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Q. Consider the following IS/LM model for a closed economy
C=400+0.4yd ,I=200+0.3y-2000i, G=360,T=400 ,m/p=4y-100000ims=2600 (10 marks)i.Derive the IS equationii.Derive the LM equationIII.Solve for equilibrium real outputIV..Solve for the equilibrium interest ratev.Solve for equilibrium value of consumption and investment
Calculate the initial level of output per person, the growth rate of output per person also the level of output per person after 100 years.
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
Assume that all other banks hold only the required amount of reserves.
assume that the total value of the following items is 780 billion in a specific year for upper mongoose net exports 50
According to the terms of the contract, the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
. Abstracting out this income effect would leave the quantity of X unchanged. On the other hand, beyond the switch point, only Y is consumed and no changes in Px will have any income or substitution effect.
Illustrate what new decisions will you make regarding production levels and pricing for your Widget facility.
What will happen to the number of firms, the market supply, and the price of the good as we move from the short run to the long run?
Assume that private schools want to maximize profits and that the market for private schools is perfectly competitive.
What output level will the competitive firm choose in order to maximize its profit? What is the price at this output level?
The municipal swimming pool charges lower entrance fees to local residents than to non-residents. Conclude that non-residents must have for swimming at the pool than residents.
you relate concepts in this week's readings to a prior real world experience. Experience does not necessarily have to be work experience. Examine market equilibrating process in relation to your experience.
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