Get college assignment help at uniessay writers Suppose the consumption function is C = $500 billion 0.75Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with a$70 billion increase in government purchases?
What is “the wheel” in Macroeconomics?
George has an entertainment budget of $120 per month and he spends it either on opera tickets at $10 each or on theater tickets at $6 each. 1) Say theater tickets prices fall, first to $4 each, then $3 each, then $2, ceteris paribus. Graph the four budget , with the theater tickets on the horizontal axis 2)Suppose his demand curve for theater tickets is characterized by Q=60-10P, where P is the ticket price. Show graphically; a) his demand curve for theather tickets b) the specific point chosen on the budget constraint(s) corresponding to each price combination.
1.the market for painting a house in a centerville is 10,000. the total cover-up house-painting company has a fixed costs of 40,000 for ladders, brushes and so on, and the company’s variable costs follow this pattern output:2 3 4 5 6 7 8 9 10 variable cost( in thousands of $) 26 32 36 42 50 60 72 86 102 calculate the companys total costs, and graph the revenue curve and the total cost curve. do the curves have the shape you expect. over what range of production is the company making profits. 2. calculate and graph the marginal cost, the average cost and the average variable cost for the total cover-up and house painting company. given the market price, at what level of output will the firm maximize profits? what profit or loss is it making at what levels? AND WHAT price will no longer make a profit? assume that its fixed costs are sunk costs; there is no market for used ladders, brushes etc. at what price will the company shut down??
1. how do people make choices about the amount of time to work, given their personal tastes and real wages in the market. 2. how will the income effect of a fall in wages affect hours worked? how will the substitution effect of a fall in wages affect hours worked? 7. suppose an increase in education opportunities increases the supply of college educated workers and reduced the supply of workers without the college educations. using supply and demand graphs, illustrate how this change would affect the gap between wages and workers with and those without the college educations.
Congress is considering a tax credit program for those who purchase energy-efficient appliances. Proponents of the program have said that $400 million will be given directly to taxpayers and argue that this will have an economic effect that is greater than the original $400 million spent because of the multiplier effect. Many voters and taxpayers are not familiar with the concept of a multiplier in this sense. Your think tank has decided to produce a short report that will help voters better understand the proponents’ claims, and Gabe has asked you to write this report. Be sure to include the following in your report: * Give a basic explanation of how the multiplier concept is computed, including MPC. * Assume that the average American’s marginal propensity to consume (MPC) is 2/5, and American producers’ MPC is also 2/5. * Calculate the following, explaining how you arrived at each result: o The amount consumers will spend on new consumption o The amount of new spending from producers o The multiplier in this case o The total increase in spending from the primary spending of $400 million * Explain the multiplier concept as it applies in this case. * What are the qualifications and limitations of the m
You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. The energy efficient model sells for $500 and will save you $25 at the end of each of the next five years in electricity costs. The standard model has features similar to the energy efficient model but provides no future saving in electricity costs. It is priced at only $400. Assuming your opportunity cost of funds is 5 percent, which refrigerator should you purchase?
A firm’s marginal revenue product (MRP) curve should slope up from left to right. In other words, the MRP curve should have a positive slope. True or false, and why?
Suppose the personal computer industry is perfectly competitive and currently in long-run equilibrium. This year, all the firms in the industry are purchased by a corporate raider, who then operates the industry as a monopoly and seeks to maximize profits from the sale of computers. Which of the following is a likely consequence of the monopolization of the industry?
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Should oil drilling and use of strategic petroleum reserve be allowed to reduce oil shortage and U.S. dependence on foreign oil? What are the other alternatives/substitutes?
If variable cost is $12million, fixed cost is $14 million, and prospective sales are $13 Million, in the short run, the firm will______ and in the long run, the firm will? a.operate;go out of business b.shut down; stay in business c.shut down; go out of business d.operate; stay in business
Need an Excel project about buying a house. Directions are attatched.
2. The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet monthly demand for electricity in these counties, which is represented by the inverse demand function, P = 1000 – 5 Q, the utility company has set up two electric generating facilities: Q 1 is produced at facility 1 and Q 2 is produced at facility 2 (so Q = Q 1 Q 2
IF QD=500-P AND QS=50 P HOW I CAN CALCULATE EQUILIBRIUM PRICE AND QUANTITY
Suppose that the U.S. noninstituional adult population is 230 million and the labor force participation rate is 67 percent. a. What would be the size of the U.S. labor force? b. If 85 million adults are not working, what is the unemployment rate?
A firm’s marginal revenue is $133 and it marginal cost is $90. What amount of profit does the firm fail to pick up by refusing to increase output by one unit?
a.Which scale of production is most efficient when q =65? b. which scale of production is most efficient when q =75? c. Trace out the long-run average cost curve on the diagram.
the standardized deficit as a percentage of GDP is 1 percent in Year1. This deficit becomes a surplus of 1 percent of GDP in Year 2. It can be concluded from Year1 to Year 2 that
demand function, P = 24 – 0.5Q and the average cost function, AC = Q2
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