Q.4  The following relationships hold in economy of Matata Island:

? = 320 + 0.4(? − ?)

? = 150

? = 275

? = 200

a) Explain the concepts of marginal propensity to consume (MPC) and marginal propensity to save (MPS).

b) What is the MPC for this economy?

c) Explain the concepts of the autonomous spending and tax multipliers.

d) What is the autonomous spending multiplier for this economy?

e) What is the equilibrium level of income for this economy?

It is said that some goods such as education (with positive externalities), if left to private decisions, are not produced enough from the society’s point of view. Comment and support your answer graphically. How could the socially acceptable quantity be achieved? Please answer it by using the concepts from Microeconomics.

What is surplus value? What is its source? How is the process of exploitation connected to profit? How does Marx’s theory of exploitation link the wealth of the wealthy to the relative poverty of workers?

According to Marx’s theory it is not just marginalized workers in sweatshops who are exploited. Who is exploited in a capitalist economy?

What is “labor power?” How is it distinguished from "labor?"

a. What do empirical findings suggest regarding the short run and medium run effects of technological change on employment/unemployment?

b. Explain the two factors that determine spending on Research and Development, as discussed in your textbook?

The IS-LM-PC model connects the goods market, the financial market and the labor market.

a. Present a graph (hand-drawn graphs must be scanned and uploaded in pdfformat) of the model and explain the graph in words (e.g. slopes of the curves, what they depict, how are the three markets connected, etc.).

b. Using the IS-LM-PC model graph show the effect of an increase in the price of oil on equilibrium output, price and interest rate both in the short run and the long run. Also explain in words.

describe why you are in need of an emergency grant in as much detail as possible

Suppose that the production function is given by Y=K^(1/2)L^(1/2)

a. Derive the steady state levels of capital per worker and output per worker in terms of the saving rate, s, and the depreciation rate, δ.

b. Suppose δ = 0.05 and s = 0.2. Find out the steady state output per worker.

c. Suppose δ = 0.05 but s increases to 0.5. Find out the steady state output per worker and compare your result with your answer in part b. Explain the intuition behind your results.

Identify Future directions and various perspective on Digital Twin Developments and applications for the crisis caused by Novel Coronavirus (COVID-19).

How is exploitation reflected in the historic struggles between capital and labor? What are some specific focal points of this struggle?

a. In which decade did the original Phillips Curve break down and explain why? How was the expectations augmented Phillips curve different from the original Phillips curve?

b. What was Milton Friedman and Edmund Phelp’s opinion on the trade offbetween unemployment and inflation as shown by the P-curve? Comment briefly.

Write a paper on the effects of coronavirus in the US on small businesses (white and black), large businesses (white and black). Which businesses (small and large) performed worse than the other. In terms of welfare and distribution of income and employment, who gets hurts more: Blacks or whites, Male or female, also Who will get more government assistant?

How did the fires in the amazon impact the production of bananas in brazil? What are the implications of this on the market for bananas in Brazil?