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Category Economics

Minot ECON 4401 - Suppose that governments around

Suppose that governments around the world begin to raise taxes policy in order to Stimulate economic activity in their countries. [] Use the long-run model of a small open Economy to illustrate graphically the impact of this fiscal policy by foreigners on, (a) the Foreign economies loanable funds market including the real interest rates, and on, (b) the U. []S. [] exchange rate and the trade balance. [] Assume that the US economy starts from a position of trade balance, i. []e. [], exports equal Imports. [].....

Category Economics

Suppose Nucor Steel sells $2,000 worth

Suppose Nucor Steel sells $2,000 worth of steel to Ford, other producers sell $5,000 worth of other inputs to Ford; Ford then uses the steel and other inputs to make a Taurus which it sells to the car dealership for $15,000. [] The car dealership sells the car to a school teacher for $18,000. [] What is the total contribution to GDP made by this entire series of.....

Category Economics

In economy L, households and firms

In economy L, households and firms want to keep a currency to deposit ratio, (=C ?D), of 0. []20, while banks are required to keep a reserves to deposit ratio, (=R ?D), of 0. []10. [] Banks in this economy keep no excess reserves. [] The price level stands at 1, or 100 percent, and the monetary base is $40 billion. [] a) Calculate the value of the money multiplier, mm. [] b) What is the money supply? c) How much of the money supply will be held in the form of currency? In the form of bank deposits? d) If the Reserve bank wants to increase the money supply by $20 billion, what is the.....

Category Economics

W. Illinois ECON 386 - Assume that there are two firms

(From chapter 5) Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. [] The government sets an aggregate abatement standard (_AST_) of 20 units. [] The polluters' cost functions are as follows, where the dollar values are in thousands: (2 x 4 = 8 points) Polluter 1: _TAC1_ = 10 + 0. []75(_A1_)2, Polluter 2: _TAC2_ = 5 + 0. []5(_A2_)2, _MAC1_ = 1. []5_A1_, _MAC2_ = _A2_.....

Category Economics

The following equations describe an economy

Question 1. [] The following equations describe an economy Z. [] Figures (except the parameters) are in millions of dollars. [] C = 350+0. []85YD YD = Y-T T= 100+0. []20Y I = 280 G = 370 X = 250 M = 130+0. []15Y where:C = consumption expenditure; YD = disposable income; Y = real GDP; T = net taxes; I = investment; G = government expenditure; X = exports; M = imports * Derive the aggregate expenditure function ( AE ) for this economy * Calculate the equilibrium expenditure * Calculate the expenditure multiplier .....

Category Economics

A firmwill have monopoly power if

1. [] A firmwill have monopoly power if A. [] it is the sole producerof its product B. [] it has a market shareof at least 25%. [] C. [] it can set its price D. [] it is making highprofits. [] 2. [] All of the following are examples of unfaircompetition, except A.....

Category Economics

UC Davis ECON 111A - American Economic History

QUESTION NUMNER 1 & 3, need Homework 1: Econ 111a American Economic History Due Wednesday October 26, 2016 Question 1: The American colonies regularly faced a trade deficit in the eighteenth century, but it faced a small balance of payments deficit. [] Use the following table on the Balance of Payments for the 13 Colonies from 1768–1772 to discuss why this was the case. []  Question 2: Greater Productivity is one of the key reasons that income per capita grows over time. [] Some argue that technological change is the main cause of productivity growth. [] Discuss whether the productivity growth of shipping in the American colonies supports this view.....

Category Economics

Explain the meaning of elasticity

1. [] Explain the meaning of elasticity? What are the different types of elasticities? Of what use are these elasticities to business ( in other words to Total Revenue)? (3 marks) 2. [] A firm supplied 3000pens at the rate of AED 10 per pen. [] Next month, due to a rise in the price to AED 22 per pen, the supply of the firm increased to 5000 pens. [] Using themid point method find the price elasticity of supply of pens. [] 3. [] The government of Dubai had been.....

Category Economics

Suppose that asupermarket reduces the price

Example 1 Suppose that asupermarket reduces the price of a packaged cake from £1. []00 to 80p then it isassumed that sales per week would rise from 500 to 700. [] Question: 1. [] Calculate the price Elasticity of Demand 2. [] What does the answer to question I tell you? Is the productpackaged cake elastic, inelastic or unitary elasticity? 3. [] Explain your answer Example 2 Now suppose that thesupermarket increases the price of.....

Category Economics

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