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With fixed government expenditures of G = 150 and fixed taxes of of T= 200. Assume that that consumers behave as described in the following consumption function:C= 150 + .75(Y-T)
Suppose further that investment spending is fixed at 100. Calculate the equilibrium level of GDP. Solve for equilibrium levels of Y, C, and S
Next assume taxes were reduced by 20 to a level of 180. Recalculate the equilibrium level of GDP using tax multiplier. solve for equilibrium levels of Y, C and S, after the tax cut.
Many retirement funds charge and administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $5,000 in the same stock this year. Alexx invests directly and earns 5% a year. Spenser uses a retirement fund and ear..
When the colts won the super bowl the demand for peyton manning's jersey was: P = 210 - 0.002Q with a corresponding marginal revenue of: MR = 210 - 0.0004Q IF the marginal cost of producing a jersey is $10, how much are the trademark licensing rig..
Your state is trying to determine how many vanity license plate it will be able to sell at various prices. Regular license plates cost $20 and the state's per-capita income is $ 30,000.00 A survey of other state's with the sme population
some company uses capital and labor to produce gizmos. the marginal product of capital is 600, and the marginal rate of technical substitution of labor for capital is 1/4. Calculate the marginal product of labor.
A Whoey option pays the difference between the final price and the maximum price of a stock over the period of the option. For example, if the price of a stock is 200, 220, and 234 in the previous periods (here periods 0, 1, and 2), the maximum pr..
The Fox River is boarded on the east by Illionis Route 25 and on the west by Illionis Route 31. along one stretch the of river, there is a distance of 16 miles between adjacent crossings. An additional crossing in this area has been proposed, and ..
The revenue and cost functions for producing and selling quantity x for a certain production facility are given below. R(x) = 16x - x2 C(x) = 20 + 4x a) Determine the profit function P(x). b) Use Excel to graph the functions R(x), C(x) and P(x) for t..
Copper Refiner Phelps Dodge purchased a model MTVS peristaltic pump for injecting antiscalant at ite nanofitration water conditioning plant. The cost of the pump was $950. If the chemical cost is $10 per day, determine the equivalent cost per mont..
A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm has a marginal income-tax rate of 40%.
if the rate discount is 20 percent, A. would you rather receive $ 100 today or $ 120 in one year B. would you rather receive $ 205 today or $ 240 in one year C. would you rather receive $ 500 in one year
a contractor make improvements to a business rental for a fixxed price of $64,000. With this improvement you can obtain additional rent payments of $1,200 per month.estimate the improvements will cause extra monthly expenses of $50 for property ta..
Consider a monopolist facing a demand curve given by P = 20 - q, where P is the market price and q is the quantity sold. The monopolist's marginal costs are MC = 2 per unit; there are no other costs. What is the deadweight loss generated
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