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1. Suppose that: C = 500 + 0.8Y I = 900 G = 800 There are no taxes, and there is no international trade. A) Solve for the AE function and draw it on a graph with AE on the vertical axis and Y on the horizontal axis. Include a 45 degree reference line. B) Solve for equilibrium GDP and label it on your graph. C) Now suppose investment declines by 50, to 850. Draw the new AE curve, solve for the new equilibrium and label it. D) Explain in words why equilibrium GDP changes in (C) by more than the change in investment.
Calculate the equilibrium price and quantity that will prevail in a free market and calculate the price elasticity of demand and the price elasticity of supply at the equilibrium.
describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage.
Payments to the fund will be made quarterly, starting theee months from now. If the interest rate for the sinking funs is 8% compound quarterly, how much will each deposit be?
by 2012 actions by the federal reserve and other central banks had driven short-term interest rates close to zero. one
How do costs play into your everyday life? For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)
Suppose changes in bank regulations expand the availability of credit cards so that people need to hold less cash.a. How does this event affect the demand for money?
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to “ export its way out of trouble”.
suppose david spends his income i on two goods x and y whose market prices are p x and p y respectively. his
Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales revenue maximization theory as an alternative objective of the firm.
Graph shows number of workers along the horizontal axis and wages along the vertical axis. Coordinates are plotted to indicate a downward-sloping diagonal line
you are given the following equation for the real demand for money mpd .25y - 50 ra. compute the demand for money
In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit's city council is considering passing a statute that would give investment tax credits to auto manufacturers. Effecively, this wou..
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