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The behavioral functions are given as follows.C = 20 + 0.8(Y - T); I = 14; G = 20; T = 10; IM = 0.5Y; X = 0.1Y*; Y* = 100where Y is domestic income; Y* is foreign income; C is consumption; T is tax; I is investment;G is government spending; IM is import; X is export.
(1) Calculate the equilibrium level of output in closed economy.
(2) Calculate the equilibrium level of output in open economy case. Is this economy runningtrade deficit or surplus?
(3) Calculate the multiplier for closed economy case. Calculate the multiplier for open economycase. Explain why the multipliers are different in two cases (I need an intuitive explanation).
The statement best describes the economics of Caribbean South America the people of the region largely survive on subsistence farming while national industries focus on mining and oil drilling.
Glen spends at least 40 hours a week at his place of business. If he closed the company, he could work for his competitor earning $50,000 a year. He also owns the building the company operates in and could rent it out for $12,000 a year if he closed ..
within the discussion board area write 400-600 words that respond to the following questions with your thoughts ideas
1. explain why relatively flat as opposite relatively steep labor demand curves are more consistent with the empirical
The demand for money to cover unexpected expenditures and to meet emergencies is known as
international businesses adopt technology to enhance effectiveness. why is leadership in a digital world more
The reading for this module (Adler chapters 9-12) focus on the changing structure of the company from simple individual (Archie Sergy) ownership to complicated "financialized" Wall Street forms of ownership; union busting battles that paralleled batt..
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Propose a regression model including the important explanatory variables that a business manager should use in estimating the demand for its product.
1. suppose that the long-run world demand and supply elasticities of crude oil are -0.906 and 0.515 respectively.
Discuss and explain the interest parity idea using formal methods Describe IS and LM curve behavior and nominal interest rate in the domestic economy,
A rancher and a farmer are located next to each other. Here are the facts of their situation: There is no fence between the ranch and the farm The cattle enter the farmer's fields and destroy $300 worth of corn each year. The rancher's business is w..
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