Honey land analysis its aggregate consumer spending and aggregate disposable income and finds the following data. All numbers in the table are dollars.

YD C

$0 $100

100 180

200 260

300 340

500 500

Assume Honey land is a closed economy with no government spending, no taxes, and no transfers, Furthermore, assume the aggregate price level and interest rate are fixed in Honey land. 1. What does autonomous consumer spending equal in this economy?

2. What is the value of the MPC for Honey land?

3. What is the slope of the consumption function?

4. Suppose future expected disposable income increases in Honey land. How will this affect autonomous consumer spending, The MPC, and the consumption function?

b) Due to severe negative demand shock, US real GDP plummeted from is potential level of $900 billion to $800 billion, so the economy is new in a recession. Suppose the government plans to use expansionary fiscal polices to get the economy out of the recession.

i. Suppose the government wants to cut taxes. Obtain the tax multiplier, and determaine how much of tax cut would be needed.

ii. Suppose the government wants to increase  government spending multiplier, and determine how much of an increase in government spending be needed.

iii. Suppose the government wants to cut taxes and increase government spending. If the size of a tax cut is $20 billion, how much of an increase in government spending would be needed?

Walmart has an interest in monitoring the average back-to-school spending for grade-school students year to year. Every year the back-to-school spending data is published by the National Retail Federation. The following table shows the average back-to-school spending of households randomly sampled in 2016 and 2017 along with the population standard deviations and sample sizes for each sample.
2016 2017
Sample mean $606.40 $655.27
Sample size 35 38
Population standard deviation $160 $173
a. State the correct null and alternative hypotheses.



b. Perform a hypothesis test using α = 0.10 to determine if the average household back-to-school spending in 2016 was different than it was in 2017.







c. Use Confidence Interval to test this hypotheses

Walmart has an interest in monitoring the average back-to-school spending for grade-school students year to year. Every year the back-to-school spending data is published by the National Retail Federation. The following table shows the average back-to-school spending of households randomly sampled in 2016 and 2017 along with the population standard deviations and sample sizes for each sample.
2016 2017
Sample mean $606.40 $655.27
Sample size 35 38
Population standard deviation $160 $173
a. State the correct null and alternative hypotheses.



b. Perform a hypothesis test using α = 0.10 to determine if the average household back-to-school spending in 2016 was different than it was in 2017.







c. Use Confidence Interval to test this hypotheses

Walmart has an interest in monitoring the average back-to-school spending for grade-school students year to year. Every year the back-to-school spending data is published by the National Retail Federation. The following table shows the average back-to-school spending of households randomly sampled in 2016 and 2017 along with the population standard deviations and sample sizes for each sample. 2016 2017 Sample mean $606.40 $655.27 Sample size 35 38 Population standard deviation $160 $173 a. State the correct null and alternative hypotheses. b. Perform a hypothesis test using α = 0.10 to determine if the average household back-to-school spending in 2016 was different than it was in 2017. c. Use Confidence Interval to test this hypotheses

Fiscal Policy Response:

Student must recommend the Federal Government use Expansionary Mode of Fiscal Policy to deal with the Recession. The student must recommend several specific items for the government to increase its spending in order to inject money into markets and get businesses spending money, as well as putting labor back to work to put money in their pockets to spend as well. Additionally, student must recommend the government LOWER PERSONAL AND BUSINESS INCOME TAXES. This will make both Consumer and Gross Private Domestic Investment Spending INCREASE. As three parts of total spending increase, AD shifts to the right, real GDP increases, which causes unemployment to decrease. If these work as stated, the economy will move into recovery in the business cycle.

Fiscal Policy Response: Student must recommend the Federal Government use Expansionary Mode of Fiscal Policy to deal with the Recession. The student must recommend several specific items for the government to increase its spending in order to inject money into markets and get businesses spending money, as well as putting labor back to work to put money in their pockets to spend as well. Additionally, student must recommend the government LOWER PERSONAL AND BUSINESS INCOME TAXES. This will make both Consumer and Gross Private Domestic Investment Spending INCREASE. As three parts of total spending increase, AD shifts to the right, real GDP increases, which causes unemployment to decrease. If these work as stated, the economy will move into recovery in the business cycle.

Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 124,000 units requiring 496,000 direct labor hours. (Practical capacity is 516,000 hours.) Annual budgeted overhead costs total $818,400, of which $585,280 is fixed overhead. A total of 119,400 units using 494,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,600, and actual fixed overhead costs were $555,050. Required: 1. Compute the fixed overhead spending and volume variances. Fixed Over

Overhead Variances, Four-Variance Analysis

Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 124,000 units requiring 496,000 direct labor hours. (Practical capacity is 516,000 hours.) Annual budgeted overhead costs total $818,400, of which $585,280 is fixed overhead. A total of 119,400 units using 494,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,600, and actual fixed overhead costs were $555,050.

Required:

1. Compute the fixed overhead spending and volume variances.

2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations

head Spending Variance $ Fixed Overhead Volume Variance $ 2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations Variable Overhead Spending Variance $ Variable Overhead Efficiency Variance $

What are search goods, experience goods and post-experience goods?

Should the government intervene to reduce the information asymmetry on search goods, experience goods and post-experience goods?

Please explain.

Classify the following goods and services as private goods, common resources, artificially scarce goods, or public goods.

• Health insurance is
• Radio spectrum is
• A video on Netflix is
• A mosquito control program in a city is
• Studying space in library is