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Desired consumption and investment are Cd = 4000 - 4000r + 0.20Y; Id = 2400 - 4000r. As usual, Y is output and r is the real interest rate. Government purchases, G, are 2000.
d. Given the consumption function, what the value of the MPC?
e. Given the saving function you derived in part a, what’s the value of the slope of the saving curve?
f. Given the saving function you derived in part a and the investment function, what’s the value of the slope of the IS curve?
Elucidate why the return to deficit spending since the turn of the century.
Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantage were used in your simulation.
Unemployment spells and long term unemployment. According to the data presented in this chapter, about 47% of unemployed workers leave unemployment each month. What is the probability that an unemployed worker will still be unemployed after one month..
On a Cost Effectiveness Frontier graph, Treatment M is above Treatment N so connecting treatment M to treatment N is a downward-sloping line. What can we conclude?
Using the slope of the health expenditure function, predict the change in per capita health care expenditures that would result.
In order to reduce the unemployment rate jobs must be created... new jobs! Both the Federal Reserve and government have proposed a number of solutions and programs in order to create these jobs. In your opinion which do you believe is the most effect..
What is the firm's short-run demand function for input Z? How much input Z will the firm use when the price is $40? When the price is $80?
At the current price level, producers supply $375 billion of final goods and services while consumers purchase $355 billion of final goods and services. The price level is: A) above equilibrium B) At equilibrium C) Below Equilibrium D) More informati..
In 1796, Gottfried Christoph Härtel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated cost functions to make production decisions. Graph the total cost, average total cost, av..
Suppose the government imposed a price ceiling on a monopolist. Let denote the price ceiling, and suppose the monopolist incurs no costs in producing output. True or false: If the demand curve faced by the monopolist is elastic at the price, then the..
Does Defense Spending include transfer payments? Does Welfare (TANF) include transfer payments? Does Interest payments on government debt include transfer payments? Does social security include transfer payments?
Which of the following problems are likely to be studied by a macroeconomist and which by a macroeconomist?
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