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Household spending is given by the following equation: C = $100 + 0.70Yd and Intended Investment = $125.
(a) Calculate the equilibrium level of income in the economy, and explain why this is the case.
(b) If the current level of income is $500 calculate and explain what is happening in the economy?
How can you take advantage of these rates to earn a riskless profit? Assume that the Pure Expectation Theory for interest rates holds.
The primary period had been 10 years, what would the compound growth rate have been then. What would you expect the sales to be after 16 more years.
What is the equilibrium output of such knives. Illustrate what is the equilibrium output of such knives.
Conduct research on the economic performance of United State of America over the last ten years from 2004 to 2013, applying the macroeconomic indicators of real GDP, real GDP growth rate, real GDP per capita, unemployment rate and inflation rate to a..
How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive in..
On Wednesday, the exchange rate between the euro and the U.S. dollar was $1.20 per euro. On Thursday it was $1.18. Did the dollar appreciate or depreciate against the euro? By how much?
Derive the golden rule savings rate for this economy. (Hint it will be 35 percent) What would be the new level of steady state y, c, s, k if the economy moved to the golden rule savings rate?
What is the distinction between net investment and gross investment? Which is the total amount spent on investment in a given year? Which is the change in the capital stock?
Elucidate and distinguish between the concentration ratio and the HHI. What ate the limitations of these measures within the context of the pharmaceutical industry.
Suppose you work for a drug manufacturing corporation that holds a patent on Hair Grow, the world most effective drug for restoring hair.
It goes on to say that using these three tools, the Federal Reserve influences the demand for and supply of balances that depository institutions hold at the Federal Reserve Banks, and in this way, it alters the federal funds rate. The federal fun..
The unemployment rate is a deceptive indicator of the current and future state of the economy. How does the timing of lay off and hiring decisions made by companies describe the misleading characteristic of this indicator?
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