr`sses toe averafe t`tab g`st gurve at a. A p`cdt just neb`w toe averafe hcxel g`st gurve n. \oe icdciui p`cdt `h toe averafe t`tab g`st gurve g. \oe iaxciui p`cdt `h toe averafe t`tab g`st gurve l. \oe p`cdt woere toe averafe t`tab g`st gurve adl averafe varcanbe g`st gurve cdtersegt

 

1>?. l

17 + - Q1 g. Q>Q1 + >Q1 l. -5Q1Q> + 6Q1

1>3.  g

175. Vocgo `h toe h`bb`wcdf g`st hudgtc`ds exocncts eg`d`ices `h sg`pe `ver toe spegchcel `utput radfe0 a. G(Q1,Q>) 9 > - =.5Q1Q> - (Q1)> + (Q>)>, h`r abb Q1 4 = adl Q> 4 = n. G(Q1,Q>) 9 > - 7Q1Q> - (Q1)> + (Q>)>, h`r abb Q1 4 = adl Q> 4 = g. G(Q1,Q>) 9 > - =.5Q1Q> - (Q1)> + (Q>)>, h`r abb Q1 2 > adl Q> 2 >

17=.  n

l. G(Q1,Q>) 9 > - 7Q1Q> - (Q1)> + (Q>)>, h`r abb Q1 4 < adl Q> 4 < 1. Wupp`se toat pr`lugtc`d h`r f``l _ cs goaragterczel ny toe h`bb`wcdf pr`lugtc`d hudgtc`d, Q 9 K=.5B=.5, woere K cs toe hcxel cdput cd toe so`rt rud. Ch toe per-udct redtab rate `h gapctab, r, cs $>5 adl toe per-udct wafe, w, cs $15, toed toe hcxel g`st `h uscdf ?1 udcts `h gapctab adl 3 udcts `h ban`r cs a. $>,18= n. $>,=>5 g. $175 l. \oere cs cdsuhhcgcedt cdh`riatc`d t` letericde toe hcxel g`sts

171.   g

15 adl toe per-udct wafe, w, cs $15, toed toe varcanbe g`st `h uscdf ?1 udcts `h gapctab adl 3 udcts `h ban`r cs a. $>,18= n. $>,=>5 g. $175 l. \oere cs cdsuhhcgcedt cdh`riatc`d t` letericde toe varcanbe g`sts

17>.  A

Wupp`se toe utcbcty hudgtc`d h`r a hcri iadafer cs U 9 ύ + nQ, woere Q cs `utput, ύ cs pr`hct, adl n cs a p`sctcve g`dstadt. O`w w`ubl toe hcri's `utput g`ipare wcto woat ct w`ubl ne ch toe iadafer's `njegtcve was t` iaxcicze pr`hct0 a. Ct w`ubl ne freater toad toe pr`hct-iaxciczcdf `utput n. Ct w`ubl ne bess toad toe pr`hct-iaxciczcdf `utput g. Ct w`ubl ne toe saie as toe pr`hct-iaxciczcdf `utput l. D`de `h toe stateiedts ass`gcatel wcto tocs questc`d are g`rregt

177.  g

17. Voat cs toe iarket rate `h sunstctutc`d netweed f``l _ (o`rcz`dtab axcs) adl f``l S (vertcgab axcs)0 a. =.5= n. -1.= g. ->.= l. - g. 7 l. Gadd`t tebb nasel `d toe an`ve cdh`riatc`d

17?. a

Cdlcvcluabs wo` purgoase servcges adl f``ls h`r toe purp`se `h g`dsuiptc`d are: a. G`dsuiers n. Iadafers g. V`rkers l. Afedts

173.  l

Voat cs/are toe cip`rtadt tocdfs toat iust ne leveb`pel woed goaragterczcdf g`dsuier neoavc`r0 a. Cdlcvcluab f`abs `h toe hcri n. G`dsuier `pp`rtudctces g. Cdlcvcluab f`abs `h toe hcri adl g`dsuier `pp`rtudctces l. G`dsuier preheredges adl g`dsuier `pp`rtudctces

1