CHAPTER 9
INCOME AND SPENDING
Solutions to the Problems in the Textbook:
Conceptual Problems:
1. In the Keynesian model, the price level is assumed to be fixed, that is, the AS-curve is horizontal and
Chapter 6
Solutions to the Problems in the Textbook:
Conceptual Problems:
1. The aggregate supply curve and the Phillips curve describe very similar relationships and both curves
can be used to analyz
CHAPTER 8
Solutions to the Problems in the Textbook:
Conceptual Problems:
1. The first question you should ask yourself as a policy maker is whether a disturbance is transitory or
persistent. You shou
Chapter 7
Solutions to the Problems in the Textbook:
Conceptual Problems:
1. The rate of unemployment is affected by the frequency, that is, the number of times that
workers become unemployed in a per
Chapter 5
Solutions to the Problems in the Textbook
Conceptual Problems:
1. The aggregate supply curve shows the quantity of real total output that firms are willing
to supply at each price level. The
CHAPTER 4
GROWTH AND POLICY
Solutions to the Problems in the Textbook
Conceptual Problems:
1. Endogenous or self-sustained growth supposedly can be achieved by policies that affect a
nation's savings
CHAPTER 3
Solutions to the Problems in the Textbook
Conceptual Problems:
1. The production function provides a quantitative link between inputs and output. For example, the
Cobb-Douglas production fun
CHAPTER 2
Solutions to Problems in the Textbook:
Conceptual Problems:
1. Government transfer payments (TR) do not arise out of any production
activity and are thus not counted in the value of GDP. If
CHAPTER 1
Problems
1. Increases in the availability of resources, that is, labor and capital used in the production of
goods and services account for only part of a nation's economic growth. The effic
PROBLEM 8-4
(a)
MOONEY COMPANY
Bank Reconciliation
as at 30 November 2010
Balance per bank statement.
$17 069.40
Add: Outstanding Deposits.
1 338.00
.
18
407.40
Less: Unpresented cheques
No. 2451. $1
Solution to Assigned Questions
Chapter 8
Question 3, 5, 8, 15, 19, 22, 23
Brief Exercises BE8.1, BE8.3, BE8.5, BE8.7, BE8.8, BE8.10
Exercises E 8.1, E 8.3, E 8.5, E 8.7, E 8.9, E 8.12
Problem P8.1, P8