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Question1. Assume that the initially equilibrium was 200 units and that this was also full employment level of income. Suppose that the consumption is C = 25 + 0.8YD, and that, from this level, we now have a decline in investment of 8 units. What will be the new level of income? What increase in government spending would be needed to restore income to its initial equilibrium level of 200 units?
Question2. In the above question, assume that, begining from the initial equilibrium position investment equals 100, government expenditures equals 75, and net taxes are fixed at 100, there is an autonomous decline in consumption and an increase in savings such that the new consumption function is C = 5 + 0.8YD.a) Find the change in income resulting from this autonomous increase in savings. Explain why this change occured.b) Compute the level of savings before and after the shift in consumption and, therefore, the savings function. How do you explain this result?
Explain how much is spent on bus rides. What is consumer surplus in dollars at this equilibrium. How much is the total benefit in dollars from bus rides.
Make sure to properly cite and reference the article in your review, along with any additional sources that you use.
Illustrate what is the demand and supply for labor in the unionized sector. Any surplus migrates to the uncovered sector. What is the new equilibrium wage and labor utilization in that sector.
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Assume a 2 sector economy (where the two sectors are consumption and investment) where C= $100+ 0.9 Y and I=$50
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Suppose that the car manufacturer allows the car dealer to return all unsold cars at the end of a recessionary year. What is the car dealer's profit in a growth year and in a recession? What is their expected profit?
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Computer the amount of manufacturing overhead incurred for the month. Suppose all costs are actual. Using actual costing, compute the cost of one unit.
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