Economics of Enterprise Answers

To what extent does PPP explain exchange rates? What is the relation between the two?

Assuming an 8 percent sale tax is levied on all consumption, complete the following table:
Income | consumption | sale tax | Percentage of Income Paid in Taxes
10,000 $11,000
20,000 $20,000
40,000 $36,000
80,000 $60,000

Question 3: The relationship between nominal exchange rate and relative prices. From the annual
observations from 1980 to 1994, the following regression results were obtained, where Y = exchange
rate of the German mark to the U.S. dollar (GM/$) and X = ratio of the U.S. consumer price index to
the German consumer price index; that is, X represents the relative prices in the two countries:
ˆYt = 6.682 − 4.318Xt
r 2 = 0.528
se = (1.22)(1.333)
a. Interpret this regression. How would you interpret r2?
b. Does the negative value of Xt make economic sense? What is the underlying economic theory?
(4

Which of the following are included in the Gross Domestic Product (GDP), according to the expenditure approach?

We've seen that the government spending multiplier and the multiplier for changing taxes are different. For political and macroeconomic reasons governments often run balanced budgets. Suppose that G=T. Then suppose that the government increases spending and taxes equally to maintain a balanced budget. IE that:



\begin{align*}
G^{'}&=G+\Delta\\
T^{'}&=T+\Delta
\end{align*}

What is the value of the balanced budget multiplier. IE what multiple of delta does Y increase?



https://fred.stlouisfed.org/series/GDPC1



https://fred.stlouisfed.org/series/UNRATE

Implications of slow adoption of modern technology on the national economy?

Poorer countries started to develop economically when they

need help with this :) at least just the formulas


https://s29.postimg.org/72ap1vchz/IMG_20161214_171936.jpg

The firm fixed costs is RM100,00 per year. Management expects to sell 2,000 units per year and at that rate of output, TVC will be RM50,000. The firm uses cost-plus pricing to earn a target rate of return on its RM200,000 investment. If the price is set at RM100, what is the target rate of return

In a small country town, the demand for bread is Pd = 200 - 0.1Q. The supply of bread is Ps = - 50 + 0.4Q. P is the price of bread (in cents) and Q is measured in number of loaves per day