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Consider an economy in which the consumption function takes the following simple algebraic form c = 300+0.75DI, and in which investment (I) is always 900 to 1,100 and net exports are always 100. Government purchases are fixed at 1,300 and taxes are fixed at 1,200. Find the equilibrium GDP. (Hint: Remember that disposable income is GDP minus taxes: DI = Y - T = Y - 1,200.)
1. Which economic system is best suited for handling a crisis of epic proportion (hurricane, flood, blizzard, forest fire, and so forth)? Why? 2. Describe and explain why a socialist system might be the best in responding to the needs of people st..
Suppose that rather than the declining demand assumed in Example 2.7, a decrease in the cost of copper production causes the supply curve to shift to the right by 40 percent. How will the price of copper change?
The CEO of Always Ready Round Tire has decided to open a battery division. He thinks that batteries would sell well with tires at their outlets and that Always Round's quality reputation will be transferred to the batteries.
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a value so high that there is no demand for the good.
Among perfect competition, monopolistic competition, oligopoly, and monopoly, how would you classify the markets for each of teh drinks.
a firm has total costs tc of 16000 over the next three months total for the 3 months - not per month of which 6000 are
Separate the bond market into municipal bonds and corporate bonds, if the President lowers the federal income tax rate by 5% and holding everything else constant.
suppose the production function for guitars is given byq lk - 4l2where q is the number of guitars manufactured per
given equationtc18q3-1.5q211.5qp37-0.01qdemandp10.01qsupplyquestions1. what would be the long run price and quantity
Consider two ways to protect your car from theft. The Club(a steering wheel lock) makes it difficult for a car theif to take your car. Lojack(a tracking system) makes it easier for the police to catch the car thief who has stolen it.
The details about three identical firms operating in Cournot competition are given. The demand curve with marginal revenue, profit maximization, optimum quantity, total demand and market price related questions are answered.
the u.s. economy has fallen into a recession. it is a severe and deep recession and one that some economic analysts say
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