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Give a Share of GDP (percent), such that C=69.9, I=19.0,G=15.3, X-M= -4.5
If consumption in the changed to 43 while government expenditure and net exports remained constant, what would happen to investment as a share of GDP ? ( it does not need to sum to 100. Use the current sum as starting point.)
For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run
Illustrate what cost should each industry charge if it wants to maximize its profit. Why are costs and output of industries 1 and 2 same however different for industry 3.
the bursting of the housing bubble and the panic of 2008 caused both businesses and households to cut back on their
As a general rule, is it safe to assume that a lower interest rate will encourage significantly lower financial savings for all individuals? Explain.
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Elucidate why there is a relationship between price elasticity of demand and the effects on total sales revenue.
Assume that Densa Inc. falls 10 percent short of producing the profit maximizing output. Would a higher product price lead to greater output
Joe has never trusted banks and always kept his money in cash. Joe pulls out his money jar, discovers that it has $20,000 in it, and decides it is unsafe to keep that much cash. Joe stops at the Local
Illustrate what assumptions do you make in answering this question. Illustrate what distortions do you think would appear in economy if such a tax were introduced.
Suppose velocity is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Calculate the long-run rate of inflation according to the quantity theory of money. Suppose the growth rate of money rises to 10% p..
What effect wills an increase in interest rates have on supply and/or demand of unskilled labour. Would wage rates increase or decrease.
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 tirllion and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.
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