Questions
For the table shown, answer the following questions: Actual aggregate expenditure or output (Y) (billions of...

  1. For the table shown, answer the following questions:

Actual aggregate expenditure or output (Y)
(billions of $)

Consumption (C)
(billions of $)

Planned investment
(billions of $)

Government spending (G)
(billions of $)

Net exports (NX)
(billions of $)

Unplanned investment (inventory change)
(billions of $)

Future output tendency

350

200

60

90

60

400

220

450

240

500

260

550

280

  1. What is the marginal propensity to consume for households in this economy?
  2. Based on the assumptions of our aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. What is this type of expenditure called?
  3. For each level of actual aggregate expenditure, calculate unplanned inventory investment.
  4. What is the equilibrium level of aggregate expenditure in this economy? How do you know?
  5. For each level of actual aggregate expenditure, label the future output tendency as “increase,” “decrease,” or “same” based on what you expect to happen to future output. What relationship does this categorization have to your answer in part d?

In: Economics

For the table shown, answer the following questions: Actual aggregate expenditure or output (Y) (billions of...

  1. For the table shown, answer the following questions:

Actual aggregate expenditure or output (Y)
(billions of $)

Consumption (C)
(billions of $)

Planned investment
(billions of $)

Government spending (G)
(billions of $)

Net exports (NX)
(billions of $)

Unplanned investment (inventory change)
(billions of $)

500

300

150

100

50

600

350

700

400

800

450

900

500

  1. For each level of actual aggregate expenditure, calculate unplanned inventory investment.
  2. What is the equilibrium level of aggregate expenditure in this economy? How do you know?
  3. Suppose that planned investment increases by $50 billion. What is the new equilibrium level of aggregate expenditure in this economy?
  4. What is the marginal propensity to consume in this economy?

What is the expenditure multiplier in this economy

In: Economics

a) Change the right-hand-side value of one of the constraints. Be sure that, the updated tableau...

a) Change the right-hand-side value of one of the constraints. Be sure that, the updated
tableau is infeasible, and you are applying Dual Simplex Method. (Find a change that will
make the new tableau infeasible.)
b) Change the objective function coefficient of one of the decision variables. Be sure that,
the updated tableau is non-optimal, and you are applying Simplex Method. (Find a
change that will make the new tableau non-optimal.)
c) Find the validity range for one of the constraint’s right-hand-side value.
d) Find the optimality range for one of the decision variable’s objective function coefficient.
e) Add a new ≥ constraint into the model. Be sure that, the new constraint is not satisfied by
the current optimal solution and you are applying Dual Simplex Method. (Add a ≥
constraint that will make the new tableau infeasible.)
f) Add a new decision variable into the model. Be sure that, the new tableau is non-optimal,
and you are applying Simplex Method. (Add a new decision variable that will make the
new tableau non-optimal.)

In: Economics

Does political evolution bring benefits to society? Why or why not?

Does political evolution bring benefits to society? Why or why not?

In: Economics

Based on Metabical Forecasting Demand Harvard Case: 1) An Introduction describing the market the firm is...

Based on Metabical Forecasting Demand Harvard Case:

1) An Introduction describing the market the firm is competing in.
2) Identifying the Challenge(s) facing the firm
3) Strategic Alternative(s) available to the firm
4) Decision: Recommended Action(s)
5) Lessons learned from the case

In: Economics

Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that...

Suppose New York wants to build a new facility to replace Madison Square Garden. Assume that the cost of building a new arena in midtown Manhattan is $2.5 billion and that all the costs occur right away. Also assume that New York will receive annual benefits of $110 million for the next 25 years, after which the new arena becomes worthless. Does it make financial sense to build the new facility if interest rates are 6 percent? At what interest rate will we be indifferent between accepting and rejecting this project? Make sure to show your work.

In: Economics

Describe the global marketers’ considerations and adjustments of research methodologies when conducting research.

Describe the global marketers’ considerations and adjustments of research methodologies when conducting research.

