Germany and Greece follow the euro, so the exchange rate is fixed. but the productivity of Germany is higher, productivity growth can be modelled as falling price levels because technology improvements will lead to cheaper production cost. Why will this imbalance in productivity cause issues with the fixed exchange rate and the stability of the euro?

Hello, I have three questions.

1. What happens to the amount of air resistance on your car as you drive faster?

2. When will an object falling through air reach terminal velocity?

3. What is the net force and acceleration of an object that has reached terminal velocity?

If the marginal propensity to consume is 0.75, how much is the spending multiplier? If the marginal propensity to consume drops to 0.5, how much is the new spending multiplier?

1. What is the U.S. spending on steel as a percentage of GDP? Is the volatility of the spending share large? Get data from the last 30 years and plot it in Excel.

1. Which of the following would be the best fiscal policy to put the economy on its long run equilibrium?

Increase of 2 billion in government spending

Increase of 10 Billion in government spending

Increase of 4 billion in tax breaks

Increase of 5 billion in government spending

The government decides to increase government spending in an attempt to help move the economy into its long run equilibrium: which of the following should be a concern?

Crowding out

Liquidity trap

Deflation, leading to a recession

Stagflation

5. Assuming the price level does not change, explain what happens if the leakages are less than injections and why?

13. Explain why the Classical Macro theory is a full-employment model and how it can incorporate deviations of the economic activity from the potential as well as explaining economic growth.

15. Evaluate critically: A change in any autonomous spending such as government and likely investment spending will not change the total spending, since thee expenditure changes will be counterbalanced in other components of the spending.

17. Explain the ineffectiveness of discretionary policy (monetary and fiscal policies including changes in taxes) in view of the classical theory.

3.3. Assume S = –N$200m + 0.08Yd; M= 0.1Y; I = N$300m; G = N$150m; X = N$140m and t = 0.21Y.
(a) Calculate the total-spending function and equilibrium income. Illustrate this on a graph. [5 marks]
(b) Indicate on the graph the effect of an N$100 million increase in investment spending and comment on the magnitude of change in the equilibrium income relative to the change in investment spending. Calculate the new equilibrium income. [5 marks]
(c) Assume the marginal tax changes to 0.25Y. How will this change influence the total spending curve? Illustrate this on your graph. [5 marks

Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 7,000 skis and 8,000 pounds of carbon fiber will be in inventory on June 30 of the current year and that 170,000 skis will be sold during the next (third) quarter. A set of two skis sells for $500. Management wants to end the third quarter with 5,500 skis and 6,000 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $19 per pound. Each ski requires 0.5 hours of direct labor at $24 per hour. Variable overhead is applied at the rate of $14 per direct labor hour. The company budgets fixed overhead of $1,802,000 for the quarter.

1. Prepare the third-quarter production budget for skis.

2. Prepare the third-quarter direct materials (carbon fiber) budget; include the dollar cost of purchases.

3. Prepare the direct labor budget for the third quarter.

4. Prepare the factory overhead budget for the third quarter.

Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 6,200 skis and 7,200 pounds of carbon fiber will be in inventory on June 30 of the current year and that 162,000 skis will be sold during the next (third) quarter. A set of two skis sells for $420. Management wants to end the third quarter with 4,700 skis and 5,200 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $11 per pound. Each ski requires 0.5 hours of direct labor at $16 per hour. Variable overhead is applied at the rate of $6 per direct labor hour. The company budgets fixed overhead of $1,794,000 for the quarter.

A. Prepare the third-quarter production budget for skis.

B. Prepare the third-quarter direct materials (carbon fiber) budget; include the dollar cost of purchases.

C. Prepare the direct labor budget for the third quarter.

D. Prepare the factory overhead budget for the third quarter.