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The consumption function is given by:C=250+0.75Yd.
A. What is the multiplier in this economy?
B. Assume that the government spending increases by 100. By how much will equilibrium output increase?
Compute the balance in your retirement account when you will be 25, 30, 40, 50, and 65 years old assuming the average annual rate of return is 6%. Assume there are no deposits or withdrawals in this account, so the original balance just accumulates. ..
Which policy will discourage economic growth?
Suppose autonomous consumption is $500, government spending $1,000, panned investment is $1,250, and net exports are -$250 and the MPC is 0.8. What is the equilibrium value GDP?
What is the equilibrium price. What is the equilibrium quantity. If the price was $7, what would be the quantity demanded
What information does the degree of operating leverage provide to management of a firm? How do we define cost elasticity? Is there any relationship between cost elasticity and economies of scale? Show and explain why.
1. Identify 3 businesses, corporations etc. which you feel most closely fit the definition of a monopoly. Be sure to include the 2 criteria that must be present to have a monopoly.
In country V, the government is the monopolist that produces all iron. What does the monopolist control to maximize its profit? Write down the profit as a function of quantity. Find the Marginal Cost and Marginal Revenue functions. Calculate the cons..
A company is considering investing in a project that requires an initial investment of $75,000. The operating and maintenance costs are expected to be $5,000 per year for the first 5 years and then increase by $500 every year for the next five years...
Load an exam: Loading an exam should prompt the user for an exam file. If no file exists, it should allow the user to specify a different file. Upon a successful load of an exam, the user should be presented with the menu again.
Suppose biochemists discover an enzyme that can double the amount of ethanol that may be derived from a given amount of biomass. Based on this technological development, we expect the supply curve for ethanol to shift to the right.
What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram in your notes to determine the expected effects on the equilibrium price level (P) and level of real output (Q). For each of the economi..
What is the difference between relative factor endowments and relative factor intensities? What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky?
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