User Account

All Pages

Compute private saving

Assignment Help Macroeconomics
Reference no: EM131090634

1. A production function can exhibit increasing, constant or decreasing returns to scale. Describe the meaning of this statement using a simple production function Y = F (K, L), where K is capital and L is labor.  Why might it exhibit increasing or decreasing returns to scale?

2. Consider an economy described as follows:

Y = C + I + G

Y = 10,000

G = 3,000

T = 2,200

C = 1500 + 0.75(Y - T)

I = 1000 - 75r

a. Compute private saving, public saving and national saving in this economy

b. Fin the interest rate that maintains equilibrium in the economy.

c. Suppose that G is reduced by 500. Compute private saving, public saving and national saving and new equilibrium interest rate

d. Suppose that T is increased to 3,000. Compute private saving, public saving and national saving and the effect on the equilibrium interest rate.

Reference no: EM131090634

Questions Cloud

What would consider two challenges of reading shakespeare : When a writer wants to reveal specific problems the writer has with society, the writer will sometimes use a technique called irony. Review the reading on irony in this unit. Then, find and explain two examples of irony in Lysistrata. In what way ..
Active monetary policy and passive monetary policy : Explain the difference between active monetary policy and passive monetary policy, commenting on the Federal Reserve's use of monetary policy since the early 1980s.
Produce a new system for future installations : The new computer-controlled conveyor belt is an exciting project that moves and positions items on a conveyor belt with a high degree of accuracy (
Impact of problem on work environment and patient outcomes : How does each article describe the nature of the problem, issue, or deficit you have identified and does each article provide statistical information to demonstrate the gravity of the issue, problem, or deficit?
Compute private saving : Suppose that G is reduced by 500. Compute private saving, public saving and national saving and new equilibrium interest rate Suppose that T is increased to 3,000. Compute private saving, public saving and national saving and the effect on the equi..
Producing the optimal number of cell phones : Although the last 3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of ..
How much will each firm produce in the long-run equilibrium : Suppose that sprockets are a perfectly competitive, constant cost industry with a large number of identical firms who have a long run total cost curve of TC(Q)=Q^3−4Q^2+10Q. The market demand curve is Q^D=250−2P. What is the long-run equilibrium pric..
Why do you say law enforcement should not be involved : Should local law enforcement be playing a role in the fight against terrorism? If so, what role should they play? If not, why do you say law enforcement should not be involved?
What is the maximum bandwidth of this network, in bytes/s. : what is the maximum bandwidth of this network, in bytes/s.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Discussing the employment relations issues

Write a report to the President of the Fair Work Commission discussing the employment relations issues that can be identified in the industrial dispute between the Maritime Union of Australia and Patrick Stevedores Holdings Pty Ltd in 2015 and 201..

  Ratio of income to capital in two countries

1. What is the ratio of income to capital in these two countries? 2. What is the saving rate in country Z? 3. What is the growth rate of capital per worker in country A?

  What nation did you choose and why

What nation did you choose and why does this county interest you. What are some facts about this country.

  Does confidence interval include the value suggested by ncaa

Does the 99 percent confidence interval include the value suggested by the NCAA? Interpret this result. Suppose you decided to switch from a 99 to a 95 percent confidence interval. Without performing any calculations, will the interval increase or..

  Suppose the price of the good is initially $100

Suppose the price of the good is initially $100. What is the price elasticity of demand at this point? (Hint: What happens to the quantity demanded when the price drops by 10%?)

  Draw the graph and label to identify the market structure

Assume your boss purchase out every single pizza store in the US. Your cost-demand conditions are as follows: profit maximizing quantity - 60 pizzas; price - 20$ per piece;

  Despite an abundance of these resources

1.Topic: When you travel to South America, you encounter countries that have a vast amount of natural resources, and very large labor forces. However, despite an abundance of these resources, you also see a lot of poverty. Can you provide an econo..

  What is the balance at the end of year 13

Assume that $5000 is deposited today, three years from now, six years from now, nine years from now, and twelve years from now in a savings account which earns 5% annual interest. What is the balance at the end of year 13?

  Differences in national income and gross national product

Determine the difference among National Income, Gross National Product, and Gross Domestic Product? Why do most countries now use GDP as a measure of national output?

  Expansionary or contractionary if the fed wants to keep

if the fed wants to keep real gdp at its potential level in 2015 should it use expansionary policy or contractionary

  Suppose that a consumer has a cobb-douglas utility

suppose that a consumer has a cobb-douglas utility functionuab a? b1-?where a and b are consumption of environmental

  What might keep prices from moving to the equilibrium

Are retail gasoline prices essentially equilibrium prices? Why or why not? In most markets, are prices typically at the equilibrium? Why or why not? What might keep prices from moving to the equilibrium?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd