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This question is a variant of the previous problem that approaches things in the way that a fiscal policy plan ner might. In an economy whose consumption function and tax function are as given in Test Yourself Question 1, with investment fixed at 320 and net exports fixed at 280, find the value of G that would make GDP equal to 1,800.
In many countries the capital owned by nonresidents is taxed. What are the effects of such tax exporting? Is it profitable to subsidize capital owned by nonresidents?
Norway has a long coast that borders on the north Atlantic, making it relatively more productive in fishing. Sweden has a greater endowment of capital, making it relatively more productive in automobiles.
Use this approach to discuss the convexity of the indifference curves for the following three functions.
Calculate the total revenue and total economic profit for this pizza shop at each level of output. Calculate the pizza shop's marginal cost and marginal revenue at each level of output.
The classical approach says that monetary changes directly affect the price level,the Keynesian approach states that changes in money affect the economy only indirectlythrough changes in interest rates and investment.
The first is a 15-year to maturity bond with a 6.60% coupon rate, paid annually. The price of this bond today is 100% of face value. The second bond is a 20-year to maturity bond issued 7% coupon rate, paid annually. The price of this bond is 101...
Should it invest in doubling production capacity?
a) Calculate the coefficients for price, advertising, income and cross-price with soda pop. b) If the current company cost for a bag of popcorn is $0.45, including cost of corn, cost to pop it and the bag, is this the profit maximizing price?
Trace through how each of the steps in the analysis has to be changed. Show the equilibrium in the labor market. What happens to real wages, employment, GDP, and saving if the labor supply function shifts to the right?
Did Australian GDP grow faster than expenditures on social security and welfare? You can get Australian Nominal GDP data at the Reserve Bank of Australia's website as well, under "Search for Statistics.
The fixed costs at Harley Motors are $1 million annually. The main product has a revenue of $8.50 per unit and $4.25 variablecost. Determine (a) the break-even quantity per year, and (b)the annual profit or loss if 200,000 units are sold and if 35..
Suppose worker productivity increased at the rate of 1.9% per year. If the labor force grew by 1.5% per year, what rate of increase in RGDP would be sustainable without increasing inflation pressures
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