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Suppose that the following equations represent an economy.C=170+0.6(Y-T)T=200I=100-4rG=350(M/P)d=L=0.75Y-6r
Ms/P=735
All are measured in billions and r is measured as a percent, e.g. r=10 means 10%.
a). Derive the equation for the IS curve
b)Find the equation for LM curve.c)
c) express both IS and LM curves in terms of r, and graph both curves.Find their slopes.
d) Calculate the equilibrium levels of real utput, interest rate, planned investment, and consumption.
What is a government budget deficit. Elucidate how does a federal budget deficit affect the economy.
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Explain how much of input 2 does it use. Illustrate what is the most that it is willing to bribe an inspector to allow it to use another unit of input 1.
You are a financial adviser to a U.S. corporation that expects to receive a payment of 40 million Japanese yen in 180 days for goods exported to Japan.
An industry consists of two firms with identical costs C(q) = 5q +q2=2. The firms can either collude or compete. If both collude, they each produce qm (half the monopoly output Qm). If one rm colludes and the other competes, the latter produces th..
Growth of India and China - China and India are often referred to as two of the fastest growing countries. Compare their recent growth rates to the U.S. growth rate.
Utilizing a supply and demand analysis, what would placing rent controls due to the number of apartments accessible for low-income individual.
Elucidate the economic cost function for this business. What is the economic break even number of units for this operation.
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
Would you assume this as an externality, and if you do, what would you suggest be done about it.
Given an MPC of .8, if the C+I equilibrium level of aggregate expenditure is $600 billion, then government expending of $50 billion is included, Determine new equilibrium level of aggregate expenditure?
Suppose you are advising a small country (such as Bermide) on whether to print its own money or to use the money of its larger neigher (such as the United States). What the costs and benefits of a national money.
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