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For the macroeconomic model in problem 23A.2, write the aggregate expenditure function. For GDP of $16,000, what is the value of aggregate expenditure, and what is the value of the unintended change in inventories? For GDP of $12,000, what is the value of aggregate expenditure, and what is the value of the unintended change in inventories?
Assume that the consumption of schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Reca..
what are the advantages and disadvantages of using import-substitution to accomplish industrialization rather than
In uncertain economic times, what serves as a way of preserving economic value that can be spent or consumed in the future? a. obtaining a credit card b. owning gold
Calculate an appropriate measure of association, and decide how to present the results. How might this information affect the advertising agency - Is the GPA of this year's students significantly different from the long-run average? At what alpha ..
Discuss the hicksian and slutskian approach to consumer behavior where there is change in price of one good given two goods
Suppose that the money market is initially in equilibrium for an economy. Describe with the aid of a diagram how market adjusts to an increase in money supply, an increase in real GDP
Does the structure of the drug industry have any bearing on the types of errors that drug firms are likely to make that is, would a drug industry made up of numerous highly competitive firms be more or less
To intermediate the mortgage market, Fannie Mae would obtain funds through issuing short-term commercial paper, and then use these funds invest in long term debt securities, creating interest rate risk.
Assume that as the result of recent labor negotiation, wage rates are reduced by 10% in the production procedure employing only capital and labor.
Perfect Temp is a mechanical engineering design firm that specializes in heating and cooling systems for factories and warehouses. What is the client's cash flow diagram for the following costs and savings of an air-to-air heat exchanger?
Describe situation in terms of an externality, describe this situation in terms of conflicting property rights claims - describe the tradeoff society faces in deciding how to settle matter.
The Haas Corporation's executive vice president circulates the memo to the firm's top management in which he argues for reduction in price of firms product. He says such a price cut will raise the firms sales and profits.
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