What combination of actions would be most consistent

Assignment Help Econometrics
Reference no: EM13200919

You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net exports = $25 billion. If the full employment level of GDP for this economy is $600 billion, then what combination of actions would be most consistent with the goal of achieving full employment?

Reference no: EM13200919

Questions Cloud

Compute what is that height in meters : how many seconds after the rock is thrown will it reach maximum height, and what is that height in meters? how many seconds after the rock is thrown will it reach the ground?
Discuss the concept of tax shields : Compute all cash flows, discount rates and determine if the project should be undertaken and show both the equations and the variables, and show the equations with the variables inserted into the equations.
Difference between shutting down and going out of business : You are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate.
State the results are very close to fitting a normal curve : On standard IQ tests, the mean is 100, with a standard deviation of 15. The results are very close to fitting a normal curve. Suppose an IQ test is given to a very large group of people. Find the percent of those people
What combination of actions would be most consistent : (1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net exports = $25 billion. If the full employment level of GDP for this economy is $600 billion.
Explain how multiplication and division of rational : describe how multiplication and division of rational expressions can be done. Provide examples to support your explanation.
State how long does it take fred to complete : How long does it take Fred to complete 20% of his caches? This time is the Easting of the co-ordinates of the cache in minutes.
Decscribe is the outcome a nash equilibrium : Two firms, Rattler and Sidewinder, produce and sell snakeskin cowboy boots. The following payoff table represents profits in millions of dollars for a simultaneous pricing decision between the two firms.
Goal of the government programs : This is not a goal of government programs To enforce private property rights ,To prohibit natural monopolies or else.

Reviews

Write a Review

Econometrics Questions & Answers

  Find the conditional probabilities

Suppose a random experiment can be represented by 2 sets of events ,Ai and Bj, with each pair of sub events (A1 and A2, and B1, and B2) being mutually exclusive and collectively exhaustive.

  What will be the depreciation charges

if the cost basis for a macrs 5-year property is $100000 and the equipment is sold for $20000 after 5 years of beneficial use, what will be the depreciation charges the 1st and 5th years and the book value at the end of the 5th year

  What are the conditional input demand functions for l and k

f(L,K) = ln(L+1) + ln(K+1) (1) Does this function has any corner solutions? If so, what are the values (2) For what values of (w,r,y), is there an interior solution for cost minimization (3) Find all possible interior solution for (L*,K*)

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Does ben consume equal amounts of x and y

Suppose Ben has a utility function U(x,y)= 4 * x^(0.5) * y^(0.8) The price of x is 2 dollars and the price of y is also 2 dollars. Explain WITHOUT USING ANY MATH AT ALL, just in a few words, which good is consumed more. Does Ben buy more x than y.

  Find its book value after six years using the macrs method

An asset has an initial cost of $200,000, a salvage value of $25,000, and a recovery period of seven years. a. Find its book value after six years using the MACRS method. b. Find its book value after six years using the double declining balance metho..

  Determine the 4 equal annual withdrawals

Determine the present worth of 5 annual deposits of $1,200 at the end of years 1 through 5, followed by 4 equal annual withdrawals of $700 at the end of years 4 through 7. Note that both years 4 and 7 will have a depsoit and a withdrawal. Interest..

  Determine what is consumption per worker

Assume that the country possesses 50,000 units of capital and 25,000 units of labor. What is Y What is labor productivity computed from the per-worker production function Is this value the same as labor productivity computed from the original prod..

  What is the present worth of the savings per unit

A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the ..

  What was the companys year-end debt-to-asset ratio

J.C. Olson & Co. had earnings per share of $8 in year 2006, andit paid a $4 dividend. Book value per share at year's end was$80. During the same period, the total retained earningsincreased by $24 million. Olson has no preferred stock, andno new c..

  Determine the rate at which a nations income per person

according to solows model of economics, what determines the rate at which a nations income per person grows based on that model, what sort of public poicies would be able to increase the growth rate in income per person

  Find market demand function for donuts

Where PX is price of donut; PC is price of coffee; M1 is Ross's income; M2 is Jennifer's income. Suppose Price of coffee is $10, Ross's total income is $1000 and Jennifer's total income is $2000. A) Find market demand function for donuts. If marke..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd