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Macroeconomics
What are the necessary conditions for a monopoly position in the market to be established?
Macroeconomics
How do I calculate equilibrium national income when given T? For example: C=150+0.9yD yD=.8y I=400 T=0.2y G=700 X=130 IM=0.08y
Macroeconomics
How do you calculate GDP, GNP, NNP, national income, personal income, and personal disposable income?
Macroeconomics
Question 1
To get through his school week, Mark consumes only liters of diet coke (C) and Wawa subs (S). He
has a fixed budget of $ dollars to spend on food each day (money is non-transferable across days).
Mark’s goal is to maximize his utility, U, each day of the week subject to his budget constraint. His
preferences over diet coke and Wawa subs depend on the day of the week:
a. Compute Mark’s demand functions C* and S* for each day of the week.
b. Assume that liters of diet coke are $2 each and Wawa subs are $5 each. Mark’s fixed budget for
food is $10 a day. How many liters of diet coke and Wawa subs will Mark demand?
c. In celebration of the first day of snow, Wawa decides to have a big sale on its subs where the price
of subs is now $1 each. Mark’s fixed budget for food is the same as before. How many liters of diet
coke and Wawa subs will Mark demand
To get through his school week, Mark consumes only liters of diet coke (C) and Wawa subs (S). He
has a fixed budget of $ dollars to spend on food each day (money is non-transferable across days).
Mark’s goal is to maximize his utility, U, each day of the week subject to his budget constraint. His
preferences over diet coke and Wawa subs depend on the day of the week:
a. Compute Mark’s demand functions C* and S* for each day of the week.
b. Assume that liters of diet coke are $2 each and Wawa subs are $5 each. Mark’s fixed budget for
food is $10 a day. How many liters of diet coke and Wawa subs will Mark demand?
c. In celebration of the first day of snow, Wawa decides to have a big sale on its subs where the price
of subs is now $1 each. Mark’s fixed budget for food is the same as before. How many liters of diet
coke and Wawa subs will Mark demand
Macroeconomics
how to derive an aggregate supply curve assuming that money wages are rigid downward and flexible upward?
Macroeconomics
8. Using the AD-AS model show how the Australian economy has continued to expand year after year since 1991. What are the macroeconomic dangers facing Australia? When commentators suggest that the Australian economy is a two speed economy what are they referring to?
Macroeconomics
Demonstrate the effect of expansionary monetary policy in the AS/AD model when the economy is:
a: Below potential output.
b: Significantly above potential output.
a: Below potential output.
b: Significantly above potential output.
Macroeconomics
Consider the following
C= 400+0.4Yd
Yd=Y-T
T=100
I=400-1000r
G=100
(M/P)d=3Y-100r
Ms=1000
P=1
Where C is consumption, Yd is disposable income, T is the level of lump sum taxes, I is investment, r is interest rate, G is government spending, (M/P)d is real money demand, Ms is money supply and P is the price level.
(a) Calculate the IS and LM curve and find the equilibrium level of income and interest rate. What is the level of investment in equilibrium?
(b) Concerned that the current level of income is too low, the government announces an expansionary fiscal policy and increases government spending by 200. Find the new equilibrium values of output and interest rates. By how much has investment been crowded out?
(c) The level of income calculated in (b) is full employment level. What might be expected to happen if government does not increase spending by 200 as in (b)?
C= 400+0.4Yd
Yd=Y-T
T=100
I=400-1000r
G=100
(M/P)d=3Y-100r
Ms=1000
P=1
Where C is consumption, Yd is disposable income, T is the level of lump sum taxes, I is investment, r is interest rate, G is government spending, (M/P)d is real money demand, Ms is money supply and P is the price level.
(a) Calculate the IS and LM curve and find the equilibrium level of income and interest rate. What is the level of investment in equilibrium?
(b) Concerned that the current level of income is too low, the government announces an expansionary fiscal policy and increases government spending by 200. Find the new equilibrium values of output and interest rates. By how much has investment been crowded out?
(c) The level of income calculated in (b) is full employment level. What might be expected to happen if government does not increase spending by 200 as in (b)?
Macroeconomics
in 2009, ABC Company made $2M of net profit and spent $100,000 on advertisement. In 2010 , it made $2.5M of net profit and spent $150,000 on advertisment. Based on this information, if ABC's advertisment expenditure increases by $20,000 in 2011, how much do you expect its net profit to increase? Explain why the ratios of net profit to advertisement expenditure in 2009 and 2010 are different from the slope of the net profit advertisement relationship.
Macroeconomics
the rate of growth of real gdp
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#339914 on Dec 2023
#339914 on Dec 2023