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2. (a) Show your calculations.
• Given the consumption equation, C = 220 + .75Y. Calculate the numerical value of the break-even level of income, YB.
• Suppose that Investment spending of 420 is added (I = 420). Find Ye1.
• Then suppose that we find that ΔI = 40. Find Ye2.
• What is the multiplier effect of ΔI = 40? Explain and show this relationship.
3. (a) Calculate the numerical value of equilibrium level of income (Ye) if
C = 485 + .90Y, I = 560, G = 854, EX = 235, and IM = 340. Show your calculations.
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Assuming that you get a summer intern job and a recession began while you are there. Write a memo to your boss, who is a member of Congress.
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
Over half of the nation's lettuce comes from three California areas: the Imperial Valley in the southeastern corner of the state, the area centered around Huron in FresnoCounty, and the area around Salinas in MontereyCounty. The Imperial Valley ha..
A topic that reflects one of the following: government regulation of environmental issues in the wake of disasters; government regulation of financial markets; government nationalization or partial-nationalization of a business often left to priva..
Compute the short-run profit maximizing level of labor and capital demand. Compute the long-run profit maximizing level of labor and capital demand.
All firms in a Cournot monopolistically competitive industry have the same cost function C(q) = 25 +10q. Calculate the equilibrium price, firm output, total output and number of firms in the industry.
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Illustrate economic evidence is required to determine whether there are long-run increasing returns to scale in banking.
The baker uses the flour to make bread & sells the bread to households for RS. 6.00. The households eat the bread. What is the value added in each stages of production?
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