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a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion? $ billion.
How large a tax cut would be needed to achieve the same increase in aggregate demand?
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Increase spending by?
Increase taxes by?
The table below shows the total cost of cleaning classrooms at various outputs: 5. Classrooms cleaned per evening 0 3 4 7 8 12 13 16 17 Total cost $100 $200 $240 $300 $330 $400 $440 $500 $600 a) Calculate fixed and variable costs of cleaning 0, 3,..
Use Okun's law to calculate the GDP Gap if actual U= 10% andUn= 6%. If actual Gdp is 100, then what is the value for potential output I got the GDP gap and its +.08, how do you come up with the potential output
compare the interest rate earned on $15000 for 25 years at 7% simple interest with the amount of interest earned if interest were compounded annually SIMPLE INTEREST: I=iPN=(0.07)($15,000)(25) I=$26,250 COMPOUND INTEREST I=P[(1+i)^N-1] I=$15,000[(1..
Of the four sources of funding listed above, which sources are likely to increase/decrease Again, be sure to distinguish between a change in dollar terms versus a change in its contribution to overall funding/revenue.
The subway fare in your town has just been increased from a current level of 50 cents to $1.00 per ride. As a result the transit authority notes a decline in ridership of 30 percent. a) compute the price elasticity of demand for the subway rides.
Calculate and print out the balance due, principal payment, and interest payment for each period of a used-car loan. The nominal interest is 12% per year, compounded monthly. Payments are made monthly for 3 years. The original loan is for $11,000.
An incumbent firm, Firm 1, faces a potential entrant, Firm 2, with a lower marginal cost. The market demand curve is p=120-q1-q2. Firm 1 has a constant marginal cost of $20, while Firm 2's is $10.
measuring the price of gasoline in dollars, an economist calculates the price elasticity of demand to be .5. what would the price elasticity of demand be if the economist had choosen to measure the price of gasoline in pennies rather than dollars
When you were born, your grandfather established a trust fund for you in the cayman islands. The account has been earning interest at the rate of 10% per year. If this account will be worth $100,0000 on your 25th birthday, how much did your grandf..
Suppose you make 30 annual investments in a fund that pays 5 percent compounded annually. If your first deposit is $7500 and each successive deposit is 5 percent greater than the preceeding deposit, how much will be in the fund immediately after t..
The market demand curve for cable is P = 1000 - Q, where Q, the firms output, is here the number of hundreds of households with cable. The cost of supplying Y hundred households with cable is TC(Q ) = 500 - 50Q + 2Q*Q.
Consider the production function Q= 20K1/2L1/2 The firm operates in the short run with 16 units of capital.Using the marginal product (MP) function derived in part c, the marginal product is _____ when 160 units are produced.
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