Explain whether the following statements are true, false, or uncertain.

True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start...

True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. a. Nominal interest rates are always higher than real interest rates. Answer b. If the lockdown measure due to a further...

Determine whether each of the following statements is true, false, or uncertain. Explain your answer carefully....

Determine whether each of the following statements is true, false, or uncertain. Explain your answer carefully. Include an IS-LM diagram in your explanations for each part. a. An exogenous increase in saving raises investment b. An increase in government spending reduces disposable income c. An exogenous reduction in money demand raises investment spending but reduces saving d. Because of the crowding out effect, an increase in government spending may lead to no change in equilibrium income e. The greater the...

Briefly explain after you decide if the statement is True, False or Uncertain 1. The Original...

Briefly explain after you decide if the statement is True, False or Uncertain 1. The Original Philips Curve (before 1970s) uses expected inflation as last year’s inflation 2. Using the Solow growth model, with or without technology, an economy that increases its saving rate will always experience faster growth 3. When labor force is constant, if the number of employed workers in a country decreases, the unemployment rate in the country will increase 4. The zero lower bound refers to...

State whether the following statements are true, false or uncertain and briefly explain the reason for...

State whether the following statements are true, false or uncertain and briefly explain the reason for your choice. Your grade will largely depend on the quality of your explanations. a. Suppose that a firm’s short-run total cost function is STC= 0.1q2 + 4q +100. Will the producer surplus at P=$15 be $302.5? b. Suppose that a firm is price taker. If the price is equal to marginal cost, then the profit is being maximized. c. If a firm wished to...

Explain and discuss whether each of the following statements is true or false (please explain) The...

Explain and discuss whether each of the following statements is true or false (please explain) The aggregate supply function is upward sloping because at higher expected price levels, firms wish to produce more output. In the medium run output and the price level always return to their same (original) values after a demand shock. An increase in the minimum wage will cause an increase in the natural rate of unemployment with an increase in the equilibrium real wage.

Are the following statements true, false, or uncertain? Please explain. a. Government policies that interfere with...

Are the following statements true, false, or uncertain? Please explain. a. Government policies that interfere with free markets will always be inefficient and therefore decrease society’s net benefits. b. Economic theory predicts that an increase in gas prices will cause people to drive less and therefore spend less on gasoline. c. When government imposes a regulation that restricts pollution to a maximum quantity per firm, the policy results in a higher cost for pollution abatement than is necessary. d. Coasian...

True, False, or Uncertain [48 marks - 6 marks each] Explain why each of the following...

True, False, or Uncertain [48 marks - 6 marks each] Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. A4-5. Suppose the government funds the provision of a pure public good from tax revenue. The total burden to the economy of providing the good exceeds the amount spent on the good. A4-6. A decrease in posted...

For each of the following statements, indicate whether it is true, false, or uncertain and EXPLAIN...

For each of the following statements, indicate whether it is true, false, or uncertain and EXPLAIN WHY. a. In the long-run the typical monopolistically competitive firm earns no economic profit and that indicates that the firm is economically (productively) efficient. b. Monopolists have complete pricing freedom as they seek to maximize profits. c. In the short-run, if price drops below the average total cost, the perfectly competitive firm must shut down immediately.

Question 1: True, False or uncertain (16 marks) Explain whether each of the following statement is...

Question 1: True, False or uncertain Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each) The price of cars produced in...

TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and...

TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and equations to prove so if relevant. Based on the Solow growth model, different saving rates explain varying economic growth rates across countries we observe in the real economy. A competitive equilibrium of the Solow growth model is achieved only when the economy reaches the steady state. If the consumer’s preferences satisfies the “more is better” assumption, the indifference curves representing her preferences are necessarily...