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If you know the slope of the AE curve is .80, then you can complete the schedule below. Do so. Hint words: Linear relationship Income Aggregate Expenditures (C + I + G) $1300 $1700 $2300 $2500 $3300 _____ $4300 _____ $5300 _____ $6300 _____ Draw this graph complete with an AP curve. At what level of output (income) will this economy operate? Line up this AE/AP graph above a production graph. Demonstrate with a dotted line that there is a recessionary gap where potential output is $5800. How much of a gap is there? What is the MPS and the Multiplier? The government can close this gap two ways. They can increase government expenditures by $_____________ or they can reduce taxes by $______________. Show all work.
Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves. What happens to the equilibrium price for the pollution rights?
Demand in a perfectly competitive market is Q = 100 - P . Supply in that market is Q = P - 10.
What is the equation for national saving? Calculate the equilibrium interest rate, aggregate level of investment in the economy, and the aggregate level of national saving. Illustrate in a diagram.
List the three most important expenditure programs of the federal government. How do these differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchas..
Write down the profit maximization problem and optimality conditions. What is the technical rate of substitution? What is the rate of transformation? What is my demand for L? What is my demand for K? (d) Write down the cost function as a function of ..
For an individual with $8,000 in annual drug expenses, how much would he/she pay out of pocket in Medicare Part D under the 2006 rules?
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. After the tax, 9 billion cases of beer are sold every year; consumers pay $10 per case (..
q.company xyz produces cellular phones brand greenberry at a yearly rate of 500000 units. its total fixed costs are 6
Offering group medical coverage to large firms and requiring all employees to participate in the coverage.
ABC Company currently does not have any debt. Its earnings before interest and taxes (EBIT) are $500,000, and it is a zero-growth company. The firm's tax rate is 40%. What is the firms cost of equity?
The city of Springville is building a new fire station. The city is expanding and is in need of a second fire station closer to the newer areas of the city to ensure shorter response times. The project manager and the project team have been selected ..
A firm has a production function represented by: q=L^(.75)K^(.25). Find a function for how much capital and labor a firm should hire to produce a given level of production in terms of the price of labor, w, and the price capital, r.
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