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The following information describes a hypothetical economy (assume all numbers are in billion if necessary)
C = 100 + 0.75 DI
Ig = 850
G =950
Xn = -100
Determine the value of the MPC of this economy?
Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.
What kind of shocks could have caused this change to the money demand function? Determine the new interest rate and equilibrium level of output.
The information below explains the real GDP per capita for the country of Utopia for the period of 1975 to 1991.
Suppose two nations are considering specializing in either calculators or personal computers. If solely producing calculators, country A can produce 300 and country B can produce 400.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Compute the income elasticity of demand for product below, by using average values for quantities and incomes.
Assume that Florida migrant workers are effectively unionized. What will be the impact of unionization on?
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Suppose that you believe that the average rate of inflation over the next 20 years will be 3.5 percent. Would you by the nominal or the inflation-indexed bond?
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