User Account

All Pages

What is the equilibrium output

Assignment Help Business Management
Reference no: EM131177100

Consider an economy with no government, imports, or exports, and with fixed prices andinterest rates. Let C = 150 + 0.60Y and I = 50.

a) What is the equilibrium output?

b) What is the value of the marginal propensity toconsume

c) What is the value of the multiplier

d) Suppose planned investment rises by 10 to I = 60. Calculate the new equilibrium outputin two ways. First, calculate the new equilibrium output using the multiplier from (c).AE (450) C1 + I + G1 C0 + I + G0 C1 G0 Y Y0 Y1 7Second, calculate the new equilibrium output using the same procedure as you did for (a),but with I = 60 instead of I = 50. Your answer should be the same under both methods.

Reference no: EM131177100

Questions Cloud

What are comparable real salaries : What Are Comparable Real Salaries? A job paid $50000 in 2002. The CPI in 1960 was 29.6, compared to 179.9 in 2002. In 1960, what salary would be comparable to 2002's $50000 in real terms?
Project being considered that has an initial cost : There is a project being considered that has an initial cost of $5,000. The first year profit is $500 and profits are expected to increase by 50% every year after that. Project costs are expected to be $1,000 for the first two years and then decrease..
Counter type and successive approximation analogue : Using their architecture,distinguish between counter type and successive approximation analogue to digital converter.
Describe the impact of telecommuting on energy conservation : Describe the impact of telecommuting on energy conservation, IT operational costs, "green computing", and shifts in telecommuters' lifestyles (e.g., parents, disability, etc.).
What is the equilibrium output : Consider an economy with no government, imports, or exports, and with fixed prices andinterest rates. Let C = 150 + 0.60Y and I = 50. a) What is the equilibrium output? b) What is the value of the marginal propensity toconsume c) What is the value ..
Find a minimal expansion as a boolean sum : Use K-maps to find a minimal expansion as a Boolean sum of Boolean products of Boolean functions that have as input the binary code for each decimal digit and produce as output a 1 if and only if the digit corresponding to the input is
Create a lesson plan that integrates language objectives : Create a lesson plan that integrates language objectives, content objectives, and best instructional practices for ELLs, as well as a method for authentic assessment.
Lump-sum increase in taxes : Within the classical model, suppose that there is a lump-sum increase in taxes, for example, $5 per person. Explain and illustrate (ie draw graphs that show) the effects of such a tax increase on each of the following (this does not mean you need ..
Company is thinking about investing in new project : A company is thinking about investing in a new project. The balance sheet reports that they currently have $36 million worth of long-term debt and $24 million worth of common equity. They also have 1.2 million shares of stock outstanding and the stoc..

Reviews

Write a Review

Business Management Questions & Answers

  An ideal inventory solution

Tim Balsimo, founder of Quality Pet Products, a wholesale distributor of pet foods to veterinary clinics and retail pet stores in six states, is a 20-year veteran of the pet food industry. Before starting Quality Pet Products, Balsimo owned a succ..

  Explain the three kinds of skill sets required to manage

Explain the three kinds of skill sets required to manage this industry. One set of enabling skills is described and two sets of management skills are also described

  Negotiation situation using different strategies

Describe a negotiation situation that employs different negotiation strategies and describe the negotiation processes

  Show employee evaluation process

Show the changes that you would make in this process and how these changes could lead to improved morale within the organization.

  Evaluate the concept of comparable worth summarizing the

evaluate the concept of comparable worth summarizing the arguments pro and con. what position do you take? pay special

  Enormous global markets for standardized consumer products

The emergence of enormous global markets for standardized consumer products - What actions can a firm take to minimize its global tax liability? On ethical grounds cans such actions be justified?

  What is a valid and enforceable agreement

What is a valid and enforceable agreement?

  Determining the external business environment

The external business environment within which New-man conducts its business is continuously changing. Classify the two (2) sub-sections of the external business environment and indicate (name) which sub-elements and/or sub-environments are releva..

  Show job design and scheduling for wal-mart

How would Forward and Backward Scheduling inform managerial decision-making in that organization and what are the benefits and difficulties of scheduling for the organization to implement this concept

  Determine if sickel should be hired - the strategy mogul

Determine if Sickel should be hired, the strategy Mogul should follow if Sicket is hired, also the expected value. Please shows all work also provide explanation?

  How did clarks save the company by using systems thinking

How did Clark's save the company by using systems thinking.- Identify three to five major concepts of system thinking and then explain how when applied they worked for Clark's and its competitors.

  Traditional classics on leadership course

Traditional Classics on Leadership course write a one- to two-page paper (250 to 500 words in length) on : How have notions of legitimate authority and followership changed across different periods of Western history?

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