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Assume the following:C=$200+.75DI
I=$100
G=300
Xn=$50
Calculate the equilibrium level of output. What is the multiplier? Show the equilibrium level of output graphically. (Assume the government expenditures are the result of deficit spending).
As per to Global Insight, a Massachusetts economics consultancy, elucidate what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months.
A firm is currently producing their profit maximizing quantity of 600 units of output using 150 hours of labor and 50 hours of capital. The marginal product of labor is 10 units of output per hour and the marginal product of capital is 30 units of ou..
Solve the equilibrium in this sequential game. Be sure to characterize the quantity choices, the market price, and the resulting profits. c) Compare the above two outcomes and explain the differences.
Suppose that all of the firms in the coal mining industry were willing and able to produce and sell 5 million tons per week at a price of $3/ton last week. This week the firms are not willing and able to produce and sell that amount at a price below ..
Suppose there are two firms in a market that each simultaneously chooses a quantity. Firm 1's quantity is q1, and firm 2's quantity is q2. Therefore the market quantity is Q = q1 + q2. The market demand curve is given by P = 160 - 3Q. Also, each firm..
Identify the following interest rate statements as either nominal or effective: 13% per year compounded monthly; 2.5% per quarter compounded quarterly; effective 2% per month compounded weekly; nominal 1.5% per month compounded daily; and 12% per yea..
Why might it be hypothesized that a typical developed country is likely to have a greater relative amount of intra-industry trade than is a typical developing country? Explain.
Find the equivalent equal payment series (A) using an A/G factor such that the two cash flows are equivalent at 10% compounded annually. First cash flow: Start at -$50 at year zero and goes up every year in increments of $50 so at year five its at $2..
Assume you are the new manager of a local company. In addition to demonstrating your managerial skills during the interview for the position, the Vice President of Human Resources (HR) was impressed with your positive and charismatic attitude. Will y..
Burger King, the national franchise, is banned from opening a restaurant within 20 miles of Mattoon, Illinois. So, there is not a Burger King there; no problem, right? However, the national chain was able to keep the name Burger King, but the Hoots w..
In 2013, approximately 58 percent of the adult population (245million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the Prerecession level of 62 percent, How many more people would be working?
Pete borrows $10,000 to purchase a used car, He must repay the loan in 48 equal end –of-period monthly payments. Interest is calculated at 1.25% per month.
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