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The following equations apply to an economy: C=400+.9(Y-T) I=250-50r (M/P)d=Y-300r You also know that government spending and taxes are 500 and the nominal money supply is 4000. The price level is 2. Make sure you simplify your equations. a) Derive the IS equation. b) Derive the LM equation. c) Solve for the equilibrium of the IS-LM. What are the values of the real interest rate and income?
full employment is without a doubt the ultimate goal of every nation however in spite of the failures of controlled
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is
Equipment purchased 2 years ago for $70,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Its performance was less tha expected and it was upgraded for $30,000 one year ago. If replaced the existing equipment will be sold..
Create a chart to classify and identify a cost driver for each of the costs provided in the text. The chart should be included as an appendix to the written report
VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that at the current per dose price, the elastici..
explain and categorize the cost of inflation. Because of inflation has risen, the L.L Bean Company decides to issue a new catalog quarterly rather than annually.
From the perspective of an executive with the firm, prepare a strategic plan to grow the business over the next three years. Your strategic plan must be future-oriented and must: Describe Porsche’s history and its 4Ps (Product, Price, Place, and Prom..
People buy insurance. The highest incidence of those without health insurance occurs in which age category? One result of asymmetric information in health insurance markets is
The demand for Pepsi is more elastic Than the demand for soda. The effect of taxing demanders are the same as taxing suppliers.
Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. Explain how sellers' costs, producer surplus, and the supply curve are related.
Identify opportunity cost of increase divestment. What will happen to future production possibilities if investment increases.
A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month.
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