Refer to Table 20-19. Looking at the table above, what is the rate of growth of the average price level from 2015 to 2016?

In the Keynesian model in the short run, what is likely to happen to employment after each of the following shocks?

(a) An increase in taxes (b) An increase in consumer spending generated by a reduced desire for saving (c) An increase in the money supply

During droughts, cities often impose water use restrictions on consumers. Suppose a representative consumer has preferences for Water (W) and other goods (X) given by the utility function:

U(W,X) = WX. Suppose the price of other goods is $1 and the price of water is initially 50¢. The consumer has a budget of $50/week. a. How much water will the consumer purchase each week? b. Suppose the government imposes a quota on water use of 50 units/week. Show that the quota reduces the representative consumer's utility. c. By how much does the quota harm the representative consumer? Specifically, compute the equivalent variation of the quota.