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(a) Answer the following questions using the aggregate expenditures model of the economy described below. C = 80 + .6Yd T = 40 + .2Y Ia = 28 Ga = 64 Xa = 76 M = .18Y 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 $340. Does a recessionary gap or an inflationary gap exist? How can the government eliminate the gap by altering government expenditures?
Calvins's Barber Shops, Corporation, has a monopoly on barbershop services provided in the south side of Chicago because of restrictive licensing needs, and not because of superior operating efficiency.
Create an educated guess as to illustrtae you expect to happen to short-term.
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Illustrate what it says regarding the current state of the economy and the latest reading and trend.
Describe the benefits and costs associated with each type of externality. What happens to the Supply and/or Demand curve.
Fastly Delivery Corporation has two divisions.
Assume the graph below represents the market demand for a patented prescription drug together with the marginal cost and average cost functions for producing the drug. Draw the marginal revenue function for this firm.
Elucidate how tax credit to a business would help to stimulate the economy.
Discuss the impact of these relations in the economies of Europe, China, and the U.S. Create a table in Microsoft Word to present the data and your analysis based on the data.
A marketplace has only two sellers. Both are trying to decide on a pricing strategy.
A large rear dump truck working in a coal mining operation under good conditions has a present purchase price, compute the estimated repair cost per operating hour.
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
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