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An economy has the following consumption function: C=200+0.8DI The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are$100. Investment is $600. Find equilibrium GDP. What is the multiplier for this economy? If G rises by $100, what happens to Y? What happens to Y if both G and T rise by $100 at the same time?
Here is a "dynamic technology" question - When it comes to automobile production it is an accepted fact that American automakers did not readily adopt and use Asian and European technologies in the production of cars. The result was a loss of global ..
At a separating perfect Bayes-Nash equilibrium, what is the maximum amount of advertising that a restaurant conducts. What is the minimum amount.
Express Illustrate what will happen also why to the firm's average fixed costs, marginal costs, average costs also profits as the firm makes its choices.
Assume which, in the efficiency wage model, it becomes more difficult for the ?rm to distinguish high-ability workers from low-ability workers in the labor market.
Estimate the owner's decision to start Sound Devices. Are any of the above costs likely to be one-time costs? If so, how would this affect your answers. Explain.
Elucidate Adam Smith in The Wealth of Nations asserted that the pursuit of self-interest by competitive firms promoted the interests of society.
Illustrate what is the marginal cost of one of the 50 newspapers folded also bagged by the fourth student.
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
Your firm is considering the purchase of an old office building with an estimated remaining service life of 25 years.
How many people should the owner hire if he pays each worker $6/hour? c. Suppose he considers hiring students on a part-time basis for $4/hour.
One Tuesday the government announces two new policies. First, you must pay a head tax (lump sum tax) of $3 a day. Second, the government will subsidize the purchase of apples (but not of oranges) so that the price of an apple falls to 50 cents. Draw ..
it can sell its output for $25 each. Illustrate what is break-Explain how your work both graphically and algebraically.
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