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In the Keynesian cross model, assume that the consumption function is given by
C=120+0.8*(Y-T)
Planned investment is 200; government purchases and taxes are both 400.
Graph planned expenditure as a function of income.
What is the equilibrium level of income?
If government purchases increase to 420, what is the new equilibrium income? What is the multiplier for government purchases?
What level of government purchases is needed to achieve an income of 2,400? (Assume taxes remain at 400.)
What level of taxes is needed to achieve an income of 2,400? (Assume government purchases remain at 400.)
Illustrate what will be total effect on M3 money supply. Explain illustrate what steps can be taken by Fed to reduce M3 money supply in economy.
q1. following the passage of comparable worth legislation unity college responds by placing salaries at w a between the
Unions tie the hands of management and inhibit efficient decision making. Unions contribute to economic efficiency in that union wage pressure hastens the weeding out of the high-cost, least efficient producers in each industry.
How does a bank examiner use a UBPR (uniform bank performance report) to understand a bank's historical trends and their future prospects?
If the Federal Reserve wishes to put upward pressure on market interest rates, what would it be most likely to do? How would it proceed to push the Federal funds rate in an upward direction? How would it lower the funds rate? Describe the trade-offs ..
How is this shifting of AD curve going to affect the price level and output level of the economy.
Domestic produces often base their claim for import protection on the fact that workers in country X are paid substandard t wages.
You are given permission by the owner of the store to hire a fellow classmate to help out. One day you see the classmate take some clothing from the store.
Consider the case of a poor country that receives foreign aid. The aid consists on donations to consumers which represent an increase in their lifetime income of 5%. One of your economist friend is against this foreign aid program. He says that it do..
If your holding period is 1 year i.e., you have to sell this bond after one year, what price will you end up selling at. Show your work. What is your effective rate of return.
Using this demand function, find the total revenue function. What is the shape of the total revenue function.
What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics? Discuss the impact of rational self-interest on each of the following decisions. Suppose you go to a restaurant and buy an e..
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