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Suppose the government in this economy decides to increase government purchases by $250 billion. The increase in government purchases will lead to an income, generating an increase in consumption that increases income yet again, and so on. Figure out the First Change in Consumption, The Second Change in Consumption, and the Total Change in Demand.
Suppose that an auto company owned entirely by german citizens opens a new factory in south carolina. What sort of foreign investment would this represent Would the effect pm the U.S. GDP be larger or smaller
Normal people are willing to pay $250 and their desire to purchase doesn't vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iphone. Assume that there are equal numbers of each customer type and the MC of..
Explain why this firm would not try to sell more output by undercutting the market price. A calculation is not necessary but you may choose to use it as your explanation. What will happen in this industry in the long run
Sam purchased a machine 4 yrs ago at at cost of $8,000. It has a book value of $2300. It can be sold now for $4,300, or it could be sold for 3 more yrs,at the end of which time it would have no salvage value. assuming it is kept for 3 more yrs.
The St. Louis Federal Reserve bank at www.research.stlouisfed.org/fred2 provides data on both real GDP (chained 2000 dollars) and real potential GDP for the United States. To get the data, first click on Gross Domestic Product (GDP) and Components..
Suppose Country A has a GDP of $4 trillion. Residents of this country earn $500 million from assets they own in foreign countries. Residents of foreign countries earn $300 million from assets they own in Country A. Compute: a.Country A's net forei..
Tony owns a fancy Italian restaurant, Tony's Trattoria. He uses only the finest ingredients and hires the best chefs in the country. Suppose Tony's total cost function is given by the following relationship: TC =100 +10Q +Q^2 , where Q is the numb..
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..
An estimate of the demand function for household furniture produced the following result F= 0.0036Y1.08R0.16P-0.48 p=0.996 where F= furniture expenditures per household. Y= disposable personal income per household.
Keynesian Economics: Suppose the following about the economy of the United States: Government spending = 660, planned investment (Ip) = 215, autonomous consumption is 200, net exports is 100 and taxes are 100. In addition, for each additional $1..
The unit cost of a console to Nintendo is $30, and of a game to Sega is $10. Suppose, each month, Nintendo considers prices $250 and $350 for consoles, and Sega considers $40 and $50 for games.
What generalization can be drawn from the completed table There is insufficient data to make a generalization OR Bond price and interest rate are inversely related OR Bond price and interest rate are not related OR Bond price and interest rate are..
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