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Suppose that national income is initially at its equilibrium level when desired investment falls. We would expect
- a fall in national income, but not by as much as the fall in desired investment- no change in national income even though desired investment spending falls- an increase in national income by an amount equal to the reduction in investment spending-a fall in national income by some multiple of the fall in desiredinvestment spending
Baby copy company is a worldwide producer of copy machines. It manufactures 10 different copieers, ranging from low-end desktop copiers that sell for a few hundred dollars to high volume document machines that retail for over $200,000.
Calculate the equilibrium level of real GDP. Does the government succeed in increasing real GDP and calculate the equilibrium level of real GDP.
Then make a list of actions the Japanese government must accomplish to restore the economy and provide health and safety to the citizens. Keep in mind the limited resources available and priorities of each restorative action. What are the opportun..
All firms in a Cournot monopolistically competitive industry have the same cost function C (q)= 25 + 10q. Compute the equilibrium price, total output, firm output and number of firms in the industry.
Compare and contrast between the economic effects of increasing spending versus reducing taxes.
What is the policy credibility and how is it relevant to the problem of reducing high inflation? How is credibility related to the time inconsistency problem?
How would you characterize the market for crude oil production? Explain your answer. Explain the long run profit behaviour of firms in this kind of industry.
Draw a graph of the UK labour market that shows the demand for labour, the supply of labour, and the real wage rate in 1973 and 2003. Draw a graph of the UK production function in 1973 and 2003. Make sure your graph shows potential GDP in both year..
What will happen in the next 50 years to the relative demand for each of the following: food, housing, energy, fuel, water?
A purely competitive firm's output is such that its marginal cost is $4 and marginal revenue is $5. Hint: remember that MR = P for Pure Competition and the Profit Maximizing rule. Assuming profit maximization, the firm should
Describe the differences in writing covered and naked calls. Are risks involved in the two strategies similar or different.
Suppose the Fed decided to purchase $30 billion worth of government securities in the open market. What impact would this action have on the economy?
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