The following data characterises the macroeconomic conditions of a hypothetical еcoпотy: C = 50 + 0.8 Ya I = 100 G = T=75 where C, I, and Y,are consumption, investment and disposable income respectively. Calculate equilibrium income of the economy. What is the value of multiplier?

Q: Using the supply and demand functions below, derIve the demand and supply curves if Y = $55,000 and ...

A: Given:- Demand, Q=8.5-P+0.01Y Supply, Q=9.6+0.5P-0.2Pc Y=$55,000(thousand) Pc=$13 Please find the im...

Q: What happens to employment in country A after minimum wage is introduced?

A: Labor Force refers to the total number of workers that are willing to work at the given wage levels ...

Q: Consider a strategic interaction between firms 1 and 2. In Stage 1, firm 1 chooses the level of adve...

A: Aggregate demand function : P = 6a - q1  - q2  In a simultaneous profit maximizing  game both firms ...

Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice,O, $1 each. Her income is ...

A: Equation for budget constraint: PX * X+ PY * Y = M where, PX and PY are the price of goods on X and ...

Q: 2. Assume the following equations summarize the structure of an economy. C=Ca+0.85 (Y –T) C2= 260 – ...

A: We have  Consumption function: C=Ca+0.85Y-T       Autonomous consumption is the function of interest...

Q: Which of the following describes a characteristic of banks? O a) Banks are the only type of financia...

A: Financial intermediaries refers to organisations that channel from savers to borrowers.

Q: .At a certain interest rate compounded annually, P100,000 will become P450,000 in 15 years. What is ...

A: We have given that  Present value P =100,000 Value after 15 years =P450,000 We have to find value at...

Q: Joe is a college football player considering whether to attend another year of college or to enter t...

A: When talking about marginal analysis in economics, it refers to analyzing the cost and benefit assoc...

Q: Player 2 L 1,0 0,1 Player 1 0,1 1,0 Suppose Player 2 is using the following strategy: she plays L wi...

A: In-game theory, there are many distinct sorts of tactics, and they all revolve around the player's a...

Q: An inventor found a new way to produce more steel from each ton of her country’s iron ikr. How would...

A:

Q: What were other sources of economic growth besides slavery?

A: Economic Growth is the increase in the output or production of goods and services in the country dur...

Q: why economic development is important in the study of business management?

A:   Meaning of Microeconomics: The term macroeconomics refers to that situation under which the econom...

Q: The inverse demand for tea is given by P= 12 - 0.03Q, where P is the price per a gram of tea and Qis...

A: Equilibrium price is achieved when marginal cost is equal to marginal revenue for firms . This condi...

Q: Pranav's household consumes 1,000 litres of gasoline per year. After $0.15 gasoline tax was introduc...

A: Answer -

Q: 2. Assume the following equations summarize the structure of an economy. C=C,+0.85 (Y - T) Ca = 260 ...

A: Planned expenditure: Ep = C + Ip + G + NX => Ep = Ca + 0.85(Y-T) + 1500 - 30r + 1700 + 500 - 0.08...

Q: Consumer has utility function ln(c1)+beta*ln(c2), where beta=1. Interest rate i=50%. Income y1=10 ...

A:

Q: IT Anna WIll take one 1d only Jobs, oppor rtuni Ity of

A: Opportunity cost : It is the potential benefit that an individual, producer or investor misses out w...

Q: ​If the marginal propensity to consume of an economy is 0.7, then the simple spending multiplier is:

A: Marginal propensity to save is defined as that proportion of the aggregate increase in income which ...

Q: Explain why each of the following statements is True, False, or Uncertain according to economic prin...

A: In an economy, when analyzing the international bete goods market and money market, IS-LM model is u...

Q: 2) If the expected return on U.S. T-Bonds falls from 3 to 2 percent and the expected return on corpo...

A: Given, The expected return on U.S. T-bonds changes from 3 to 2 percent and The expected return on co...

Q: Use the following graph (shifts in the supply of loanable funds) for the next five questions. Intere...

A: Supply refers to the amount of a resource that businesses, producers, laborer's, financial asset pro...

Q: QUESTION 5 If the error terms of a linear regression model exhibit heteroscedasticty, which of the f...

A: If the error terms of linear model is not homogeneous then we have the problem of heteroscedasticity...

Q: In an economy with high unemployment, the central bank has room to decrease the interest rate. Polic...

A: In an economy, when talking about interest rate, it is considered as the cost to a borrower who borr...

Q: A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M....

A: A decrease in the book value of fixed assets is known as depreciation. The loss of value of assets d...

