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Suppose the economy has the following parameters:
Autonomous consumption is set at 800 and the marginal propensity to consume isa= 0.8
Autonomous investment is 2000.
In the short run, an increase in interest rate (r) by 1 percentage point reduces consumption and investment by 500 units each; i.e..
There is no government and no exchange with the rest of the world.
a) Write down the consumption function, the investment function and the planned aggregate expenditure function.
b) Write down the equation representing the economy at its equilibrium. You can now calculate the equilibrium values for output, consumption, and investment assuming that the central bank fixes the interest rate at 5%. What is the value of the Keynesian multiplier?
Describe how the choices made between governments’ spending of taxpayer money or taxpayers spending that money themselves, affect the allocation of society’s resources. Give reasons.
Compute the mean and standard deviation of the damage in any year and determine the expected value of X, E(X), and expected value of Y, E(Y).
Arkansas has one of the highest numbers of STLs in the United States. In an effort to recoup the costs of dealing with the meth epidemic, twenty countries in Arkansas filed a suit in a federal district court against Pfizer, Inc., and other compani..
Start your discussion with the definition of "a central bank transparency" - what is it and then proceed to the discussion of advantages and disadvantages of a central bank transparency.
Suppose there is a temporary increase in Yw, world income, which increase the demand for domestic goods on the world market. On the graph of Output, Money and Foreign exchange markets show the short-run effect of Yw increase.
Allen and Aimee put $70,000 of their own money into the firm
what are your thoughts regarding the argument that the u.s. approaches situations with a reactive stance as opposed to
The aggregate supply curve shows the relationship between the aggregate price level and: Profit per unit equals:
Countries can expect to gain from international trade as long as they keep production diversified
Probability values are assigned on a scale from 0 to 1, with 0 indicating that an event will not occur and 1 indicating that an event will definitely occur. In this activity, you will apply basic concepts of probability to common workplace issues.
What is the equilibrium wage?
you are reviewing your monthly budget and determine you have 60.00 to spend on either books or movies each month.
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