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Suppose the Central Bank of Brightland undertakes an open market purchase of securities of so that the monetary base increases by $5 billion. By how much will the quantity of money change?
What is the quantity of money in the economy?
C=50+.8YD
I=70
G= 200
TR=100
t=20
a. Calculate the equilibrium level of income and the multiplier in this model.
b. Calculate also the budget surplus, BS.
c. Suppose that t increases to .25. What is the new equilibrium income? The new multiplier?
d. Calculate the change in the budget surplus. Would you expect the change in the surplus to be more or less if C = .9 rather than .8?
e. Can you explain why the multiplier is 1 when t=1?
Describe how firms determine the optimum amount of the variable input and the best
stage of production in a short run production function. Give an adequate justification
mathematically and graphically
Assume you are managing a firm that recently entered in the transportation service, which
is meter taxi service similar with Ride, Feres and others. If you have to estimate the
demand for the transportation service you provide, (6 marks)
a. What would be the explanatory variables you include in a regression model?
b. Indicate how you may utilize the results of your demand estimation for decisionmaking.
c. How do you make your pricing decision?
d. What do you think is the market structure for meter taxi transportation in Addis? Give
your justifications
Assume Q=1000, W=Rs.4 and r=Rs.2 Determine efficient factor combination
combination of the inputs will be determined? Show graphically and mathematically
stage of production in a short run production function. Give an adequate justification
mathematically and graphically
statement? Give your reasons
#339914 on Dec 2023