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In the keynesian cross, the consumption function is c=200+0.75(Y-T). planned investment is 100, govt purchase and tax are both 100.
a)graph planned expenditure as a function of income.
b)what's the equilibrium level of income.
The following is a list of figures for a given year in billions of dollars. Calculate the GDP and NI.
Shannon bakes cookies and Justin grows vegetables. In which of the following cases is it impossible for both Shannon and Justin to benefit from trade?
How much more output each year will have to be produced in the world
Discuss one or two examples of media that have influenced your desires or affected your consumer choices and consumer behavior influenced by advertising.
Suppose the number of points on an economics midterm (P) can be characterized by the following procution function: P=5H-4B; where H is the number of hours spent studying for the exam and B is the number of beers consumed the week before the exam.
Robinson Plastics makes clear plastic products with injection molding techniques. Their latest invention is a plastic cup with a sharp blade mounted inside to cut prescription pills into small pieces. The cup is placed over the pill and as the cup..
Eluidate the difference among comparative advantage and absolute advantage.
A competitive firm can sell all of its output for the market price of $5. its short run cost function is TC= 1000 + Q + 0.005Q2. this cost function has marginal cost given by MC= 1 + 0.01Q.
What is the present value of growth opportunities? or P/E ratios the price is at a point in time while the earnings occur over a period of time. It is, therefore, necessary to specify whether the earnings are for the trailing twelve month period (..
Suppose one economist believes the target rate of unemployment is 4.3 percent while another believes it is 5.5 percent. Using Okun's rule of thumb, by how much would you expect their estimates of potential GDP to differ in a $12 trillion economy
How does the share of income spent on each good change with pb? If consumers' preferences defined by a Cobb-Douglas utility function, what does your result suggest about their expenditure patterns?
Suppose the airline is offered $4,000 per week to haul freight along the route for a local firm. This will mean replacing one of the weekly passenger flights with a freight flight (at the same operating cost).
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