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Assume that the economy is characterized by the following structural equations:
C = 160 + 0.6 (4 - T)
I = 150; G = 150; T = 100.
a) Determine the equilibrium output level.18
b) If G increases to 200, what is the how equilibrium level of output? What is the value of the govt. expenditure multiplier?
c) If tax down to 50, by how much will equilibrium output increase? What is the value of tax multiplier?
What will happen to the shape of the money demand curve if the checking accounts bear interest? will it still slope down if the interest of the checking account is fixed while the
explain the profit maximizing/loss minimizing rule may be applied under the 3 scenarios
what are the function of budget
1) Consumption is positively related to stock market wealth but negatively related to taxes and tax rates.
Suppose the demand for guitars in State College is given by Qd = 9000 - 12P where Qd is the quantity demanded, and P is the price of guitars. Also, suppose the supply of guitars is
Find the labor force, the working-age population, the number of employed workers, and the number of unemployed workers. Unemployment rate 5.60 % Participation rate 62.50
Collecteconomic data for three countries: Australia, China and Greece.The data is toobtainedfrom official sources as time series forthe key macroeconomic variables. These arereal G
Camping at Wilson's Promontory, a national park in Victoria, isn't free, but for many years now not everyone who wants to camp at Wilson's Promontory during the Christmas holidays
It is assumed that the hazaed rate for a pressure valve is given by h(t)= 1/5+t. 1. What is the cumulative probability function of failure F(t)? 11. What is probability densi
What do you mean by Gross Domestic Product? Gross Domestic Product (GDP): It measures the value of economic activity which is output produced, into the geographical bound
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