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We will consider a closed economy, no exports or imports. In this economy: autonomous consumption is $3 trillion, autonomous investment is $1.5 trillion, autonomous government spending is $2 trillion, taxes are $2 trillion, d= .2, mpc=.5, and f=1.5
a) Derive the IS curve
b) What is equilibrium level of output for r=4%, 5%, 3%, 1%?
c) Suppose we are at a point below the IS curve? Is the goods market in equilibrium, if not how can it reach equilbrium?
d) Suppose the MP curve is r = 2+.5(pie) derive the AD curve.
Total surplus in a market does not change when the government imposes a tax on that market because the loss of consumer surplus and producer surplus is equal to the gain of government revenue. The Laffer curve is the curve showing how tax revenue var..
What is Import Substitution Industrialization (ISI)? Should a country adopt an Import Substitution Industrialization (ISI) policy or an Export Led Growth (ELG) policy and why?
Describe the similarities and differences between staffing for a stand-alone behavioral healthcare facility and a behavioral healthcare unit that is a part of a larger healthcare system
Germany is a net creditor nation where the Germans own more assets in the rest of the world than the rest of the world owns assets in Germany.
Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparat..
The task is testing the color-perception abilities of a newly discovered species of monkeys in the South Pacific. What are the steps?
The graph above depicts a situation where, if the market demand for the product increases, the prices of the resources used by the firms in the industry would
A car manufacturer has asked you to design a multidimensional database for its European marketing department.
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $12 million in withdrawals from other banks’ ATM machines. On average, noncust..
What is the margin of error in cm? (Round to one decimal place as needed.)
Upon what does the preservation of market power depend?
A committee of 4 is to be selected from a group of 12 people. How many possible committees can be selected if order matters?
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