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1. Consider an economy in which C = 1000 + 0.75YD, I = 200, G = 300, T = 300, and (X-M) = 0.
2. Calculate equilibrium GDP
3. Calculate saving at this level of GDP (Hint: use the equation for leakages)
4. Calculate the spending multiplier
5. Calculate the tax multiplier
6. How will equilibrium GDP change is G increases by 100, and what is the new equilibrium level of GDP?
7. How will equilibrium GDP change if G and T both increase by 500, and what is the new equilibrium level of GDP?
Since she sleeps 9 hours a night, the maximum number of hours she can work a month (taken as 30 days) is 450. She gets pleasure not only from her spending money but also from her leisure hours. Draw her budget constraint in leisure-expenditure spa..
Illustrate what effect a contractionary fiscal policy have on the price level and real GDP.
The following quotation is from Bloomberg .Com and is in turn based on extracts from a paper by Michael Spence: As you can see by the brief bio I have attached he's no "lefty." Is the approach to budget deficits briefly outlined here more "Keynes..
What does gross domestic product tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008?
texas instrument once announced a price for random-access memories that wouldnt be available until two tears after the
Write the macroeconomic issue about the lack of growth of Malaysia, write the reason why this issue happened, the impact of this issue (good influence and bad influence), and must have the reference to support your answer
Assume you have a negotiation between Management and Labor concerning Labor wages. Management and Labor do well when they each do the opposite of what other does.
Now assume that the government imposes a price ceiling of $4 per bushel on tomatoes. What do we call this situation Which curve (supply or demand) sets the actual number of tomatoes traded in the market if the price ceiling is in place
Consider the process by which the economy self-corrects following an initial increase in aggregate demand. This process is similar to the process of self-correction following an initial decrease in aggregate demand, but in reverse.
Write a short paper in which you describe the macroeconomic factors that caused headwinds for McDonald’s in 2012. Also, regarding the discussion of when McDonald’s introduced its Dollar Menu strategy in the fall of 2002, why was the company assuming ..
Explain how the price elasticity of demand varies as we move from left to right along a linear demand curve. At which part of the curve is demand unit elastic Where is it elastic Where is it inelastic
1. calculate ae given the information below and completely fill in the table.2. where is equilibrium in this economy
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