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Explain, using the mathematical definition of equilibrium Y, Ye, the role played by autonomous spending in determining the size of Ye and changes in its size. Now, assume that there is a change in Ip of $100 and a change in G of $100, and that for every new dollar of income household saving rises by 25 cents; by how much will Ye change, if at all? Your third task is to compare this effect on Ye of the follow two other changes: A rise in G of $100 and a rise in Ta of $100 - is the effect the same as above? Why or why not? What if we had a rise in G of $100 but a fall in NX or $100 - would the change in Ye be the same? Why or why not?
If they make all the payments as called for, what is their loan balance on December 31 of this year?
You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to investigate this concept.
If the price ceiling or price floor is ineffective, are the new consumer surplus, producer surplus and quantity supplied equal to the ones in a free market
After 1, 2, and 3 years, it will pay a dividend of $5.You expect to sell the stock after 3 years for $120. Is XYZ a good investment. Support your answer with Calculations.
Explain why the intergenerational correlation of earnings would likely become higher or lower for the following policy changes in the united states:
Derek consumes only rackets and tennis balls. His utility function is U(x,y)=x^2y^8, where x is the number of rackets consumed and y is the number of tennis balls consumed. Derek's income is $320, and the prices of rackets and tennis balls are $4 and..
Monopolistic Competition and Oligopoly (gaming systems) we have three major competitors Nintendo, Sony, and Microsoft,
After a long career an engineer retires with $1.4 million in a retirement account. The engineer spends $84,000 per year from this account in retirement and the account earns 3% interest per year. How many years will the retirement account last? Expre..
Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is
Suppose Mr Masaki operates a newspaper stand in japan. He sells the Japan Times and English newspaper published in Japan, at the same price as all other newspaper stands do. What is the price elasticity of demand for the Japan Times sold by Mr Masaki..
The market for DVDs has supply curve and demand curves given by P=2Qs and P=42-Qd, respectively. Calculate the equilibrium price and quantity of the DVD market. How many units will be traded at a price of $14? What participants (sellers or buyers) wi..
Assume there is uncertainty about the costs of disposing of the waste: There is a fifty-fifty chance that they will be $10,000 or #30,000. Discuss how this uncertainty affects the cost-benefit calculation, if the government is risk neutral, that is ,..
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