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ernment purchases, G, are 1200. Desired consumption
and desired investment are
Cd == 3600 - 2000r + 0.10Y, and
I
d == 1200 - 4000r,
where Y is output and r is the real interest rate.
a. Find an equation relating desired national saving,
sd
, to r and Y.
b. Using both versions of the goods market equilibrium
condition, Eqs. ( 4.7) and ( 4.8), find the real interest
rate that clears the goods market. Assume that
output equals full-employment output.
c. Government purchases rise to 1440. How does
this increase change the equation describing
desired national saving? Show the change graph-
ically. What happens to the market-clearing real
interest rate?
government purchases are 2000. Desired consumption
and desired investment are as follows:
Real Interest
Rate (0/o)
2
3
4
5
6
Desired
Consumption
6100
6000
5900
5800
5700
Desired
Investment
1500
1400
1300
1200
1100
a. Why do desired consumption and desired invest-
ment fall as the real interest rate rises?
b. Find desired national saving for each value of the
real interest rate.
c. If the goods market is in equilibrium, what are the
values of the real interest rate, desired national
saving, and desired investment? Show that both
forms of the goods market equilibrium condition,
Eqs. (4.7) and (4.8), are satisfied at the equilibrium.
Assume that output is fixed at its full-employment
level.
d. Repeat Part (c) for the case in which government
purchases fall to 1600. Assume that the amount people desire to consume at each real interest rate
is unchanged
trying to determine how many chain-link fabricating
machines to buy for its factory. If we define a chain-
link fence of some specified length to be equal to one
unit of output, the price of a new fabricating machine
is 60 units of output, and the price of a one-year-old
machine is 51 units of output. These relative prices are
expected to be the same in the future. The expected
future marginal product of fabricating machines, mea-
sured in units of output, is 165 - 2K, where K is the
number of machines in use. There are no taxes of any
sort. The real interest rate is 10
Discuss the relationship between the three short-run total cost curves and give an example.
• Number of shares in issue: 10 000 000
• share price: R1.00
• capital structure: Assets = R50 000 000; Liabilities= R40 000 000; Equity =
R10 000 000
• EBIT (operating profit) = R5 000 000
• t interest expense = R4 000 000
• Tax rate: 28%
• beta: 1.9
• Risk free rate: 3%
• Market risk premium : 5%
Company needs R10 000 000 to implement turnaround plan while they wish to lower its debt by R20 000 000 to bring about better profitability due to reduced interest payments. The company would also immediately use the R20 000 000 to retire debt to that amount while the R10 000 000 for the turn-around plan would be kept as cash initially.
a.) Determine the amount of funding that the company requires and the amount of rights the company would have to issue if it is assumed that transaction and related costs amount to 10% of the value of each right issued, while it is expected that the issue will be fully taken up if the price of a right is set to 20c.
The Efficient Software Store had been selling a spreadsheet program at a rate of 100 per month and a graphics program at the rate of 50 per month. In September 2012, Efficient's supplier lowered the price for the spreadsheet program, and Efficient passed on the savings to customers by lowering its retail price from $400 to $350.The store manager then noticed that not only had sales of the spreadsheet program risen to 120, but also the sales of the graphics program increased to 56 per month. Explain what has happened. Use both arc price elasticity and arc cross-elasticity measures in your answer.
in short run equation TC=200+55q find fixed cost
1) What is ASI dataset? Why one should use this dataset?
2) Choose any five principal characteristics of ASI data. Define them; Explain how these chosen principal characteristics change after the liberalization of Indian economy at all India level for next 15 years of time span.
3)
Choose any 5 industry groups(two digit, NIC 2008), then analyze and
compare the principal characteristics of chosen industries at all India level for any two time periods. Explain your results?
4) Analyze the key industry characteristics of rural India for any two time
periods? Also, analyze the same for Urban India? Then, compare the
urban and rural statistics; Explain your results?
5) Find out the share of factories in major states in ASI 2010-11 and in ASI 2016-17. Compare and analyze the result?
Using an AD-AS framework and an expectations-augmented Phillips curve,
shows the effects of an unexpected increase in money supply.(9 marks)
Find out the share of factories in major states in ASI 2010-11 and in ASI 2016-17. Compare and analyze the result?
#340153 on Dec 2023