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Use a graph to explain the impact of a tax increase on output and interest rate in the IS-LM model.
9. Use 2 graphs to explain, in the Mundell-Flemming model, under flexible and then fixed exchange rate arrangement, the impact of money supply decrease on output and exchange rate.
Use a graph to demonstrate, in the Solow Model, how the saving rate affects the steady- state income level. In the model, does the saving rate affects the steady- state growth rate of income or growth rate of income per worker? Why or why not?
Without assuming exogenous technological progress, how does the endogenous growth model, e.g., the Y= AK model, explain income growth? Use algebra to demonstrate it. What is the difference between this explanation and that of the Solow model? Be aware how Solow model explains income growth.
Suppose the short run production function can be represented by Q=60000L0^2_1000b^3. Then determine
The level of labor employment that maximizes the level of out put
5. Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is P = 90 - 2Q. What will be the price, quantity, and profit for this firm?
If we can produce more of one product without decreasing the production of the other this means that:
If the store currently charges a price of $50, then increases that price to $60, what happens to total revenue from shoe sales (calculate P * Q before and after the price change)? Repeat the exercise for initial prices being decreased to $40 and $20, respectively.
1. Omer and Hanna are in an argument where Omer says that in a two sectoral economy the income of one sector is equal to the expenditures of the other sector, where else Hanna believes the otherwise. Using the two-sectoral diagram justify who in your opinion is right and why. (5 marks)
4. A perfectly competitive firm has total revenue and
total cost curves given by:
TR = 100Q TC = 5,000 + 2Q +
0.2 Q2
a. Find the profit-maximizing output for
this firm.
b. What profit does the firm make?
#333702 on Dec 2022