Suppose that investment demand increases by $700 billion in a closed and private economy (no government or foreign trade). Assume further that households have a marginal propensity to consume of 90 percent.

(a) Compute four rounds of multiplier effects.

Instructions: Enter your responses rounded to the nearest one decimal place.

(b) What will be the final cumulative impact on spending?

Instructions: Enter your response rounded to the nearest whole number.

$ billion

(a) The S&P/ASX200 price index opened the year at 5,777 and closed at 6,120 by the end of the year. The equivalent accumulation index went from 56,240 to 64,425. What is the annual rate of return on each of these indices? Explain the difference.

(b) Using the approach covered in your textbook calculate the geometric average annual rate of return over five years given the following annual rates, year 1 = 5.10%, year 2 = 4.95%, year 3 = 4.83%, year 4 = 4.75% and year 5 = 4.70% . What is the arithmetic average? Explain the difference.

Please no hand writing

1. Referring to an example, discuss what is a closed economy and an opened economy?

2. What do factor markets mean to you? If you have participated in these markets, which one ?

If not, which do you expect will be most important to you during your economically active life?

A rigid and closed steel tank with a volume of 86 dm ³   contains a mixture of saturated vapor and liquid at a quality and pressure of 0.9 and 20 bar respectively. Heat is removed from the system until it reaches 147 ° C.

• What is the volume of the saturated liquid phase at the end state?

A closed container with a volume of 2 m3 contains 4 kg of saturated liquid and saturated steam mixture water at 200 kPa pressure. Heat is given from the ambient temperature of 160⁰C until the water in the container is completely saturated. Note: T (K) = 273 + ºC
a) Find the entropy change of the system.
b) Find the heat transfer to the container.
c) Find the total entropy change.

2Q

Consider a closed economy. Let the demand curve be P = 80 - Q and the supply

curve be P = 20 + 2Q .

a) Calculate the equilibrium price and equilibrium quantity.

b) Suppose the government sets a price ceiling of $55, what is the amount of excess demand or excess supply? (Write down excess demand or excess supply).

c) Suppose the government sets a production quota of 16 units, calculate the equilibrium price and equilibrium quantity.

2. Consider a closed economy. Let the demand curve be P = 80 - Q and the supply

curve be P = 20 + 2Q .

a) Suppose the government imposes an unit tax of $3/unit, calculate Q’, Pc, Ps and the tax

revenue

i) assuming the tax is imposed on the consumers

ii) assuming the tax is imposed on the producers.

A country is closed. It has no government sector, and its aggregate price levels and interest rates are fixed. Furthermore, the marginal propensity to consume is constant and the country's consumption function is as follows: C = 200 + 0.75YD, where YD is disposable income and C is consumption. Assume that planned investment equals 75.

1. If this country's income increased by $10,000, consumption would increase by:

2. Write the AE equation: AE = ____ + ____ YD

3. When real GDP equals $900 unplanned inventory investment is:

4. What is the income–expenditure equilibrium for this country?

5. Holding everything else constant, what is the change to the income-expenditure equilibrium if aggregate wealth decreases by $100?

6. Holding everything else constant, what is the change to the income-expenditure equilibrium if taxes increase by 100? (hint: think about how the change in taxes reduces consumption).

4. Imagine a gene promoter is located in “closed” chromatin – meaning the gene can’t be expressed – and you wish to turn on gene expression. Describe 3 changes you can make to the DNA (or proteins that interact with DNA) to turn on gene expression. (There may be more than 3 correct answers but you only need to give three.)

5. Imagine the opposite scenario to #4: a gene is currently actively expressed and you wish to turn OFF gene expression. What changes can you make to turn off this gene?

Scenario: In a closed economy without a government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.

Refer to the scenario above. If the population of the economy is 200, the per capita national income is ________.

Group of answer choices

$35

$17

$50

$10

A hypothesis states that religious teachings, family ties, and/or social norms are the causes of economic prosperity. According to this hypothesis, ________.

geography is a fundamental cause of prosperity

culture is a proximate cause of prosperity

institutions are a fundamental cause of prosperity

culture is a fundamental cause of prosperity

Differences in the stock of physical capital between nations are an example of a(n) ________.

proximate cause of prosperity

implicit cause of prosperity

explicit cause of prosperity

fundamental cause of prosperity

Differences in the stock of human capital between nations are an example of a(n) ________.

proximate cause of prosperity

fundamental cause of prosperity

explicit cause of prosperity

implicit cause of prosperity