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The table below includes data for a one-year period required to calculate GDP for this economy. All figures are in billions of dollars.
Wages and salaries 3029
GST remittances 107
Exports 32
Gross investment 537
Depreciation 82
Consumption expenditure 2808
Government subsidies to firms 51
Business profit 423
Imports 35
Interest and investment income 276
Government purchases 524
What is the value of GDP, as calculated from the expenditure side?
Suppose that, for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants for the production of three different quantities of ditc..
The world market demand for iron ore exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for iron ore in the world. Assuming iron ore is a(n) normal good, a(n) decrease in price of a relate..
Along the long-run Phillips curve, the unemployment rate ________, and the inflation rate ________.
Assuming the classic supply and demand model applies to the market in italics ,graphically illustrate how the following events would impact the market. Be sure to note the specific DETERMINANT that aided you in your graphical analysis. Annie Vance Wi..
What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a dangerous flu by those who are not vaccinated against it? Assume the vaccine is 99.9% effective.
A firm is producing optimally (maximizing profits) when the price level = $1. It pays a wage rate of $10 per hour to labor and rents capital for $8 per hour. It sells its product for $20 per unit. At its current production point we can assume that it..
Expectations and consumer confidence are important in determining fluctuations in aggregate spending. In your opinion, what is the present status of consumer confidence.
Make a listening guide for a piece of music you like. Use the format of the textbook's listening guides as a guide. Be sure to listen to the piece without any distractions why you are writing the guide. Write what you enjoy this piece of music (be sp..
The cost of maintaining a public monument in Washington, D.C., occurs as periodic outlays of $1,000 every year and $5,000 every 5 years. If the first outlay is now, the capitalized cost of the maintenance at an interest rate of 10% per year is closes..
In this economy we have an MPC equal to 0.80, Autonomous Consumption of $600 billion, Planned Investment (I) of $1,000 billion, Government Spending (G) of $1,200 billion and Net Taxes (T) of $1,000 billion. Determine the Equilibrium level of Aggregat..
What are the average money holdings when the individual makes the optimal number of trips to the bank?
Why might a government entity (say the California Earthquake Authority) prefer a cat bond with a parametric trigger but an insurance or reinsurance company (say American Family) prefer a cat bond with an indemnity trigger?
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