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2. (45 points total - 5 points each part except part e) A closed economy has full employment level of output (Y) of 2,000. Government purchases, G, are 200, taxes (T) are 400. Desired consumption (Cd) and investment (Id) are: Cd = 550 + 0.5(Y -T) - 600r Id = 600 - 400r We now have a change in the desired investment function - it is now: Id = 570 - 400r c) Name four reasons why the desired investment function would change the way it did. d) Resolve for the goods market clearing interest rate and the associated levels of desired savings and investment.
How does knowledge of value elasticity between different groups of consumers or for several products enable managers to price discriminate, change different prices for these groups?
Using the given table, find out the quantity where MC = ATC. Find out the quantity where ATC is at its minimum. Find out the quantity that is the most efficient operating point for the firm.
If a small country wants to protect its domestic producers from more efficient foreign competition by imposing an import tariff, will it come out ahead Do consumers lose when a large country protects it's less efficient producers from foreign comp..
Two centuries ago there were more buffalo than cattle in the United States. Even though millions of cattle are killed for beef consumption each year, the cattle population continues to grow while the buffalo are virtually extinct. Why?
Three students have each saved $1000. Each has an investment opportunity in which she can invest up to $2000. Here are the rates of return on the students' investment projects: Minji: 5% Yanrong: 8% Dorothy: 20%
Assume the market for natural gas can be explained by, Where P is the price of natural gas per million BTU, Q(D) is the quantity demanded and Q(S) is the quantity supplied of million BTUs of natural gas a day.
Fast-food chains like McDonald"s, Burger King, and Wendy"s operate all over the United States. Therefore, the market for fast food is a national market.
Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems. How does U.S. deficit spending affect our economy? Greece and Spain have introduced ..
The table lists the maximum feasible hourly rates of the production of pastries if no sandwiches are produced and the maximum feasible hourly rates of the production of sandwiches if no pastries are produced.
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits but are operating below their minimum efficient scale. Explain the long-run adjustments that will create equilibrium
What are governments fiscal policy options for moving the economy out of a recession Speculate on which of these fiscal options might be favored by a person who wants to preserve the size of government and a person who thinks the public sector is ..
Who has a comparative advantage in producing wine and who has a comparative advantage in producing schnitzel?
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