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1. Solve the following problem:
Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed (GDP=C+I+G), calculate consumption, government purchases, national savings, and investment.
Show your work so that we can explain what went wrong if you miss any aspect of this.
2. Mankiw explains the role the federal government budgetary outcome (surplus or deficit) in determining the long run rate of Investment spending and thus economic growth. Let's take a look at the actual data for the period 1996 to the present to see what has actually happened.
assume that the banking system has no excess reserves. the combined balance sheet of all chartered banks is in million
1.among the problems that hinder growth in developing economies are poor infrastructure lack of financial institutions
Most countries, including the united states, import substantial amounts of goods and services from other countries. a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself.
If the elasticity of crime with respect to the number of police is estimated to be -0.5 and the number of police fell by 5% and, over that same time period, homicide rates increased by 20% then
What are the limits to the U.S. long-term economic growth? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
The jurors of a summary jury trial are usually not aware that their decision does not have a binding effect. The U.S. constitution has one indirect and three direct sources of law. The legislative branch is charged with interpreting the laws in the c..
Imagine a local government is considering opening a public swimming pool in a residential neighborhood
Find the total product, average product and marginal product for integer values of L from 1 to 9. Plot the total product on a graph and the average and marginal product on another as shown in class.
A bridge over the Coosa River currently has no tolls and an average passage of 880 cars per day. State government wants to place a toll on the bridge with the objective of raising the most revenue
An increase in the demand for video films also increases the salaries of actors and actresses. Is the long-run supply curve for films likely to be horizontal or upward sloping? Explain.
Failure to understand elasticities can lead to expensive mistakes by business managers in making important business decisions. Discuss this statement by referring to any one of the concepts of elasticity with suitable examples (price elasticity of de..
suppose the expectations theory of the term structure is correct. suppose that the current interest rate on a one-year
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