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Suppose that a certain country has an MPC of 0.9 and a real GDP of $500 billion. If its investment spending decreases by $8 billion, what will be its new level of real GDP?
Instructions: Round your answer to the nearest whole number.
Real GDP = $ ____ billion.
Suppose the real side of an economy is characterized by: Y = 80K1/2 L1/2 K=100 and L= 100 G = 3000 T = 3000
illustrate what feature of the value function explains the phenomenon, and how.
If Jerry Schuster changed the name of the business but still used the tools and equipment he inherited from his father, how would that impact your analysis of this case?
q1. peter and sally enter a bus and two adjacent cramped seats are free. they must decide whether to sit or stand.
Suppose the demand for oranges in the U.S. is: P = 5.35 - .012 Q. Where Q is the quantity demanded for oranges in the U.S. (measured in millions of boxes per year) and P is the price per box.
Consider a simple one-period, closed economy model where the representative consumer has utility function u(C, l) and h available hours to divide between work and leisure. The representative firm has technology given by Y = zF(K, N^d ). Define a Comp..
Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7 ,where Q is total output or units produces; K, capital; L, labor and M, materials.; that is, this is a input factor production function. Take the log of the above fun..
Suppose Shiva has preferences different from those discussed in class, as indicated by the following: If he consumes more milk (M) than bread (B), then he will always be willing to give up 2 units of milk for 1 additional unit of bread to remain indi..
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 1000 Japanese yen, but finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
If a firm can sell its product for more than its fixed costs, but not for more than its totals costs:
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.
Believe that they must be able to explain people's tastes in order to elucidate what happens when tastes change.
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