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Assume that when an economy has a GDP of $500, Consumption is $550. The MPC is .75. Investment is 25. Begin the problem by setting up an Income/Consumption Schedule like the one on page 190 of your text. Set up only the first two columns (1) and (2).
1. Graph the Consumption Function.
2. Add Investment to the graph.
3. What is the multiplier? (Use the formula on page 203)
4. What is the Break-Even level of Income? (Do not include Investment)
5. What is the Equilibrium level of Income? (Include Investment)
6. What would be the new equilibrium in this economy if Investment increased by $12?
Resource demand curves slope downward because?
What can you infer about expected change in the exchange rate between the Canadian dollar and the U.S. dollar? A friend proposes a get-rich-quick scheme.
q. a firm in a purely competitive business is currently producing a 1000 unitday at a total cost of 450. if the firm
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (P = 1.0 is the SRAS Curve, in other words). The aggregate demand curve is Y = 3(M/P) and M = 1,000. If the e..
According to the monetarist view,
If the Fed raised the reserve requirement, the demand for reserves would
Use the 2007 numbers in the first column to compute, for each of the four countries, the percentage gap between the steady-state ratio.
Suppose you purchase a $1500 laptop, a three-year asset, and sell it the next year for $400. What is the change in net cash flow in the year of sale when your tax rate is 40%?
Explain how should the United States Supreme Court interpret the United States Constitution.
The 2 firms form a cartel & arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits.
One tractor to be considered is a Montana. It has an initial cost of $34,000 and an annual maintenance of 175 with a salvage value of $12,000. It's useful life in years is 18. What is the value/cost closest to the annual worth of the Montana tractor ..
each job this auto body repair shop handles is a special order job. What type of costing method would this auto body repair shop most likely use.
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