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Suppose that the economy is characterized by the following behavioral equations:C=160 + 0.5(Y-T)I = 150G = 150T = 1001. What is the consumption spending C at the equilibrium?
2. The government is willing to consider an increase in public spending only if the multiplier is higher than 1.5. Base on your calculations will the government implement the increase in government spending?
What is CEO Toback's most pressing concern and how could he go about addressing this concern?2. Do you agree or disagree with the assessment of the concern and the plan to address this concern? Why or why not?
Sonic Boom Corporation sells drum sets. At a price of $600 per set, they sold about 500 sets per month. The new general manager for this product, Eli Sticity, decided that the company needed more revenues and increased the price to $700 per set.
Rolled ball screws are suitable for high precision applications such as water jet cutting. Their total manufacturing cost is expected to decrease because of increased productivity, as shown in the table. determine the equivalent annual cost at an ..
Firm A has done a market study and knows whether demand is high or low, but Firm B does not. The two firms choose quantities simultaneously. Find the Bayes Nash equilibrium in this game.
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%.
The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $3,000 next year. A salesman from Superfiber Insulation, Inc., has told you, the plant engineer, that he can reduce the heat loss by 80% ..
Tamara received $500,000 from an insurance company. She wants to to deposit this in a savings account that earns interest at a rate of 6% compounded monthly. Then she would like to make 60 equal monthly withdraws over five years.
Suppose that the Acme Gumball Company has a fixed proportions production function that requires it to use two gumball presses and one worker to produce 1000 gumballs per hour. The cost function is TC = q(2v+w), where q is the output of gumballs per..
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
How do you relate the most recent unemployment rate (Look for Jan, 2012 data on unemployment rate) to your conclusion of this question indicating if the US economy is in a state of full employment. Feb 2012 unemployment data will be announced on M..
Mr. Jones has deposited his life savings of $70,000 in a retirement income plan with a local bank. The bank pays a. 10%, b. 11.25%, per year, compounded annually, on such deposits.
short-term parkers and all-day parkers with respective demand curves of Ps=3-(Qs/200) and Pc=2-(Qc/200). Here P is the average hourly rate and Q is the number of cars parked at this price. The garage owner is considering charging different prices ..
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