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Fredonia has the following consumption function:
Firms in Fredonia always invest $700 and net exports are zero, initially. The government budget is balanced with spending and taxes both equal to $500.
a. Find the equilibrium level of GDP.
b. How much is saved? Is saving equal to investment?
c. Now suppose that an export-promotion drive succeeds in raising net exports to $100. Answer (a) and (b) under these new circumstances.
you are interested in estimating the following modely aoa2x2 a2x2uhowever you have detected an exact linear
Benefits of collaboration include developing critical thinking skills, discussion and consideration of ideas, and social skills development" (Kieser & Golden, 2009, p. 42). Paraphrase and cite.
What is the main reason for the estimation of the error in regression models
Assume you have the following model of the expenditure sector: Sp = C + I + G + NX C = 400 + (0.8)YD Io = 200 G = 300 + (0.1)(Y* - Y) YD = Y - TA + TR NXo = - 40 TA = (0.25)Y TRo = 50 What is the size of the output gap if potential ou..
Insert your typed answers immediately following the corresponding question.Handwritten graphical responses are permitted; however, they too should be inserted immediately following the corresponding question (leave space so you can hand-draw your ..
Grain prices go the way of the oil price Rising grain prices have started to impact the price of breakfast for millions of Americans-cereal prices are rising.
Given the following equations, P=1000-10Q, MR=1000-20Q, and MC=400 Calculate the competitive equilibrium consumer surplus. Calculate the Monopoly-case (a) deadweight loss, (b) remaining consumer surplus,
Suppose M=$100, and prices are P1= $20 andP2= $20; calculate the utility maximizing quantities ofX1 and X2. If price of good 1 drops to $10,what would be the demand for X1. Using this information,draw a demand curve of X1.
Suppose that you are a monopolist who produces gizmos, Z, with the total cost function C (Z) = F + 50Z; where F represents the firms fixed costs. Your marginal cost is MC = 50. Suppose also that there is only one customer in the market
Assume in each cell that the noise PSD N0/2 at each base station receiver has N0 = 10-9 W/Hz and that all mobiles have the same transmit power P.
(a) Calculate the equilibrium price and quantity of coffee-makers. (b) Draw consumer surplus and calculate its exact value. (c) Draw producer surplus and calculate its exact value. Now assume that Home opens up to trade.
A country with a civilian population of 90,000 (all over age 16) has 70,000 employed and 10,000 unemployed persons. Of the unemployed, 5,000 are frictionally unemployed and another 3,000 are structurally unemployed.
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