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The following equations apply to an economy: C=400+.9(Y-T) I=250-50r (M/P)d=Y-300r You also know that government spending and taxes are 500 and the nominal money supply is 4000. The price level is 2. Make sure you simplify your equations. a) Derive the IS equation. b) Derive the LM equation. c) Solve for the equilibrium of the IS-LM. What are the values of the real interest rate and income?
Expand his shop in that way allowing more customers to be served on a Saturday morning?
"Anyone who tells you that markets left to their own devices always lead to socially beneficial outcomes is talking utter nonsense." Do you agree with this statement? Defend your position.
Beth has plans to go to a play and already has a $50 non refundable, non exchange able, and non transfer able ticket. Now Carl, whom Beth has wanted to date for a long time, asks her to a party.
From 1982 to 1986 retail sales of furs in the U.S rose from $0.4 billion to 1.0 billion. After this time, there was no additional growth until 1989 when sales increased slightly to $2 billion. Subsequently there was a plunge in fur sales which droppe..
The owner of a baseball team and local stadium has commissioned a study that showed the demand by fans for stadium seats (per playing date) to be P = 22 - 0.2Q, where P is the average price of a ticket and Q represents the number of seats (expressed ..
Describe the least cost combination of L and K when output is produced at the rate of 1,000 tons per day. Determine the required outlay for 1,000 tons per day.
Intel is a monopolist manufacturing computer chips with a competitive fringe of firms that act as price takers of the price Intel sets. The market willingness to pay for the P80 chip is given by p = 400 - Q, with p in dollars per chip and Q in thousa..
Assume the economy has a Cobb-Douglas production and is in a steady state. Calculate the technology growth rate for this economy. What is a the marginal product of capital for this economy
Explain how a bank's ability to create transaction deposit accounts through loans creates money. Corben Inc. has a successful brand with the name Crunz. The market size in which Crunz competes is $4 billion, and Crunz has generated sales of $400 mill..
Compute the opportunity costs of going to each concert. Based on the Cost-Benefit Principle, which concert is the best choice.
The demand for gasoline is inelastic and the supply of gasoline is elastic.
What is output that should be produced to achieve economic efficiency and the value to society for correcting the externality.
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