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Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8 Y . Assume further that planned investment I g and net exports X n are independent of the level of real GDP and constant at Ig=30 and X n = 10. Recall also that, in equilibrium, the real output produced ( Y ) is equal to aggregate expenditures: Y = C + I g + X n . a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if Ig changes to 10? What does this outcome reveal about the size of the multiplier?
China's current financial account.
Assume that the two firms behave as Cournot Duopolists. Explaining the concept of best response or Creaction function, determine the best response function for each firm. Calculate the profit maximizing output of each firm and the market price.
Use the demand and supply analysis to explain how higher price of corn impact the market for Ethanol (a motor fuel manufactured from corn and can be used to power the engines of many Automobiles).
How does the theory of efficient production apply to manager of government bureaus or department that are not run for profit How about nonprofit club that collect enough dues from their members to cover the cost of operation
New York City's banking community served many of the functions of a central bank during large parts of the “displaced 19th century”
Suppose that upon entering the European Union (EU), it is discovered that the cost of automobile production in Poland is €14,000 while it is €20,000 in Germany. Suppose that the EU, which has a customs union, has an X percent tariff on automobiles..
Agricultural commodities are known to have a price-inelastic demand and the be necessities, How can this information allow us to explain why the income of farms falls (a) after a good harvest? (b) In relation to the incomes in other sectors of the..
Why is the demand of labor a derived demand Explain the shape of the supply of labor curve. What is the relationship between productivity and the wages earned by an employee What are some factors that determine the level of your income
The current economic downturn has been called a housing disaster, a financial disaster and a debt crisis, but the simplifying logic of the political season has settled on what is really more a result than a cause.
you are the manager of a California winery.then how would you expect the events to affect the market equilibrium price you receive for a bottle of wine.
What is an optimum currency area. What are the potential gains and the potential losses when countries adopt a common currency In terms of a country reacting to economic shocks, what conditions would be desirable in labor markets.
What would the number of paying patients and federally funded seniors be if the federal funding agency raised its rate to $120 per treatment?
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