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Suppose a company produces $5M worth of output and has sales of $2M each to domestic and foreign customers. It imports $1 M worth of raw material, pays its workers $3M in wages, pays its creditors $2M in interest, and has minus $1M in profits for its owners. This company’s operations add $4M to GDP whether measured by the value added approach, the expenditure approach, or the income approach.
Elucidate how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.
Find out a numerical equation linking planned aggregate expenditure to output. Show the determination of short-run equilibrium output for this economy using the Keynesian cross diagram.
How much income will each acre generate. What are the TR moreover MR for each acre.
Illustrate what is the firm's profit maximizing output level. Is the industry in long-run equilibrium.
What is per unit cost of producing 60 units of output. ATC(60)=$10 What is per unit labour cost of producing 60 units of output. AVC(60)=$6.67 What is per unit fixed cost of producing 60 units of output.
Explain how the strength of the economy as a whole could affect the marginal benefits also the marginal costs associated
Explain effect of an open market purchase on interest rates. Make sure you discuss liquidity effect, real income effect, price level effect and inflationary expectations effect.
What is the unregulated competitive equilibrium. What is the unregulated monopoly equilibrium.
If the market price of suits is constant, illustrate what is the shutdown level of output. What is the minimum price the firm can accept.
Provide some examples of discrete and continuous variables. What attributes of these variables make them discrete and continuous? Why?
You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the present value of this prize?
Illustrate and reinforce your answer with any theories from international trade and FDI theories.
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