The annual (Initial) GDP of a Simple Open economy is 10,000 units with annual savings of 1500 units and a 20% Tax Rate and a 10% Transfer Payment rate. (a) Show and explain the changes on annual GDP, Consumption, Savings and Net Taxes to an increase in annual Government Spending from 1000 units to 1500 units? (b) What would be the change on the annual GDP, Consumption, Savings and Net Taxes to a decrease in annual Government Spending from 1000 units to 500 units and initial annual savings changed from 1500 units to 1000 units? Show and explain all calculations?

• Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? Imagine for a moment that you have two roommates, who each have opposing viewpoints on nearly everything, including politics and economics. Taylor is adamant that the best way to manage the economy is through tax changes, while Morgan insists that it’s better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which roommate do you agree with, and why? .

A = C + I + G + X - M C = 500 + 0.5Y – 200i I = 14000 + 0.2Y– 200i G = 1200 - 0.1Y X = 2000 M= 1000 -.05Y Y = A L = 0.33Y – 25i (M/P) = 3000 L = (M/P)

e. If the government increases spending G by 100:

i. What would the new IS Curve look like?

ii. What would the new LM curve look like?

iii. What would the new equilibrium income Y and Interest I be?

iv. At this new equilibrium, what would the level of Investment spending be?

Question 3: Suppose federal government decreases taxes by (ΔT= 10 million) and increases government spending by (ΔG = 20 million), as a result output is changed by (ΔY).

a. (10 points) Assuming that the Federal reserve changes money supply such that the interest rate stays constant and marginal propensity to consume is MPC= 0.6. What is the change in output

(ΔY)? What is ΔY ? What is ΔY? Show your work. ΔT ΔG

b. (10 points) If the fed does not change money supply, do you expect the effect of the changes in tax and spending to be larger or smaller? Explain why?

TRUE OR FALSE
a. When potential real GDP is equal to actual real GDP, there is no unemployment.
b. A significant increase in wages will shift aggregate supply curve to the right in the short run.
c. When the government decided to reduce their spending, then the aggregate supply curve will decrease or shift to the left in the short run.
d. If the central Bank wants to expand aggregate demand, it can increase the money supply, which would increase the interest rate.
e. To find spending multiplier, we have to calculate one divided by marginal propensity to consume.

Explain why true and why false!

Question 1

(a) Use the IS-LM model to illustrate and explain the effects of a decrease in consumer spending on equilibrium GDP and interest rates.

(b) Use the IS-LM model to illustrate and explain how a government could use fiscal policy to offset the effects of the decrease in consumer spending from question 1) above.

(c) Use the IS-LM model to illustrate and explain the change of equilibrium GDP and interest rates resulting from a decrease in the money supply. ALSO, under the standard assumptions, explain the dynamic responses of GDP and interest rates as they move from the original equilibrium to their new equilibrium values.

• If we recreated the scene from Fast & Furious 7 and dropped a Challenger SRT® Hellcat Redeye Widebody from a C-130 aircraft at 5,280 ft, how much horsepower would it take to drive past it before it hits the ground if you’re 1 mile away?
• Rephrase the question: How much horsepower is needed to travel the distance of one mile, before the dropped vehicle hits the ground, from a mile up in the air, out of the back of a C-130 aircraft. The falling vehicle is falling STRAIGHT down, no forward travel The vehicle on the ground that has to pass the point of impact BEFORE impact, has to start from a dead stop.
• Use the following data to compute the required hp to caver the distance of 1 mile, from a dead stop, and pass the point of impact. Will have to calculate the time of fall, to find the time needed to start from a standing start to cover a mile just past the point of impact.

Data available:

• Air density @ sea level, 59 degrees, no wind = p = .002377 slugs/ft^3
• Coefficient of drag (flat plate, NASA) = C(d) = 1.28
• Weight = W = 4451 lbs
• Gravitation constant = g = 32.2 ft/sec^2
• Area = A = 197.5" long x 78.2" wide x (1 ft^2/ 144 in^2)
• Vehicle falls flat, wheels 1st, straight down, at constant acceleration with no aerodynamic drag until terminal velocity
• Horsepower needed to accelerate is AVERAGE - not peak
• 100% driveline efficiency

could you do all the challenges?

public class Main
{
public static void main(String[] args)
{
// declare an array so you can easily use them under
// one name

//ex1 array of test score 0-100
int[] testScores = new int[100];

//ex2 array of 200 gpa
double[] gpa = new double[200];

//ex3 50 element array of age
int[] age; //1 - declares age array
age = new int[50]; //2 - instantiates age array
age[0] = 10; //3 - put initial values in
age[1] = 15; // each element

// challange: initialize testScores with random
{
Random int=new Random();
int score;
for (int i = 0; i < 100 ; i++)
  
{testScores[i] = rand.nextInt(101);
System.out.println(testscores[i] + " "); }

// scores using a loop. Do not print (we'll later)
// challenge: using the OTHER LOOP print the elements of the array
int i=0;
while(i< 100)
{testScores[i] = rand.nextInt(101);
System.out.println(testscores[i] + " ");
i++;
}
// challange: look through your testScores array and count
// how many falling scores were there i.e. <68
int falling = 0;

// challenge: ask the user for a numberScore i.e. 77
// and count how many times a testScore is
// within 5 of numberScore

//challenge: put random gpa's into the gpa array.
// print the average GPA.

//challenge: on each element of the GPA array, print the
// GPA and the next GPA if they are equal


}
  
}

Just before class starts, you realize that you have mistakenly recycled the second page of your cost accounting homework assignment. Fortunately, you still have the first page of the printout from your spreadsheet (shown below) and you remember that you were able to determine the items on the recycled page from this information.

Required:

a. Find the cost of goods sold.

b. Find the direct materials used.

c. Find the purchases of direct materials. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)

d. Find the sales revenue. (Round your final answer to the nearest whole dollar.)