The convenience of shopping on the Web combined with high-speed broadband access services is spurring online spending. The projected online spending per buyer (in dollars) from 2002 (x = 0) through 2008 (x = 6) is given in the following table.

(a) Find an equation of the least-squares line for these data. (Round all coefficients to one decimal places.)
y =  

  

(b) Use the result of part (a) to estimate the rate of change of spending per buyer between 2002 and 2008. (Round your answer to one decimal place.)
$ ____ per buyer per year

A natural disaster strikes Wakanda and destroys a considerable amount of capital stock. Government officials believe this destruction will reduce national GDP and they should try to prevent this by increasing government spending. They hire you to make a recommendation.

a)With the aid of labour and output market diagrams, explain what would be the effects of the natural disaster on the economy. Is it reasonable that the government increases spending?

b)Illustrate, with the aid of diagrams again, what would be the effects of a temporary increase in government spending after the disaster strikes.

c)Based on your answer above, is there a more sensible justification for higher government spending?

d)Finally, what should the central bank do in response to the disaster if its goal is to stabilize the price level?

The convenience of shopping on the Web combined with high-speed broadband access services is spurring online spending. The projected online spending per buyer (in dollars) from 2002 (x = 0) through 2008 (x = 6) is given in the following table.

(a) Find an equation of the least-squares line for these data. (Round all coefficients to one decimal places.)
y =

(b) Use the result of part (a) to estimate the rate of change of spending per buyer between 2002 and 2008. (Round your answer to one decimal place.)
$  per buyer per year

1. Consider an economy with no international trade, no government spending and no taxes, whose consumption function and investment function are given by the following equations: C = 100,000 + .92Y I = 40,000

a. What is the equilibrium level of aggregate output for this economy?

b. What is the saving function for this economy?

c. Check the solution, as we did in class, by showing that at the equilibrium level of Y total spending exactly matches the level of output. At the equilibrium level of Y, what is the level of saving in the economy?

d. Sketch the solution in a graph. [BTW: PowerPoint has a very useful drawing program that will help you get good-looking diagrams; it is a good thing to know how to use. Go here for a basic tutorial: https://www.youtube.com/watch?v=M5X_zvh2j9Y. After constructing the diagram in PowerPoint you can cut & paste it into a Microsoft Word document.]

e. What is the Keynesian multiplier for this economy (see textbook, chapter 3)? If I increases by $2,000, what will be the new equilibrium level of Y?

2. Now let’s add Government Spending into the model. Government spending is a component of Aggregate Demand, just as Consumption Spending and Investment Spending. For now, let’s not worry about taxes; we can assume the government borrows to pay for all of its spending.

Consider a closed economy with no taxes, whose consumption function, investment level & government spending level are given by the following equations:

C = 5,000 + .80Y I = 9,000 G = 2000 where G represents government spending. The equilibrium condition is, as always, that the value of the economy’s output (Y) must be matched by aggregate demand, but now aggregate demand contains a third element, G. So the equilibrium condition from which we’ll start is now: Y = C + I + G.

a. What is the equilibrium level of aggregate output for this economy?

b. What is the saving function for this economy?

c. Check the solution, as we did in class, by showing that at the equilibrium level of Y total spending exactly matches the level of output. At the equilibrium level of Y, what is the level of saving in the economy?

d. Sketch the solution in a graph.

e. What is the Keynesian multiplier for this economy? If G decreases by $100, what will be the new equilibrium level of Y?

which writer—Malthus or Marx—would sound most modern and relevant to twenty-first-century demographers? Defend your answer.

Luna Health Corp just announced the dividend for next year will be $3.45. The dividend is expected to grow at 3.8% for the sustainable future and the expected return is 11.15%. The value of Luna is closest to:

Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a

$46.94.

b

$48.72.

c

$30.94.

1. Ali wishes to replace payments of $1050 due today and $1250 due in 22 months by a single equivalent payment 18 months from now. If money is worth 3.8% compounded monthly, what should that payment be?

Interim calculations to 3 decimals, final answer rounded to the nearest cent.  

(Total: 9 marks)

The power through a cylindrical resistor is 1.5 W. If the radius of this resistor is 5.2 mm and its length is 2.8 cm, calculate the magnitude of the current density. The resistivity of this resistor is 3.8 x10^-5 Ω. m.

Select one:

a. 1.3x10⁵ A/m²

b. 3.3x10⁵ A/m²

c. 4.3x10⁵ A/m²

d. 2.3x10⁵ A/m²