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1. Consider an economy in which C = 1000 + 0.75YD, I = 200, G = 300, T = 300, and (X-M) = 0.
2. Calculate equilibrium GDP
3. Calculate saving at this level of GDP (Hint: use the equation for leakages)
4. Calculate the spending multiplier
5. Calculate the tax multiplier
6. How will equilibrium GDP change is G increases by 100, and what is the new equilibrium level of GDP?
7. How will equilibrium GDP change if G and T both increase by 500, and what is the new equilibrium level of GDP?
Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.
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The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
Describe the major factors that affect the degree of competitiveness in the semiconductor industry.
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Primary purpose of the legal reserve requirement is to provide a means by which the monetary authorities can influence the lending ability of commercial banks - Exam: 050475RR - MONEY, BANKING AND MONETARY POLICY
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which of the following statements concerning major cycles is incorrect?a. major cycles are characterized by wide
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