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Q. Assume that Country A has a population of 500000 moreover only produces one good car. Country A produced 100,000 cars every year. The people in Country A procure of 90000 cars although there are not enough cars to fulfill all demand. They make a decision to import 50000 extra. The government buys 25,000 cars for its police force also 10000 cars are purchased by companies to transport employees to other position to work. It also exports 65000 cars to nearby countries for sale.
In the short run go up if government purchases, what happens to GDP? Show this graphically.
If consumption and government purchases go up, what happens to GDP in the long run? Show this graphically.
Explain how does this relate to Keynesian economics?
If the returns of the risky portfolio are normally distributed, what is the probability of returns being less than 29%.
Calculate the four combinations of outputs of corn and rice for these 4 plans.
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs?
Support your answer amid an illustration which shown market equilibrium for chocolate bars which comprise x and y interrupts of the curves and label them accordingly.
Wwhat is the equivalent annual worth of costs for the website over a total of 6 years at an interest rate of 12% per year.
If there was a capital gain tax of 30 percent, what is the after-tax real interest rate, with the inflation rate of 8 percent.
Suppose, on the other hand, that the second country retaliates with an export subsidy of its own.
At what level of output will this firm maximize profit. Elucidate what is the level of profit for every unit of output produced at equilibrium.
What is the MRS Is this consumer at an optimum. If not at an optimum should the consumer buy more of the X good or more of the Y good.
Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.
Illustrate the expected total monetary loss under 4% of annual interest rate if this park is permanently closed this year.
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