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(A)In the Keynesian cross, assume that the consumptionfunction is given by:C = 100 + 0.5 (Y-T)If planned investment = 100 Government purchases and taxes are both 50 Then calculate the equilibrium level of income.
(B) Suppose that money demand function is:(M/P)d = 1000 - 100r
Where r is the interest rate in percentage, money supply (M)is 1000 and the price level (P) is 2. What is the equilibrium interestrate?
Based on the information for the U.S. for the period 1970 to 1983, the following regression results were obtained, GNPt = -787.4723 + 8.0863M1t r2 = 0.9912
Suppose the market for cotton is perfectly competitive. A representative firm's short-run marginal cost is given by SRMC=5+Q, while their minimum average variable cost is $7. If the market price of cottion is $20 per unit, how much should the firm..
On graph paper, plot the Cookie Monster's total utility and marginal utility. Due to the difference in the order of magnitude, make them two separate graphs. In each case, put cookies on the horizontal axis and utility on the vertical.
A printer's wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is the publishing house making the optimal input choice.
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing and able to pay for this outputis $40 per unit. If it priduces this output, the firms a..
What sum should you deposit into an account to yield 20 year end payments, starting with $10,000 at the end of the first year and increasing by 4% each year at an interest rate of 8% compounded quarterly
Manufacturing equipment was acquired for $12,000. Determine the undepreciated capital cost of this equipment after 3 years of depreciation using CCA depreciation as a Class 43 asset (CCA rate is 30%).
Chell's demand function is P(ch) = 5-q(ch). Gordon's demand function is P(g)= 3-q(g). Draw the aggregate demand curve. What is the consumer surplus with the price is $2?
Ford Motor Company was able to reduce by 80% the cost required for installing data acquisition instrumentation on test vehicles by using MTS-developed spinning wheel force transducers. (a) If this year's cost (i.e., end of year 1) is expected to be..
sales 1990 116 1991 105 1992 29 1993 59 1994 108 1995 94 1996 27 1997 119 1998 34 1999 34 2000 48 2..
If the government imposes a tax of $15 a month on the market, what price would the buyer of an Internet service pay?__________ What price would the seller of the Internet service receive?____________________
2008 2009 Population 800,000 808,000 Number of hours worked 2,000,000,000 2,000,000,000 Real gdp 12,000,000,000 12,362,400,000 Real gdp per capita Labor productivity What was the growth rate of the population between 2008 and 2009
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