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In the Keynesian cross model, assume that the consumption function is given by
C=120+0.8*(Y-T)
Planned investment is 200; government purchases and taxes are both 400.
Graph planned expenditure as a function of income.
What is the equilibrium level of income?
If government purchases increase to 420, what is the new equilibrium income? What is the multiplier for government purchases?
What level of government purchases is needed to achieve an income of 2,400? (Assume taxes remain at 400.)
What level of taxes is needed to achieve an income of 2,400? (Assume government purchases remain at 400.)
What about longer term dynamics of the global economy? What might be those benefits or losses
Given the following MV information, what is the optimal allocation of care according to the Paretean criteria, when the marginal cost of care is constant at $100? Person A Person B Quantity of Care Consumed MV Quantity
The Bureau of Economic Analysis and access the BEA interactively by selecting "National Accounts" and then "National Income and Product Account Tables." Select "Frequently Requested NIPA Tables," and find Table 1.1.1 on GDP.
Who benefits from a tariff or quota. Who loses. Illustrate what are positives and negatives of protectionist trade policies on federal government's part. Which policy is best right now.
Could the Fed affect the money supply by buying and selling goods or services other than bonds? For example, suppose the Fed decided to implement an expansionary policy.
q1. elucidate how higher saving leads to a higher standard of living. illustrate what might deter a policymaker from
Define asymmetric information. Distinguish between hidden characteristics and hidden actions. Which type of asymmetric information contributes to the principal-agent problem?
q.although economists routinely use gross domestic product gdp and other national income and product statistics in
Assume that before the price of X2 fell, Fred had exchanged all of his inheritance of X1 and X2 for money, planning to use the money to finance his purchases later, explain how much of X1 & X2 will Fred consume after P2 fell to 1.
Why is the policy necessary? The welfare of consumers, producers, and society (the winners and losers) before and after the policy.
As a postgraduate student of economics I've been trying to expand my mathematical "toolset". While doing so I've talked to engineers, physicists and mathematicians, many of which have disdained the use of mathematics in economics. Their arguments var..
q.frank knight has a job as a sales manager earning 100000 per year and he is deciding whether to purchase a bakery
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