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Economist in Funlandia, a closed economy, have collected the following information about the econonmy for a particular year.
Y= 10,000C= 6,000T=1,500G= 1,700
The economists also estimate that the investment function is:
I=3,300-100r
where r is the country's real interest rate, expressed as a percentage. Calculate private saving, public saving, national saving, investment and equilibrium real interest rate.
Suppose the government reduces taxes by $20 billion, that there is no crowding out, and that the marginal propensity to consume is 3/4. 1. What is the initial effect of the tax reduction on aggregate demand
Arc income elasticity Deluxe Carpeting a leading manufacturer of carpeting sold 28 million square yards of carpeting at a price of $16 per yard. This year, GNP per capita is expected to fall from $19,000 to $17,000 as the nation enters a recession..
Give the amount of the change in the equilibrium level of Real GDP due to a $6 increase in spending on goods and services by households. Give the amount of the change in the equilibrium level of Real GDP due to a $6 increase in spending on goods a..
Suppose the velocity is constant and the economy's output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level next year if the FED keeps the money supply constant.
Suppose that the demand for broccoli is given by Demand Q= 1,000 - 5p where Q is quantity per year measured in hundreds of bushels and P is price in dollars per hundred bushels. The long run supply curve for broccoli is given by Supply: Q= 4P - 80
In March of year 0, Molly begins building a barn that she will use for a horse stable business. This barn costs $43,000 plus $7,000 for earthwork to make it usable, and is placed into service in May of year 0. She also buys a tractor for this busines..
what it is doing, given its high cost. You consider paying them some amount per period so that they would stop producing in this market. Based on (b) and (c), what is the highest amount you are willing to pay them per period, including any transac..
Provide three examples of operating firm formed as, sole proprietorship, partnership and corporation. Describe how you decided on categorizing them.
At its current short-run level of production, a firm's average variable costs equal $30, and its average fixed costs equal $70. Its total costs at its current production level equal $34,000. a. What is the firm's current output level
Assume that demand for a commodity is represented by the equation P = 10 - 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price. Use the equilibrium condi..
Setup a two-variable regression model (i.e. write down the PRF) to examine the impact of per capita disposable income on real per capita gasoline expenditures.
The best estimates for the first costs, yearly costs (O&M) and yearly benefits (Energy savings) are given below. However, uncertainty exists about the disposal cost and energy savings. The MARR is 5%; taxes and inflation can be ignored.
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