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Assume consumption is represented by the following: C = 200 + .9Y. Also assume that planned investment (I) equals 300.
(a) Now, suppose the level of income is equal to 4000. What is the level of planned aggregate expenditures at this level of income? What is the value of any unplanned changes in inventories?
(b) Given the information, calculate the equilibrium level of income.
(c) Given the information, calculate the level of consumption and saving that occurs at the equilibrium level of income.
(d) Suppose planned investment falls by 100. Calculate the new level of equilibrium income.
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month.
Suppose the government imposes on producers an excise tax of $20 per T-shirt. What will be the new market equilibrium price and quantity
In recent years, the child tax credit has been increased in the united state. According to the basic principle of economics, how will the birth rate be affected by polices that reduce the taxes imposed on those with children?
Go to http://hdr.undp.org/hdr2006/statistics/data/ and choose "Data by Country" (you may need to change 2006 to 2007, etc. in the URL).
Describe the role of shortages and surpluses in competitive markets.
The additional benefits that arise by using an additional unit of the managerial control variable is defined as the:
New Tech has a new product that has incurred R&D expenses of $375,000. An additional $500,000 is needed if the product is to proceed. Initial sales will be.
Imagine that a technological innovation reduces the costs of producing high-quality steel. What happens to the supply curve for steel?
describe at least 3 criteria that would determine whether the manager is making good decisions. what should be done to
Study the structure of the industry using Porter's Five Forces Model. The focus is on explaining how the challenging issues that have been identified influence.
Explain why a perfectly competitive firm generally does not maximize its profit by producing the output at which average cost is minimized.
Diagram an income utility curve with two points representing a sick state (S) and a healthy state (H). Now diagram two types of insurance.
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