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With reference to the simple closed economy income-expenditure model,suppose the aggregate consumption function is C = 100 +0.8(Y – T); taxes areT = 10 + 0.25Y; investment, I, is 300 and government expenditures, G, are 200.
(a) Calculate equilibrium income, consumption and the government budgetsurplus.
(b) Calculate the level of income that equates taxes to governmentexpenditures.
(c) Calculate the government expenditure multiplier.
If you were offered an outrageous compensation package to join a company that is laying off employees, declaring bankruptcy, and/or performing poorly overall, would you accept the position?
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
If an alternative has monthly payments of $10,000 a month for three years with a purchase price of $75,000 at the end of year three, what would the cash flow diagram look like. what would the cash flow diagram look like
A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.
Johnson Filtration, Inc. provides maintenance service for water-filtration systems. Data that follow show the repair time in hours, the months since last service, the repair type and the repair person for a sample of 10 maintenance service calls.
Texas instrument once announced a price for random-access memories that wouldn't be available until two tears after the announcement few days later, Bowmar announced that it would produce this product and sell it at a lower price than Texas instru..
After two years the City of Plentiful is faced with a fiscal crisis and decides that it wants its garbage back.
Find out the equilibrium market price. Find out the profits of the leader and the follower
Is raising agricultural productivity sufficient to improve rural life in LDCs. Illustrate what policies can be designed to transform agricultural development and raise levels of living in rural areas in LDCs.
Keynesian Economics: Suppose the following about the economy of the United States: Government spending = 660, planned investment (Ip) = 215, autonomous consumption is 200, net exports is 100 and taxes are 100. In addition, for each additional $1 o..
Calculate the steady-state growth rates of capital, output, saving and investment, and consumption - calculate the steady-state growth rates of capital per worker, output per worker, saving and investment per worker, and consumption per worker
Explain why does the aggregate supply curve become very steep after potential output is reached. What does it mean for inflation when the demand curve shifts and crosses into this steep portion of the supply curve.
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