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An economy is described by the following equations:
a. Write the equation for the aggregate demand curve.
b. Suppose that P = 15. What are the short-run equilibrium values of output, the real interest rate, consumption, and investment?
c. What are the long-run equilibrium values of output, the real interest rate, consumption, investment, and the price level?
What is the profit-maximizing price and output level. Solve this algebraically for equilibrium P and Q and alos plat the MC, D and MR curves. b. What profit do you expect that the firm will make in the first year? c. Do you expect this profit leve..
To do this, you must determine how many workers the firm should hire for different values of the wage rate in order to maximize profit. Complete the table below: Wage Rate Per Worker Quantity Demanded of Workers $45 $75 $225 $270 $320 $340
A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.
A monopolist with marginal cost c faces inverse demand function P(Q) = A- BQ, where 0 0. a. Calculate the competitive level of output. b. Calculate the monopoly price and output. Illustrate the monopoly equilibrium graphically.
Your annual fixed costs are $50,000, marginal costs are $10 per unit, and you are producing 50,000 units per year. In the short run, what is the minimum acceptable price level before it makes economic sense to shutown
Hernandez Corp. uses two variable inputs, X and Y, to produce its final product, canoes. Its engineering department has estimated the marginal product functions for inputs X and Y as follows: MPx = Y/X MPy = 4 X/Y Where X and Y denote.
a model of the determinants of health combines three economic variables and two economic relationships. for instance
Calculate the points on the aggregate demand curve when the price level equals 0.75, 0.80, 1.00, 1.20, 1.25, and 1.50. Compute the price level and real GDP in periods 1-6. Describe the cyclical behavior of real ..
If I invested 10,000 in a fund paying 0.2% annual fees and added $100.00 per month for 40 years, receiving 10.4% annual returns what happens to the investment with 3.43% annual inflation What is the value in terms of today's dollars
You have the following end of year cash flows: Y0 = $400 Y1 = $300 Y2 = $200 Y3 = $100 Y4 = $0 Y5 = $0 Y6 = $0 Y7 = $500 Y8 = $500 Y9 = $500 Equate the following cash flows to equal cash flows in years 5,6,7,8 and 9. Let i = 8% per year.
Sharon sells a government security worth $4,600,000 to the Federal Reserve Bank of Kansas City. She then deposits the funds in her checking account at First Commerce Bank. Her checking account had a $150,000 balance before this deposit.
Suppose that fixed costs increase by $50 but the prevailing market price remains unchanged. Using algebra determine the effects of this change in cost on the profit maximizing output and the optimal profit. Algebraically calculate the profit maxim..
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