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In a closed economy the following holds:Household consumption C is given by the consumption function:C = 100 + 0.75YdPlanned investments are I = 250 (independent of Y ).Household disposable income: Yd = Y - T, where Y is production.Taxes depend on income according to: T = -200 + 0.5Y .Public consumption: G = 1000.(a) Use the simple Keynesian model of the goods market to calculate equilibrium production Y , i.e. the level of production compatible with planned expenditure in the form of consumption and investments.(b) What is the public budget deficit?(c) Suppose that the government increases public consumption to G = 1100. What is production in the new equilibrium?(d) What is the public deficit after the increase of public consumption?(e) What is the multiplier for an (unfinanced) increase in public consumption
The Economic Survey estimated the Forex reserves of India at over 297 billion US dollars. The surge in Forex is attributed to growth in which of the following sector Gross Fiscal Deficit stands at 4.8% of GDP. What was the percentage of Gross Fisc..
What is the sample standard deviation of weights and calculate the change in weight
Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously. a.Find quantity..
Determine the two equal deposits, the first deposit required now and the second deposit at the end of year 6, so that you can withdraw $2,000 at the end of each year for the next 12 years. Assume that money earns 4% interest, compounded monthly.
Describe the fundamental difference between short-run analysis and long-run analysis of the cost structure of a firm and give at least two examples of industries that practice price discrimination, and describe their pricing practices.
The industry demand function for bulk plastics is represented by the following equation: P=800-20Q Where Q represents millions of pounds of plastic. The total cost function for the industry, exclusive of a required return on invested capital, is TC=3..
An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1,500 will have been accumulated. With interest at 3.97% per year, compounded monthly, how much should be deposited now?
A. Ireland is a very small open economy. Trace the likely economic consequences if the government used an expansionary fiscal policy to stimulate the economy. B. GNP at Current Market Prices for 2007 was 60% higher than the figure for 2000. State a..
The MacBurger Company a chain of fast food restaurants, expects to earn $200 million after taxes for the current year. The company has a policy of paying out half of its net after-tax income to the holders of the company's 100 million shares of c..
A security analyst specializing in stocks of motion picture industry the relation in number of movie theater tickets sold in December and the annual level of earnings in motion picture industry.
How much would you need to invest at 6% interest compounded quarterly on January 1, 2014 in order to accumulate $10,000 by December 31, 2016 2-Given cash flows for an investment of $5,800 at time "0", determine the rate of return to the accuracy of ..
Advanced technology digalized theEDG read out and the demand for the old style machine dropped. The drop in demand resulted in a demand resulted in a demand curve of P=3900-.15Q. What was XYZ's optimal output and priving policy given this change i..
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