In: Economics

The franchisor from which Eric decides to take a franchise is called Fishy Fishy Fries, Inc.....

The franchisor from which Eric decides to take a franchise is called Fishy Fishy Fries, Inc.. Fishy Fishy Fries imposes on its franchisees’ certain standards of operation, personnel training methods and procedures for the dismissal of “unsatisfactory” employees. Discuss the issues raised by the desire of a franchisor to exercise a degree of control over its franchisees.

In: Economics

please fully explain the purpose of the Federal Trade Commission (FTC). Also, explain some of the...

please fully explain the purpose of the Federal Trade Commission (FTC). Also, explain some of the methods used to enforce the commission's authority. Also, give five examples when the FTC will take action

In: Economics

Essay question: Consumer Behavior is influenced by different factors. Explain giving examples of these factors in...

Essay question:

Consumer Behavior is influenced by different factors. Explain giving examples of these factors in short notes, showing the importance of studying consumer behavior.

In: Economics

For the table shown, answer the following questions: Actual aggregate expenditure or output (Y) (billions of...

  1. For the table shown, answer the following questions:

Actual aggregate expenditure or output (Y)
(billions of $)

Consumption (C)
(billions of $)

Planned investment
(billions of $)

Government spending (G)
(billions of $)

Net exports (NX)
(billions of $)

Unplanned investment (inventory change)
(billions of $)

Future output tendency

350

200

60

90

60

400

220

450

240

500

260

550

280

  1. What is the marginal propensity to consume for households in this economy?
  2. Based on the assumptions of our aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. What is this type of expenditure called?
  3. For each level of actual aggregate expenditure, calculate unplanned inventory investment.
  4. What is the equilibrium level of aggregate expenditure in this economy? How do you know?
  5. For each level of actual aggregate expenditure, label the future output tendency as “increase,” “decrease,” or “same” based on what you expect to happen to future output. What relationship does this categorization have to your answer in part d?

In: Economics

Assume that the flour market is perfectly competitive and the price of flour is determined by...

Assume that the flour market is perfectly competitive and the price of flour is determined by the market at $9 per kg. Tony owns a mill and sells 10 kg of flour per day. At this output 10 kg, Tony has an average variable cost of $6, an average fixed cost of $2 and a marginal cost of $8 per day. Calculate Tony’s profit or loss at the output 10 kg of flour per day. What should Tony do if he wishes to earn more profit? Explain.

(b) Suppose that the tofu market is perfectly competitive and Omega is one of the many tofu producers in the market.

(i) Initially the tofu market is in a long-run equilibrium. Draw a diagram for the tofu market and a diagram for Omega to explain the long run equilibrium situation.
(ii) Omega discovers a method to significantly reduce both the fixed costs and the variable costs of tofu production. How will this discovery affect Omega and the tofu market in the short run? Explain with suitable diagrams for the tofu market and Omega.
(iii) Describe what will happen at the tofu market in the long run.

In: Economics

For the figure shown, answer the following questions: What is the expenditure multiplier in this economy?...

  1. For the figure shown, answer the following questions:
  1. What is the expenditure multiplier in this economy?
  2. What is the marginal propensity to consume in this economy?

In: Economics

Question 1 Chepa’s utility function is given by U(x,y) = lnx + 4lny. Assume that Chepa...

Question 1 Chepa’s utility function is given by U(x,y) = lnx + 4lny. Assume that Chepa has endowments (10,10) and that Py = 10 throughout the problem.

  1. (Note: this part of the question is intended to reduce your workload. If you prefer not to work with a general demand function but calculate the demand separately for each of the cases, you can do this part after part (f).) Given Py = 10, solve for the optimal bundle for Chepa as a function of Px and money income M.
  2. Express Chepa’s endowment income as a function of Px. Using this expression and your answer to (a), find the range of values of Px such that Chepa will be a net seller of good x.

In: Economics

How to make a supply function?

How to make a supply function?

In: Economics