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Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned Investment I and net exports X are independent of the level of real GDP and constant at I = 30 and X = 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y = C + I + X. a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if I changes to 10? What does this outcome reveal about the size of the multiplier?
How have changes in the industry and the effects of globalization impacted Walmart'sability to successfully compete? List and describe two factors that are negatively impact
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government
In 2014, we predict the demand curve for a product will continue to shift leftward, which will tend to lower price and quantity. However, with a lower price, supply will also
A forklift can be purchased for $30,000. The market value of the forklift decreases by 20% of the previous year’s value for 2 years, and then by 15% in years 3 through 10. Mai
Which of the following can cause the usual OLS t statistics to be invalid (that is, not to have t distributions under H0)? Heteroskedasticity. A sample correlation coefficient
Suppose that in the market for aluminum rods the demand and supply functions are given by: Find the initial equilibrium price and quantity. Calculate the initial consumer surp
A man is planning to retire in 20 years. He can deposit money for his retirement at 12% interest rate compounded monthly. It is estimated that the future general inflation (f)
This is an essay question, but I don't know how to explain. Should I use the supply-demand curve to explain, or use the marginal cost- marginal revenue curve to explain this
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