Reference no: EM13832897
Assume an economy without government and without trade. Suppose the Consumption function is given by C=100+0.8Y, whereas I=50. (Remember to show your work)*
A. What is the equilibrium level of income in this case?
B. What is the level of saving in equilibrium?
C. If, for some reason, output is at the level of 800, what will the level of involuntary inventory accumulation be?
If I rises to 100, what will be the effect on the equilibrium outcome?
D. What is the value of the multiplier, a, here?
2nd Problem
Suppose the consumption behavior in problem 1 changes so that C=100+0.9Y, while I remains at 50.
A. Is the equilibrium level of income higher or lower than it was in problem 1(a)? Calculate the new equilibrium level, Y’, to verify this.
B. Now suppose Investment increases to I=100, just as in problem 1(d). What is the new equilibrium income?
C. Does the change in investment spending have more or less of an effect on Y than it did in problem 1? Why?
Regulate business with respect to privacy on-line
: Many believe that the government should regulate business with respect to privacy on-line, but corporations believe that self-regulation is more effective. Which approach benefits consumers? Businesses?
|
What were texts victor mentions about as they relate
: What were the texts Victor mentions about as they relate to Victor's path
|
Demonstrates the impact of various strategic decisions
: The following is a highly educational interactive exercise which visually demonstrates the impact of various strategic decisions that you can make, under different kinds of industry characteristics. Each individual is to play the simulation and wr..
|
How can these costs affect shareholder returns
: List and explain at least four issues that an investor would consider when deciding whether a corporation is socially responsible and what are the potential costs of being socially responsible to a firm? How can these costs affect shareholder retur..
|
Assume an economy without government and without trade
: Assume an economy without government and without trade. Suppose the Consumption function is given by C=100+0.8Y, whereas I=50. What is the equilibrium level of income in this case? What is the level of saving in equilibrium?
|
Manufacturing plant network setup
: Transition from individual machine set up to network demands lots of correct configuration. Proper network topology, communication over Virtual Private Network, selection of correct hardware configuration and required software are the blocks of a ..
|
What could have made it do better
: Pick a brand extension. Use the scoring model in Brand Focus 12.0. How well did your brand extension do? What could have made it do better
|
Obtain the profit maximizing rate of output
: Can you please explain how I obtain the profit maximizing rate of output? I also do not understand how if a price of the ties were to fall from $19 to $15, how many ties would be produced. Lastly, how do you understand at what price a firm should shu..
|
Why are deposit-type intermediaries able to create money
: Why are deposit-type intermediaries able to create money? What factors increase the amount of deposits the banking system can create with any given injection of new reserves?
|