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Consider a close economy with the following consumption and investment functions:C = 250 + 0.67Y I = 150 + 0.07YAssume the government expenditure G0 is 80.
(a) Write the model in matrix form and determine the equilibrium values of national income, consumption, and investment.
(b) From the matrix of coefficients, determine the model's multiplier.
(c) Assume the government expenditure changes to 90. Determine the new equilibrium values of Y, C and I .
Again, assume that prices and wages in the economy adjust quickly so that all the markets in the economy are always in equilibrium. Suppose government expenditure increases. What is the impact of this shock on P (hint. Use the equation you solved ..
the government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues
Find at least two business research peer-reviewed articles - Write a 700- to 1,050-word paper in which you practice identifying the critical first stage of developing any research study:
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Use the Keynesian AD-AS model to answer the following questions. Draw the effects of a recession caused by a decease in aggregate demand. For simplicity, assume that your economy starts at general equilibrium.
for the following set of scores compute the range the unbiased and the biased standard deviations and the variance. do
Suppose a monopolist producing Q units of output faces the demand curve P = 20 - Q. Its total cost when producing Q units of output is TC = F + Q2, where F is a fixed cost. The marginal cost is MC = 2Q.
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Determine ways your current employer(restaurant owner) could leverage organizational culture to improve productivity and employee satisfaction. Provide specific examples to support your response with 1250 words and 4 resources from current co..
The substitution bias in the customer price index refers to the:
This is a challenging question and involves algebraically solving system of two equations given by AD abd AS curves. The equations for the curves are given through the following:
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