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Using the Keynesian cross model, draw a graph to illustrate and explain what will happen in an economy when planned aggregate expenditures are greater than real GDP (i.e., A.E. > Y). How is equilibrium achieved in this economy?
In the short run a firms total cost of producing the hundreth unit of output equals $10,000. If it produces one more unit its total costs will be $10,150. whats the marginal and average total cost of the 101st unit and whats the average total of 100 ..
You are a budget analyst in a California State legislative budget committee and have been asked to prepare a policy brief on the budget issue for the state.
Suppose that the economy is currently at potential output. Also suppose tht you are an economic policy maker and that a you have been asked to rank if possible, your most preferred to least preferred type of shock: positive demand shock
Etta and Moorea run a stand where they sell lemonade and brownies. Their cost function is\(C(Q_{L}Q_{B})= .5Q_{L}+.25Q_{L}^{2}+Q_{B}^{2}-Q_{L}Q_{B}\)they can sell a cup of lemonade for $1.20 and a brownie for $0.95. What are Moorea and Etta's prof..
A). Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis. B). Will a government policy to redistribute income to achieve less income inequality potentially help or h..
Alternatively, suppose that the temporary increase in government purchases is for infrastructure (roads, sewers, bridges, etc) rather than for military purposes. The government spending on infrastructure makes private investment more productive, i..
Illustrate what do you think about the goal of the IMF's aid to distressed countries. What has been the controversy surrounding the IMF austerity programs.
As in the case of oligopoly markets, rivals may select to compete aggressively, non-aggressively or in non-price dimensions.
General Electric discovered that the marginal product of magnesium a variable factor in manufacturing of light bulbs will lead to the eventual decline in output as the use of the magnesium is increased. This illustrates what economic theory
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
Suppose that an economy initially at full-employment is hit by an adverse supply shock a) What will happen to output and the price level in the short run b) What will happen to output and the price level in the long run
A firm is using 20 units of labour and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labour is 50 and the marginal product of capital is 40.
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