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In recent years, consumption spending by households has accounted for about 70% of the total spending (aggregate demand) in the U.S. economy. There are 5 determinants that might shift the consumption schedule of the economy, household wealth; household expectations; the real rate of interest; household debt; and taxes. How do you believe they are affecting the consumption schedule of the U.S. economy today (2009)?
Draw a diagram showing the current situation of the firm. In addition to the above information, suppose the price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
Compute total revenue, marginal revenue, total cost and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?
The impact of changing from a federal income tax to a federal consumption tax would be:
Which of the following items are included in the calculation of GNP in the UK, and which are excluded?
Construct a table shoeing Grey's marginal sales per day in each state. Calculate Grey's maximum monthly commission income.
Discuss how each of the following developments would affect the supply of the money, the demand for money, and the interest rate. For each case, describe what happens in closed economy and in small open economy. Describe your answers with diagrams.
Lawn mowing services are supplied by a host of individuals in the suburb of Westbrook-Algebraically determine the equilibrium industry price/output combination.
Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate.
Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?
Using the following schedule, define the equilibrium price and quantity. Explain the situation at price of $10. What will occur? Discuss the situation at a price of $2. What will occur?
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