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Keynesian Cross ROUND ALL CALCULATIONS TO TWO (2) DECIMAL PLACES
a. Please draw the Keynesian Cross assuming the following information. Be sure to specify at what point consumption and disposable income are equal. Marginal Propensity to Consume = .67 Autonomous Consumption = $850
b. Assume that your disposable income is $1250. How much are you consuming? Are you saving or dissaving?
c. Assume that autonomous consumption decreases to $256. Please illustrate this change on graph from part a. Again, you must specify at what point consumption and disposable income are equal.
d. Based on the change in part c, illustrate what will happen to aggregate demand.
Which of the following is NOT a reason that we discussed for global imbalances that arose in the early 2000s and persist to some degree to this day?
A manufacturing company invests $100,000 in a new piece of equipment. Operating expenses for this new piece of equipment is estimated to be $4,000 starting EOY1 and increasing by $200 per year at the EOY2 and for the next 9 additional years. Draw a c..
In planning for your retirement, you would like to withdraw $50,000 per year for 20 years. The first withdrawal will occur 20 years from today. What amount must you invest today if your return is 10% per year? What amount must you invest today if you..
"I cut production not because costs were too high, but because demand was too weak." "I cut production not because demand was too weak, but because costs were too high." Which statement best reflects the Keynesian view of national income determinatio..
An energy company orders metric tons of liquid natural gas that is used at the rate of 1,000,000 metric tons per year. Delivery lead time has averaged 8 days. What is the economic order quantity (in metric tons)? What is the total holding cost for th..
Which of the following statements about setting optimal two-part tariffs for many consumers is NOT true? The number of buyers (entrants) declines as the entrance fee (tariff) increases. The profit from the entrance fee (tariff) is a concave function ..
Your firm's research department has estimated your total revenues to be R(Q)=3,000-8Q^2 and your total costs to be C(Q)=100+2Q^2. What is the maximum level of net benefits?
q1. in reference to financial perspective you have financial perspective customer perspective process prospective and
Assume that the economy's real GDP is growing. what will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over tiem? If the Fed changes the money supply to match the change in money..
When using a supply-and-demand model to illustrate how land rents are set, economists typically draw the supply curve as a vertical line because: a. The supply of land is fixed. b. The supply of land is perfectly inelastic. c. The quantity supplied o..
Assume that the nation is not large enough to affect the world price. Illustrate the effects of a tariff on imports.
Did you know that many large countries utilize a national sales tax, or value added tax, to raise revenues? What if, -in an effort to FIX THE ECONOMY, the U.S. decided to do this? What other countries are doing this and to what degree of success?
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