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(a) Answer the following questions using the aggregate expenditures model of the economy described below. C = 80 + .6Yd T = 40 + .2Y Ia = 28 Ga = 64 Xa = 76 M = .18Y i. What are the marginal propensity to consume, the marginal tax rate, and the marginal propensity to import? ii. What is the saving function? What is the marginal propensity to save? iii. What is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw? iv. What is the equilibrium level of real GDP? v. What is the size of the multiplier? vi. Suppose the full employment level of real GDP is $340. Does a recessionary gap or an inflationary gap exist? How can the government eliminate the gap by altering government expenditures?
Explain how the economy affects the success of the auto industry. Economic influences that can affect the industry in a negative way.
Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software.
Elucidate what you can do, if the best technology was used to produce the components of the system to achieve the .99 reliability.
Suppose a firm uses 2 inputs to produce one output. Can you derive an optimality condition for conditional factor demand for the first input if the second factor is fixed in the short run How does it look like
As all points on a contract curve are efficient, they are all equally desirable from a social point of view.
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
List and explain the sources of expenditures in economy by focusing on the 4 major sectors of economy.
A software firm earned ten million this year. Suppose the growth rate of the software firm and the interest rate are both constant and the software company will be business for years to come.
Illustrate what is the value of a two-month call option to buy Sony at $26. Illustrate what is the value of a two-month put option with an exercise price of $26.
Read the following text and answer the questions below: Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
Writing a production function in terms of capital andeffective labor implies that the level of technology increases by 10%, thenumber of workers requiredto achieve the same level of output decreases by 10%.
Wealth in the United States has grown steadily. If wealth were the only factor affecting currency demand, what do you expect would have happened to the currency-deposit ratio over time?
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