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Keynesian Cross ROUND ALL CALCULATIONS TO TWO (2) DECIMAL PLACES
a. Please draw the Keynesian Cross assuming the following information. Be sure to specify at what point consumption and disposable income are equal. Marginal Propensity to Consume = .67 Autonomous Consumption = $850
b. Assume that your disposable income is $1250. How much are you consuming? Are you saving or dissaving?
c. Assume that autonomous consumption decreases to $256. Please illustrate this change on graph from part a. Again, you must specify at what point consumption and disposable income are equal.
d. Based on the change in part c, illustrate what will happen to aggregate demand.
Explain how much total pollution reduction will occur under proposal A and what be will the total compensation received by regions O and R.
A protective Tariff is often used by governments to attempt to control trade between nations to protect and encourage their undeveloped local industries, businesses. Using the Mundell-Fleming model, which of the following prediction is accurate under..
Explain how a combination of fiscal and monetary policies could change the composition of GDP towards consumption and away from investment without changing the level of aggregate demand.
Elucidate how asymmetric information about a hidden action or a hidden action or a hidden characteristic can lead to moral hazard or adverse selection.
In Illustrate what way are entrepreneurs also businesses at the helm of the economy but commanded by consumers?
Sally earned $25,000 per year before she became a mother. After she became a mother, she told her employer that she would not be willing to work for anything less than $50,000. Her decision is based on
q1. the government is considering a policy to reduce air pollution by restricting the use of dirty fuels by factories.
q.assume that we have a expenditure function of the form c 220 0.9timesyp where yp is permanent disposable income.
A small town in rural lowa has one large factory that employs the workers in the town.Major League Baseball is an example of what labor market model?
John has the utility function U = Min{x,y}. The price of x is 1, the price of y is 1, and his income is 50. a) Find John’s optimal bundle. b) Suppose now there is a discount for the first 20 units of x John buys such that px=0.5 for those first 20 un..
Carefully define a standard normal distribution. Why does a researcher want to go from a normal distribution to a standard normal distribution? Explain. (250 words)
Describe the nature oft eh incentive conflict between VCs and the managers, identifying the principal and the agent.
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