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Assume that the consumption function is given by C=200+0.5(Y-T), I=800, G=300, and T=200.
Use the Keynesian-cross model to illustrate graphically the impact of an increase in taxes on the equilibrium level of income.
Illustrate what will be the effect of the different tools of fiscal approach to stabilize the economy
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
An agency is having problems with personal phone calls made during working hours.
Derive the short run total cost, short run average cost also short run marginal cost as functions of output q.
Compute the new equilibrium wage and the new number of jobs. Will the number of jobs increase or decrease.
If the American auto companies make a breakthroufh in automobile technology and are able to produce a car that gets 70 miles to the gallon, what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain.
Every may either 'cooperate' with its rival or 'cheat' in every period of play. If both cooperate, they earn $100 every in that period.
Willie will receive all his operating expenses, and in addition will receive $2,000 each year for the decline in value of the automobile.
Elucidate how an individual buying a car would prefer a free GPS system to a free leather seat upgrade.
Find average cost (AC), average variable cost (AVC), marginal cost (MC), marginal revenue (MR). What is the quantity that maximizes profit? What is the revenue and profit at that point?
Elucidate how the equilibrium quantity for the representative firm on the same graph.
What is the accounting profit that Fred would get in his venture? What is the economic profit that Fred would get in his venture? Would you recommend Fred go ahead with his venture? Why?
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