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Suppose that you have following open economy where C = 10 + 0.8(Y-T); I = 10; G = 10; T = 10 and imports and exports are given by IM = 0.3Y and X = 0.3Y* respectively where Y* is foreign output.Then solve for the equilibrium output in the domestic economy given Y*. What is the multiplier effect for this open economy? What happens to Y and the trade balance over time if Y*'s economy grows faster than Y's economy. Assume the domestic government has a target level of output of 125 and the foreign country does not change G*, what increase in G is necessary to achieve the target output in the domestic economy? What would be the increase in G and T needed if the government wanted to keep a balanced budget?
A firm is using 20 units of labour and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labour is 50 and the marginal product of capital is 40.
Suppose that a firm is a perfectly competitive industry has the following total cost schedule: Compute a marginal cost and average cost schedule for this firm.
Is this type of bonus structure in the interest of the company? Use theoretical and graphical insights from chapter five of the textbook to explain your reasoning.
Illustrate what is the reserve ratio if the bank has $160 million worth of checking deposits, $32 million worth of reserves in deposits at its federal reserve district bank, and $8million worth of reserves in vault cash.
Illustrate what are the benefits and drawbacks of dynamic pricing for that particular company.
Explain how are people worse off when the price level rises as fast as their incomes
Consider a product with a supply function Q 1 = β 0 + β 1 + u 1, a demand function Q d i =y 0 +u i d . Show that P i and u s d are correlated.
Expalin how the actions of a mine operator can spend $5 million to free a trapped miner.
The marketplace is saturated with modems, and your sales department has been able to identify only one potential buyer of your modems.
Explain how much should it be willing to pay today for the office complex.
Which of the following is true for perfect competition, monopolistic competition, and monopoly?
Illustrate what are economic influences which affect the organization in a negative way.
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