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Consider the identity S p−I = CA+D where S p is private sector saving, I is investment, CA is the current account surplus, and D is the government deficit.
(a) Show the above identity holds.
(b) Explain what the above identity means.
If equlibrium level of aggregate income in an economy is $250 billion while full-employment level of income is $450 billion, and if the value of MPC is 0.60, then additional investment needed to reach the full-employment level of income $____________..
A market in which there are many firms each selling differentiated products is most likely a ________ market.
In your paper include a discussion of the opposing position along with your rebuttal (of that opposing position). For instance, if you decided to write a paper explaining that people should be allowed to vote using the internet, then the opposition w..
Consider Romer’s growth model of Chapter 6 and let A0¯ = 100, l¯ = 0.06, What is the growth rate of output per person in this economy? What is the initial level of output per person?
Under the pure signaling model, the social benefit associated with education is
A firm's current profits are $750,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 8.5 percent, determine the value of the firm
Discussion surface area and volume play a role in marketing products, such as advantages and disadvantages. Give specific examples and include related information when appropriate, such as surface area, lateral area, cross section, etc.
what is the new wage and employment level; are employees better or worse off as a result of the health insurance benefits?
Explain how the United States calculates unemployment and why many economist do not find this as a real economic indicator. How is unemployment calculated in other countries? Give two examples. What are your thoughts and ideas on this?
Earlier this year, Greek citizens, fearing currency changes or capital controls, took billions of euros out of their bank accounts. Some of it they sent to banks in other countries, and some of it they even hid in flower pots, freezers, and yes, unde..
Jim’s utility function is U(x, y) = xy. Jerry’s utility function is U(x, y) = 1, 000xy + 2, 000. Tammy’s utility function is U(x, y) = xy(1 − xy). Oral’s utility function is U(x, y) = −1/(10+ 2xy). Who has the same preferences as Jim? Who has the sam..
For decision making for the firm with market power, fixed costs are:
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