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Assume that the following equations characterize a small open economy: (1) Y = 7,000 (2) Y=C+I+G+NX (3) C = 1000+.70(Y - T) (4) I=900-90r (5) NX=700-700∈ (6) G=1,000 (7) T = 1,000 (8) r=r*=5 where NX is net exports and ∈ is the real exchange rate. (a) What are public saving, private saving, and national saving? Solve these equations for the equilibrium values of C, I, NX, and ∈ . Explain what you find using a graph. (b) Suppose the government of this country decreases taxes by 500. What are public saving, private saving, and national saving? Solve these equations for the equilibrium values of C, I, NX, and ∈ . Explain what you find using a graph.
The small island of Tap, inhabited by the Tapese people, produces a single variety of corn. At the present time, each farmer produces his or her own corn, harvests it and carries it to the market for sale. On any market day in Tap, you will find m..
Current economic theory and their application or lack of application to contemporary economic problems
Name at least 10 goods and services for which the demand would be elastic or inelastic. What determines the price elasticity or inelasticity of demand of a good or a service Explain by referring to the list you have compiled. Submit your work in t..
In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there a probably ..
a examine your y data excluding the hold out period to determine if it needs to be differenced to make it stationary.
Consider another policy where the government could impose a price ceiling p on the monopolist. If the government were interested in maximizing social surplus, what would be the optimal value of p when considered from the point of view of the gover..
the following table presents data for wages in the market for internet security professionals.in the labor market the
Examining the current market situations of "Starbucks" competition can take many forms. value competition includes collusion, price leadership, loss leaders, price discrimination.
Suppose the demand for total snuffbox production is given by Q = 1,100 – 50P. What will be the equilibrium in this marketplace.What will each firm’s total short – run profits be.
mike bill and ed have different preference levels for their support for military spending on overseas operations. mike
what happens to the price of bonds when the fed sells bonds? what happens to the interest rate? what happens to the
following the recession of 2001 there was a month in which employment and the unemployment rate both rose. assuming the
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