Q: DRAW CASH FLOW DIAGRAM Suppose that P 4500 is deposited each year into a bank account that pays 8% i...

A: A series of money paid at regular intervals is known as an annuity. Monthly savings account deposits...

Q: A long run total cost curve   a.   must be equal to zero when output is zero   cross out   b...

A: In the mentioned question we have been asked what will be the value of long-run total cost if the ou...

Q: As a shareholder of a Construction firm, it has been decided by the Board to purchase a new 18- whee...

A: Given the present purchase cost of truck = $60000Time = 12G = $400Annual expense = $18000Salvage val...

Q: In your response, be sure to address all parts of the question. Use complete sentences; an outline o...

A:  Laissez-faire is a economic hypothesis is a strategy of least government obstruction in the financi...

Q: Is there hope for a country to grow in economy

A: Growth Rate: The magnitude of the growth rate can be determined by dividing the absolute change by t...

Q: a. Carefully explain why the basic framework of supply and demand is not sufficient to analyze the m...

A: Predominantly, under the gamut of microeconomics is the underlying behavioural theory of individual ...

Q: Consumer has utility function In(c1)+beta*In(c2), where beta=1. Interest rate i=0%. (NOTEI) Income y...

A: Answer: Given, Utility function: U=lnc1+beta×lnc2substitute, beta=1U=lnc1+1×lnc2U=lnc1+lnc2 Interest...

Q: the difference between gross income and disposable income. the percentage reduction in taxes due to ...

A: Average Propensity to Save can be defined as the amount of the disposable income that is saved. It i...

Q: Countries with higher levels of real per capita gross domestic product (GDP) tend to have O a) longe...

A: Per capita GDP is defined as the metric under which a country's output per person is calculated by d...

Q: Economic theories about growth a) are mainly used for teaching. O b) have had no influence on govern...

A: Economic theory is a theory that simplifies the reality of an economy to make predictions about the ...

Q: Year Price of a pound of Bacon (10 units) Price of a dozen Eggs (15 units) Price of a pound of Coffe...

A: The market basket includes 10 units of Bacon, 15 units of Eggs, and 20 units of coffee. Bacon is mea...

Q: Discuss How is Economic Development related to human rights issues.

A: Human rights implies freedom of rights which again implies equal access to education and health that...

Q: ABC

A: The Consumer Price Index (CPI) is a measure of an economy's overall price level. The CPI is made up ...

Q: 6. Because of the peso devaluation, a car costing P150,000 is to be purchased through a finance comp...

A: The loan is taken from the financial firm in order to buy an asset.The financing firm enables the bo...

Q: f a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the s...

A: From the graph,  The demand curve passes through (0, 26) and (8,18) and the supply curve passes thro...

Q: A person in the U.S. with a stable job making $100,000 can get a loan to buy a new car at about 4% (...

A: Nominal interest rate is the cost of borrowing  . And it is given on the basis of ability to pay the...

Q: 4. Compare the accumulated values at the end of 5 years if P100,000 is invested at the rate of 12% p...

A: Interest rate is income earned on the amount invested for certain period compounded. In this case ea...

Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...

A: Cost-benefit estimation is a long-deployed economic strategy that endeavours to provide a synopsis o...

Q: Lecture question 4.What is the 2008 peak price in today's dollars? Nominal price CPI July 2008 Febru...

A: Consumer price index is the index shows the average price changes of goods and service shows the liv...

Q: Consider a firm for which production depends on two normal inputs, labor and capital, with prices w ...

A: (a) The change effect reflects the company's change in the input combinatioñ due to the change in th...

Q: QUESTION 4 Neverland is a closed economy that severed all links to the outside world. Its economy ca...

A:

Q: 9. In general, elasticity is a measure of a. the extent to which advances in technology are adopted...

A: When talking about elasticity in economics, it is the measurement tool used at the marketplace to an...

Q: A price floor isfitis set the manke pice O binding above O inding below 0 eficient; above O eficient...

A: Price floor is the minimum price that must be paid to sellers. Price cannot fall below this level.

Q: A regional infrastructure building and maintenance contractor must decide to buy a new compact horiz...

A: Given:- System cost=$68,000 Estimated or purchased now=$81,000 i=12% f=5% Please find the images att...

Q: QUESTION 1 S+M $75 50 $120 200 240 320 GDP In equilibrium in the above private open economy: O expor...

A: Net export:- Net exports can be explained as a metric for a country's overall trading. The calculati...

Q: How much money would you have to deposit for 5 years consecutive years starting one year from now if...

A: We have given the following cash flow