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Question: Given the information in the table calculate the following:Assume Y = N$500m + 0,85Y; M= 0,3Y; I = N$900m; G = N$850m; X = N$1,840m and t = 0,21Y.
1 Calculate the total-spending function and equilibrium income. Illustrate this on a graph.
2 Indicate on the graph the effect of an N$300 million increase in investment spending and comment on the magnitude of change in the equilibrium income relative to the change in investment spending. Calculate the new equilibrium income.
3 Assume the marginal tax changes to t = 0,35Y. How will this change influence the total spending curve? Illustrate this on your graph.
Suppose the minimum average variable cost of producing a good falls due to technological improvements. Show in a diagram how this affects the supply curve of a typical competitive firm and the supply curve of all firms in the industry
Assume that the inflation rates in 2010, 2011, and 2012 were 1%, 2%, and 3% respectively. During the same periods, nominal interest rates were 5%, 5%, and 6%, respectively. What are the ex-post real interest rates in 2010, 2011, and 2012?
1. if the income elasticity of demand for lard is -3.00 that means thata.lard is a substitute for butterb.lard is a
My behavioral economics professor continues to refer to the "Crankcase oil problem" as a basis for assuming "something about preferences." What could he be referring to?
They both buy some milk and some doughnuts, but they buy considerably different quantities of the two goods. Can we conclude that their marginal rate of substitution between milk and doughnuts is the same? Draw a graph showing their budget constra..
Let's make part d more concrete: What would the total cost be if BigCo were the only firm in the market, and it had to produce 7 tons of rolled steel?
Consider the following demand schedule. Does it apply to the perfectly competitive firm? Calculate marginal and average revenue.
The problem is relates to Economics and it is explain about a scenario where business inventories have increased dramatically in the last month and its effect on the economy.
Define the types of ethical duties Jeff, Joan, Martha, and Henry have to each other as owners of the company. What about as family members?
Identification of the Issue: Describe the context of the issue that was presented to you and the specific statements that you will research.
Which of the following is not among the functions of contract? When manufacturers and distributors establish credible commitments to one another, they often employ?
The Financial Advisor is a weekly column in the local newspaper. Assume you must answer the following question. "I recently retired at age 65.
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