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Y= C + I + G + (X - IM) where:C = 400 + 0.8Y, I = 50, G = 100, X = 50, IM = 100 And also:DI = Y - T + Tr, T = 50, Tr = 150, YF = 5000 Suppose the President and Congress choose to eliminate the output gap by using discretionary fiscal policy and focusing on transfer payments. What would be the new value of transfers (Tr) needed to achieve the goal of fullemployment?
Assume Bank A, which faces a reserve requirement of 10%, receives a $1000 deposit from a consumer.
What monetary policies do you think caused the crisis What were the effects of the policies implemented in reaction to the crisis Do you think the solutions worked in the short term In the long term
Income at a major cellular telephone manufacturer when it decreased the average selling price of its phones.
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
Edgemont Company had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005 Edgemont had assets of $350,000,
Suppose our business plans to take out a 5-year loan for $100,000. The after-tax MARR is 10%, the tax rate is 40%, and the loan interest rate is 15%. Rank the following loan options using present worth analysis: Method 1: Balloon loan (pay only in..
Describe three (3) ways we can use macroeconomic analysis, with one (1) original example for each way. Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market.
a explain why a higher marginal tax rate reduces the size of the government expenditure multiplier.b suppose government
germany consumers have 50 in income their gross domestice product. they spend 35 on consumer goods 25 on germany goods
Given that the CPI was 17.1 in 1929 and 184 in 2003, how much would you have to make in 2003 to have the same real hourly wage?
Suppose that an individual has $100,000 in housing wealth (w). The probability of a fire resulting in a loss (L) of $60,000 is 10 percent. Suppose that this individual's utility function is U(w) = w0.5. Calculate and graph the following values: ex..
Adopt a first-degree price discrimination policy, what prices should you charge to maximize revenues and what are the revenues?
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