User Account

All Pages

What is the equilibrium level of income

Assignment Help Microeconomics
Reference no: EM13139972

!. In the Keynesian cross, assume that the consumption function is given by:

C=200+0.75(Y-T)

Planned investment is 100, government purchases and taxes are both 100.

a. What is the equilibrium level of income?

b. If government purchases increase to 125, what is the new equilibrium income?

c. What level of government purchases is needed to achieve an income of 1,600?

2. Business executives and policymakers are often concerned about the competitiveness of American industry (the ability of U.S. industries to sell their goods profitably in world markets).

a How would a change in the nominal exchange rate affect competitiveness in the short run when prices are sticky?

b. Suppose you wanted to make domestic industries more competitive but did not want to alter aggregate income. According to the Mundell-Fleming model, what combination of monetary and fiscal policies should you pursue?

Reference no: EM13139972

Questions Cloud

Problem related to loan covenants : Loan covenants are used for which of the following reasons?
Conjectures of guilty bystander by thomas merton : What is your response to the quotation above? No matter what your religious faith may be, what is your present viewpoint toward our shared task? Will your present attitude enable you to maximize the enrichment and learning we are hoping to share?
Describe how the equilibrium is maintained : Define stable equilibrium in population genetics (1). Describe two ways by which natural selection can lead to a stable equilibrium over several generations (2). Give an example of one of them (1). Describe how the equilibrium is maintained (1).
Determine the cost recovery for current year : Determine the cost recovery for the current year. Debra does not elect immediate expensing under S179.She elect not to take additional first year depreciation.
What is the equilibrium level of income : How would a change in the nominal exchange rate affect competitiveness in the short run when prices are sticky and business executives and policymakers are often concerned about the competitiveness of American industry
How percentage likelihood of successful negotiation change : How does the percentage likelihood of a successful negotiation change over the course of time? Use the statistical data to inform the plan and the course of action the department will take in this hostage situation.
Identifying three analytical procedures : Identify three analytical procedures that an auditor might perform with respect to plant assets and explain how they might assist in identifying potential misstatements.
Write a narrative essay on "most memorable trip". : write a narrative essay on "Most Memorable Trip".
What type of embezzlement scheme does this appear to be : The auditor traced the payment through the entry records of May 11 and found that the payment had been made with cash instead of a check. What type of embezzlement scheme does this appear to be, and how does that scheme operate?

Reviews

Write a Review

Microeconomics Questions & Answers

  Construct a scatter graph

Construct a scatter graph showing the advertising and sales relationship over the last twelve months and using multiple regression, conduct an analysis of the firm's sales revenue, consumer incomes, and advertising.

  What level of biomass generates this amount of harvest

What is the maximum amount of harvest that can be sustainably achieved in this system? What level of biomass generates this amount of harvest?

  Multiple choice questions - supply and demand

Are you in favor of either deficit spending on the part of government or one of a balanced federal budget and budget surpluses?

  Investigations of antitrust behavior

The Microsoft antitrust trial (United States vs. Microsoft) has been one of the biggest investigations of antitrust behavior since the turn of the century. You are supporting the Government, research and present a cohesive argument to the other si..

  Long-run supply curve in a constant-cost industry

Long-run supply curve in a constant-cost industry is linear and shut down because it will no longer be earning a normal pro?t.

  Draw a standard supply and demand diagram

Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.

  Economic structure and possible future actions of opec

You have been contracted by an economic consulting company to estimate the economic structure and possible future actions of OPEC, Organization of Petroleum Exporting nations.

  Write you opinion after reading paragraph

If our example patron was a teenager, it's likely the power need that he expressed was a normal teenage reaction to a parent interfering in his life. In additional library visits by his choice, he might reveal himself as achievement motivated. If tha..

  Question based on market concentration

Choose any firm and think about its buying and selling activities -everyone buys and sells, or at least "procures" and "supplies", or otherwise participates in exchange transactions.

  Equilibrium relative-supply and demand

Suppose that the market for radios is perfectly competitive and there is the simultaneous increase in supply and demand. What can be said about the new equilibrium relative to one before the shifts in supply and demand occurred?

  Derive the profit function

Consider the problem of maximizing the profit function (pi)= pY -wL subject to the production function Y= L to the alpha (as the exponent) where alpha E (epsilon) (0,1).

  Differences between fixed and variable taxes

Assume that the government decreases spending by one hundred billion dollar. What happens to aggregate demand and discuss the differences between fixed and variable taxes.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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