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1. Why is saving called a leakage? Why is planned investment called an injection? Why must saving equal planned investment at equilibrium GDP in the private closed economy? Are planned changes in inventories rising, falling or constant at equilibrium GDP? Explain.
Providing the current situation with General Motors, our team is recommending that they (GM) reduce their current operations in order to maximize profits.
ensure that the benefits to those who gain from the decision are greater than the losses of those who are harmed by thedecision. which criterion would you select to use in determining the route of the highway. explain
Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will on average cost each driver $10,000. Suppose there are 2 types of individuals:those w/$60,000 in the bank and those with $5000 in the bank.
Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
Compute the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase.
In replacement analysis for a vacuum seal on a spacecraft the following data are know about the challenger:
Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated rates.
Jason enjoys DVDs and spy novels and spends $60 a month on them. The price of a DVD is $20 and the price of a spy novel is $10. a. What is Jason's real income in terms of spy novel b. What is the relative price of a DVD
Think about Trade. Country A takes 20 minutes to make a car, and 15 minutes to make a computer. Country B takes 30 minutes to make a car, and 20 minutes to make a computer. Total work time is 1 hour. If trade begins who exports and who imports
In a situation in which a gift certificate leads a consumer to purchase a greater quantity of an inferior good than he or she would consume if given a cash gift of equal value. Is this always the case? Explain.
Use the following data for a pure monopoly to calculate the firm's-its profit-maximizing output level and produce price;
What is the crowding out effect A reduction in private spending as a result of higher interest rates generated by budget deficits that are financed by borrowing in the private loanable funds market.
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