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According to the Bureau of Economic Analysis, during the recession of 2007-2009 household saving as a fraction of disposable personal income increased from a low of just over 1 percent in the first quarter of 2008 to 5 percent in the second quarter of 2009. All else equal, what impact would this change in saving half on the MPC, MPS and multiplier? How would this change affect equilibrium output when planned investment changes.
Your partner and you have met with your property insurance agent for an annual insurance policy review. Your partner asks why you have to pay so much for liability insurance.
The price of televisions has been declining in Japan for the past few years. Explain how it affects the value of marginal product of labour (VMPL), equilibrium wage and quanti
A plastics company is considering two injection molding processes. Process X will have a first cost of $700,000, annual costs of 300,000, and a salvage value of $150,000 after
A firm's cost function is TCi = a + bqi + c qi2, where a, b and c are positive constants a. Find its marginal cost function, and show that MC is increasing for all q. b. Find
Use your own words to explain the idea of equilibrium in the income-expenditure model. As part of your answer explain what happens when aggregate expenditure either exceeds or
The Marriott hotel chain typically charges 20% more for rooms Sunday-Thursday night than they do on weekend in “downtown” urban business markets. What type of pricing strategy
You earn $3,000 from a part-time job. You have a choice between spending the money now or putting it away in a bank account that pays 5 percent interest per annum. What is the
A highway department is considering building a temporary bridge to cut travel time during the three years it will take to build a permanent bridge. The temporary bridge can be
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