No government and no external sector

Assignment Help Microeconomics
Reference no: EM13701866

Consider an economy with no government and no external sector. Autonomous consumption is equal to $10 billion, the marginal propensity to consume is .8 and planned investment spending is $150. What is the equilibrium level of GDP in this economy?

 

Reference no: EM13701866

Questions Cloud

Where does the ball hit the ground : A girl throws a ball at a vertical wall 4 m away. The ball is 2 m above the ground when it leaves the girl's hand with an initial velocity v0= (10i+10j) m/s. Where does the ball hit the ground
Find the y-component of the velocity of the package : A helicopter 9.00m above the ground and descending at 4.10m/s drops a package from rest (relative to the helicopter). find the y-component of the velocity of the package
Does the mpl for both countries graph : a. Does the MPL for both countries graph as you would expect? b. Say that country A originally had 1 unit of labor and country B had the rest. Then, migration is allowed. By how much does welfare improve?
What is the magnitude of the electric field produced by disk : A disk of radius 2.48 cm has a surface charge density of 5.03 μC/m2 on its upper face. What is the magnitude of the electric field produced by the disk
No government and no external sector : Consider an economy with no government and no external sector. Autonomous consumption is equal to $10 billion, the marginal propensity to consume is .8 and planned investment spending is $150. What is the equilibrium level of GDP in this econo..
Find how long does it take him to reach the bottom : A skier is gliding along at 4.8m/s on horizontal, frictionless snow. He suddenly starts down a 10 degree incline. His speed at the bottom is 15m/s. how long does it take him to reach the bottom
Electric utilities often practice second-degree price : Electric utilities often practice second-degree price discrimination. Why might this improve consumer welfare? Second-degree price discrimination might improve consumer welfare because, compared with single-monopoly pricing,
What is the magnitude of the coins displacement : A small coin, initially at rest, begins falling. If the clock starts when the coin begins to fall, What is the magnitude of the coin\'s displacement
Near monopoly in the operating system market : Many people say that Microsoft has a near monopoly in the operating system market, but argue that consumers are better off than if there were many competing operating systems. Why might they make such a claim?

Reviews

Write a Review

Microeconomics Questions & Answers

  Construct a scatter graph

Construct a scatter graph showing the advertising and sales relationship over the last twelve months and using multiple regression, conduct an analysis of the firm's sales revenue, consumer incomes, and advertising.

  Show the effects of the negative supply shock

On Sunday October 23rd, Eastern Turkey was hit by a strong earthquake. Analyze the effects of this temporary negative supply shock on the real output and real interest rates using an IS-LM model. b. Show the effect of this negative supply shock.

  Discuss several economic events

Explain the predicted impact, other things equal, on the terms of trade of developing countries of relatively slow growth in demand for developing countries goods by developed countries combined with relatively rapid growth in demand by developing..

  What is the long-run total cost function

Suppose the production function for oranges is Q = k^1/3 L^1/3. What is the labor demand function when Q = 4 and r = 9 ? What is the capital demand function when Q = 4 and w = 4 ?

  How large an investment in the automation project

A hospital would replace five personnel that currently cover three shifts per day. 365 days per year. Each person earns $35,000 per year. Company-paid benefits and overhead are 45% of wages. Money costs 8% after income taxes.

  What will be the LR equilibrium number of firms in industry

Consider a competitive industry with a large number of firms, all of which have identical cost functions c(y)=y2+1 for y>0 and c(0)=0. Suppose that initially the demand curve for this industry is by D(p)=52-p. (The output of a firm does not have to b..

  How could new manager of beta corporation improve efficiency

Gamma Corporation, one of the firms that retains you as a financial analyst, is considering buying out Beta Corporation, a small manufacturing firm that is now barely operating at a profit.

  First-degree price discrimination

First-degree price discrimination- occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased. results in the firm extracting all surpluses from consumers.

  A policy of maintaining a fixed interest

A policy of maintaining a fixed interest rate will have the greatest stabilizing effect on output when money demand is

  How will the birthrate be affected by policies that reduce

In recent years, both the personal exemption and child tax credit have been increased in the United States. According to the basic principles of economics, how will the birthrate be affected by policies that reduce the taxes imposed on those with chi..

  Government mandates that firms supply a particular benefit

When the government mandates that firms supply a particular benefit, it is usually the case that . (We exclude the case that cost is less than valuation)

  Relationship between scarcity-choice and opportunity cost

Explain the relationship between scarcity, choice and opportunity cost.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd