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Consider the diagram below, which applies to a nation with no government spending, taxes, and net exports. Use the information in the diagram to answer the following questions, and explain your answers. (Pages 253–263 "Economics Today textbook)
a. What is the marginal propensity to save?
b. What is the present level of planned investment spending for the present period?
c. What is the equilibrium level of real GDP for the present period?
d. What is the equilibrium level of saving for the present period?
e. If planned investment spending for the present period increases by $25 billion, what will be the resulting change in equilibrium real GDP?
What will be the new equilibrium level of real GDP if other things, including the price level, remain unchanged?
Danny “Dimes” Donahue is a neighborhood’s 9-year old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.75 each, he sells 250. At a price of $1.25 each, he sells 300.
part of a business strategy you are considering involves the reduction of labor and material costs. your cfo suggested
provide a cost-benefit analysis for a company which has to decide whether to hire more staff or hire temporary workers
How do you think you might measure the net impact of technological change on overall employment and GDP in the U.S.?
If a representative firm with total cost given by TC = 20 + 20q + 5q2 operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,400 - 40P and QS = -400 + 20P, the number of firms operating in the sh..
write the economic analysis section of a business proposal. this will include statements about the market structure and
State the Law of Supply. Why do the supply curve slopes upward? State the Law of Demand. Why do the demand curve slopes downward? Explain why normal profit is an implicit cost (i.e., subtracted from accounting profits) in our definitionof economic tr..
In the Middle Ages, goldsmiths took in customers' deposits (gold coins) and issued receipts that functioned much like checks do today. People used the receipts as a medium of exchange. Goldsmiths also issued loans by writing additional receipts ag..
An increase in wealth would shift the:
Write the equation for the total demand for emissions across both sectors. Does one sector have uniformly lower marginal abatement costs than the other? What is the total amount of emissions in the absence of regulation?
Bridget has a limited income and consumes only wine and cheese. Her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is $4 per pound.
Normal 0 false false false EN-US X-NONE X-NONE If income increases by $10,..
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