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Consider the following economy: C=3,I=1.5,G =2.65,T=2,f=0.5,d = 0.1,mpc =0.8 A) Write the mathematical expression of the consumption function B) Write the mathematical expression of the investment function C) Find the IS curve and graph it. D. If r=10, what is the level of Y in equilibrium? E) Assume now that] = 1. Find the new IS curve. F) Which way did the curve shift and why?
1) Consider the following economy: E= 3, = 1.5:6 = 2.65, = 2,1 = 0.5, mpc = 0.8 A) Find the IS curve for d = 0.1 B) Find the IS curve for d = 0.2 C) Find the IS curve for d = 0.4 D) Graph all three curves in the same graph. E) What is the effect of a higher d on the IS curve? Explain.
2) Consider the following economy: The IS curve: Y = 16 - 2r The MP curve: r = 3+ 0.5pi Derive the AD curve.
Why is personalization becoming an important element in EC? What techniques can be to learn about consumer behavior? How can it be used to facilitate customer service? Give an example
Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising. Calculate consumer surplus at the profit-maximizing price if the marginal cost is $264.
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If the official exchange rate of the British pound sterling were changed from $2.80 to $2.40 under an adjustable pegged exchange rate system, the pound sterling would be
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