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Should the measure of imports used in the GNP (or GDP) accounts therefore be defined to include only imports of final goods and services from abroad? What about exports?
What is the equilibrium level of income and derive the savings function and find the level of savings in this economy
Your company manufactures controllers used in the production of commercial air conditioning units and currently selling them at $50 each. Marginal costs are $30 for production up to 10,000 units per month.
Due to severe damage, a gas pipeline supplying gas to Arizona was shut down for some weeks in summer of 2003. Gas became scarce in Arizona, and prices increase,
Draw a graph of the market for banana. What are the equilibrium price and quantity? Explain why. If the price of banana was $1.50 a box. What would be the situation in the banana market (shortage or surplus)? Explain why and how the price and quanti..
Suppose we are at a long-run equilibrium point in an AD-AS model. Then the money supply falls. In the short run, is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the m..
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules. Illustrate what exactly is that disagreement.
What is the net effect on the money supply in the economy? Show your work. Assume instead that Sammy uses the $10,000 he receives to pay back a loan from Bad Boys Bank. $8,000 goes to repay the loan itself, and $2,000 represents his Interest payme..
An increase in the aggregate demand for goods and services will result in an increase in the amount of output firms are willing to produce, and this increase in output will be accompanied by: a. a decrease in the inflation rate.The long-run aggrega..
Do the utility maximizing amounts of X1 and X2 change if P1 increases to 5 while P2 stays constant at 5? Why or why not? Do the utility maximizing amounts of x1 and x2 change if P2 increases to 9 while P1 stays constant at 4? Why or why not? For a ..
Suppose that the tax rate on the first $10,000 income is 0; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $30,000; and 40 percent on any income over $80,000.Family A has an income of $40,000 and Family B has..
What is the difference between contractionary and expansionary monetary policy?
Illustrate why do economists pay more attention to national economies than state or regional economies.
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