Illustrate what is the minimum national loss if canada

Reference no: EM1347780

Q. An economy has the following consumption function: C=200+0.8DI

The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are$100. Investment is $600. Find equilibrium GDP. What is the multiplier for this economy? If G rises by $100, what happens to Y? Illustrate what happens to Y if both G and T rise by $100 at the same time?

Q. Find out the equilibrium level of GDP demanded in an economy in which investment is $250, net exports are zero, government purchases also taxes are both $400, and the consumption function is as follows:
C=250+0.5DI

Q. "Suppose that Canada produces 1.0 million bicycles a year and imports another 4.0 million; there is no tariff or other import barriers. Bicycles sell for $400 each. Parliament is considering a $40 tariff on bicycles. What is the maximum net national loss that this could cause Canada? Illustrate what is the minimum national loss if Canada is a small country that can not affect the world price?

Reference no: EM1347780

Questions Cloud

Determine the amount of interest : Suppose you plan to buy a $ 175,000 house using a fifteen year mortgage obtained from your local bank. The mortgage rate offered to you is 7.75%. Determine the amount of interest

Cadence and cross master and departmental budgets : Five years ago, Jack Cadence left his position at the large company to start Advanced Technologies Co. (ATC), a software design company. ATC's first product was the unique software package which seamlessly integrates networked PCs.

Information about motivation : Information about Motivation - Expalin how can a team be motivated to accomplish group goals?

Question on personal budget : You're interested in developing the budget but are struggling with basics - do the numbers have to be exact? Can a budget have any flexibility in it? First, describe what a budget is.

Illustrate what is the minimum national loss if canada : Illustrate what is the minimum national loss if Canada is a small country that can not affect the world price.

Find out the magnitude and direction of the impulse : what happens to light of a particular frequency when it is incident upon the material that natural frequency is the same as the frequency of the light.

Find the evaluate training programs : What motivation do companies have to evaluate training programs and how would evaluation help the company reach its long term goals?

Objective questions based on inflation rate : If the inflation rate in US is greater than the inflation value in Britain, other things held steady, the British pound will:

Advertising budget : Suppose you're a field marketing professional, responsible for marketing your company's products in South Florida region of medium-size corporation. One day you receive the CD from your corporate marketing group (based in Detroit, Michigan) which ..

User Account

All Pages