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If the marginal propensity to save in a closed economy is 0.25 and a lump-sum tax is imposed, the slope of the economy's aggregate expenditures schedule will be:
The market demand curve for a perfectly competitive market is given by p=440-10Q. the market supply curve is given p=4Q+20. calculate the equilibrium price and quantity in the market.
What are some of the limitations of the national income accounts in how they represent our standard of living?
In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fact consistent with our discussion of specific investments?
China and Japan do a lot of international trade with each other. If both countries begin in general equilibrium and then the Peoples' Bank of China (the central bank) engages in an autonomous moneta
Oil alone as in our examples. Will fields with both oil and gas have greater difficulties in unitization than fields with oil or gas alone? Explain.
Calculate the marginal product of labor when 9 units of labor are utilized. Suppose the firm can hire labor at a wage of $10 per hour and output can be sold at a price of $100 per unit. Determine the
what range of payments will the farmer accept? (Remember that negative payments are also possible.) Answer the same questions for the fifth day.
Assume that two UK government bonds have same face values with £100. One has an outstanding maturity of 2.5 years. Its coupon rate is 9.75% and coupons are paid semi-annually. If investors dem
Suppose the consumption function is C = $500 billion + 0.9Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier
If the government decides to increase its expenditure by £10 billion what will be the new equlibrium level of output/income.
Compute the cash flows associated with retaining the old machine in years 1 to 2. If the firm needs the service of these machines for an indefinite period and no technology improvement is expected i
Use the endogenous growth model to determine the e?ects of this on the paths of aggregate consumption and aggregate output overtime. Is it clear that this investment in the new schools a good idea?
Assume that the new equipment will save only $15,000 a year, but that its economic life is expected to be 12 years. If other conditions are as described in (a) above, should the company buy the prop
If the interest rate is 10% and the employee's travels are anticipated to be 12,000 kilometers annually, what is the equivalent cost per kilometer (without considering any income tax)?
A frim producing the good in this market has the short-run production function Q=60L^2-L^3. Find the labor input that maximizes output.
Consider the production function Y=(√K)(L). Is this production function characterized by constant returns to scale? Explain.
Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rater than own them and staff them with employees?
If, on average, Japan's real per capita output grew at a rate of 3 percent per year between 1973 and 1993. What would Japan's output per capita have been at the end of 1993?
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase?
In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation? What term do economists use to describe this second outcome?
Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
What is 'Crowding Out' effect and 'Automatic Stabilizers'? What impact do they have on the economy? This is a discussion question there is no word limit but should be answered fully.
Institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force? What is the official unemployment rate?
Explain the major factors that affect the degree of competitiveness in your industry. Use the data to develop at least three (3) measures (e.g., productivity measures) to show how the industry is ev