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(b) Answer the following questions using the aggregate expenditures model of the economy described below. C = 90 + .7Yd T = 50 + .2Y Ia = 36 Ga = 45 Xa = 62 M = .16Y i. What are the marginal propensity to consume, the marginal tax rate, and the marginal propensity to import? ii. What is the saving function? What is the marginal propensity to save? iii. What is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw? iv. What is the equilibrium level of real GDP? v. What is the size of the multiplier? vi. Suppose the full employment level of real GDP is $350. Does a recessionary gap or an inflationary gap exist? How can the government eliminate the gap by altering government expenditures?
Mary Smith, a customer, buys the Best product to use in the demolition of her office building. Due to a defect in the product, John Doe, an employee of Mary's, is injured. He sues Mary Smith, Best and AI. Discuss the ramifications of this case if ..
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1. why do most cities in the united states now have more radios but fewer radio repair shops than they did in 1960?2.
You are the manager of a monopoly and your demand and cost functions are given by P=300-3Q, C(Q)=1,500+2Q^2, respectively. What is the profit-maximizing price and output?
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. Use the T-accounts to illustrate and explain your answer. Central bank purchases $30 million of government securities for Chase Bank.
although new york state is second only to washington state in production of apples its production has been declining
Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 - 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs.
Draw a picture showing both the marginal cost curve and the total cost curve for Fangorn Inc - Can you conclude something more general about cost curves when marginal costs are constant?
proposal aenvisages generation of electricity from water - a hydro-electric project. the useful life of this project is
if the demand curve for wheat in the united states is p12.4 - qd where is the p is the farm price of wheat in dollars
Now suppose that a scientific study find that tap water is toxic, and everyone should drink only bottled water. Illustrate the impact of this study on the market and each firm. Use graphs to illustrate your answer.
How much aluminum oxide and how much carbon are needed to prepare 644 g of aluminum by the balanced chemical reaction (below) if the reaction proceeds to 78.8% yield?
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