Reference no: EM1373779
1.
AGGREGATE OUTPUT/INCOME CONSUMPTION PLANNED INVESTMENT
2000 2100 300
2500 2500 300
3000 2900 300
3500 3300 300
4000 3700 300
4500 4100 300
5000 4500 300
5500 4900 300
a. At each level of output compute savings. At each level of output, compute unplanned investment (inventory change). What is likely to happen to aggregate output if the economy were producing at each of the levels indicated? Determine the equilibrium level of output?
b. Over each range of income ( 2,000 to 2500, 2500 to 3000, and so on), calculate the marginal propensity to save. What is the multiplier?
c. By assuming there is no change in the level of the MPC and the MPS, and planned investment jumps by 200 and is sustained at the higher level, recompute the table. What is the new equilibrium level of Y? Is this consistent with what you compute using the multiplier?
2. From 1969 to late 1970, real GNP grew by more than $40 billion and employment ( the number of jobs) grew by 1.6 million, but the unemployment rate nearly doubled, from 3.4 percent to 5.9 percent. How can that be?
|
Impact of the proposed tax on the optimal retirement age
: Most Social Security recipients do not currently pay federal or state income takes on their benefits. Assume the government proposes to tax these profits at same rate as other types of income.
|
|
Why government support public education
: Explain why does the government support public education when the private sector also provides this service and describe why labor productivity is important but not the only key to improvement in living standards.
|
|
Absolute advantage and comparative advantage
: Determine absolute advantage and comparative advantage and explain why will resources specialize according to their comparative advantages?
|
|
Determining current equilibrium interest rate
: Consider a nation with an economic structure consistent with assumption of classical model. Assume that businesses in this country suddenly anticipate higher future profitability from investments they undertake today.
|
|
Find the equilibrium level of output
: At each level of output compute savings. At each level of output, compute unplanned investment (inventory change). What is likely to happen to aggregate output if the economy were manufacturing at each of the levels indicated?
|
|
Research monetary and fiscal policies
: Research monetary and fiscal rules that have affected a particular chosen industry and determine two sources to help you answer following questions about the industry you select.
|
|
Outsourcing decisions made by us companies
: Determine the pros and cons of the following consequences of outsourcing decisions made by United States firms in response to increasing globalization and tougher competition in marketplace.
|
|
Rise in the minimum wage
: Use an appropriate diagram, demonstrate and describe briefly how a increase in minimum wage could result in higher employment in a monopolistic labor market.
|
|
Hinder growth in developing economies
: Between problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound of money supply, a low saving rate, poor capital base, and a lack of foreign exchange.
|