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Suppose the economy is characterized as follows:
AE = C + I + G + (X-M)
C = 800 + .75(Y – T) - 30 (r)
I = 600 – 50(r)
G = 300
X- M = -25
T = 80
r = 5
Price level P is fixed at 1 (P=1)
Suppose the investment demand function changes and is now I=700 – 50(r).
The new value of equilibrium output is
q1. timber companies in the united states cut down many trees on openly owned land. describe likely efficiency of
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Suppose an economy that is initially at full employment faces a substantial fall in exports.
Aggregate demand and aggregate demand curve. The three reasons that explain the downward slope nature of the AD curve. Recessionary and inflationary gaps: please use AD/AS curves to show. What is the effect of sticky wages in the economy? What is eco..
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In what sense can this be said to be unfavorable to the trade partner. Does this mean that the welfare of the trade partner has definitely declined.
When asked in a television interview what she felt she was missing out on because she spent most of her time training for the Olympics, a rower answered, “A normal social life.” She also revealed that she had given up a job that paid $20,000 per year..
Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Write the equation for the medical isocost of AFC.
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