In an economy with marginal propensity to save (MPS) of .4, what effect will an increase of $100 in government spending have on equilibrium and what effect a tax cut of $100 will have on equilibrium.

Given: initial equilibrium = $50,000 and the MPC = .8

a. Calculate the spending multiplier.

b. If planned investment decreases by $1500, calculate the CHANGE in equilibrium.

c. Calculate the new total equilibrium.

You read in the newspaper that economists predict a sharp rise in consumer spending. The current level of unemployment is at a historical low of 3 percent. What advice would you give the government on the policies it should adopt?

The predicted sharp rise in consumer spending is attributed by economists to lower predicted savings. in the last few weeks,interest rates have fallen and consumer confidence to borrow has risen. using a consumption function diagram illustrate the expected effect.

Which of the following factors helps to explain the sustained increases in health care spending in the United States?

a) Increasing cost of malpractice insurance

b) Slow growth in labor productivity in healthcare compared with the economy as a whole

c) Unnecessary, inefficient paperwork

A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. The Microsoft Excel output below shows results of this multiple regression.
SUMMARY OUTPUT
Regression Statistics
Multiple R_____0.830
R Square______0.689
Adj. R Square__0.662
Std. Error_____17501.643
Observations___26
ANOVA
__________df________SS___________MS_______F_____Signif F
Regression__2____15579777040__7789888520__25.432__0.0001
Residual___23_____7045072780___306307512
Total______25___22624849820
____________Coef_________StdError_____tStat___p-value
Intercept_____15800.0000___6038.2999___2.617___0.0154
Capital_______0.1245_________0.2045____0.609___0.5485
Wages_______7.0762_________1.4729_____4.804__0.0001
At the 0.01 level of significance, what conclusion should the microeconomist reach regarding the inclusion of Capital in the regression model?

1) Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01.

2) Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01.

3) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is less than 0.01.

4) Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is more than 0.01

A builder started to construct an apartment by spending $1Million initially and in addition, paid $50K for county approval. The construction was canceled due to regulatory issues. What is the Cost of imperfect contract? and  State the factors that caused the issue of imperfect contract?

Thanks.

How much government spending needs to be increased to maintain full employment in the economy If the economy was facing recessionary gap of $900 billions? Assume MPC is .9. How much tax cut should government give if they wanted to eliminate this recessionary gap through tax cut?

For this week's assignment analyze a family's spending habits by creating a program that performs arithmetic calculations. The program should ask the user to enter information for the following questions. How much does the family spend on groceries per month? How much does the family spend on dining out per month? How much does the family spend on entertainment per month? How much does the family spend on rent/mortgage per month? How much does the family spend on utilities per month? How many family members are there? What is the family income per year? Questions 1–5 and 7 should accept decimal values from the user. Question 6 should accept an integer from the user. The program should output the total amount that the family spent on food per month. This includes groceries and dining out. The program also needs to output the total amount spent on living expenses each month. This is the sum of rent/mortgage and utilities. The program should also display the entertainment expenses per person per month. Finally, the program needs to show the family surplus (deficit if the number is negative). This is the income minus all expenses. But remember that the expenses are input as monthly numbers and the income is yearly, so you will need to convert the monthly expenses to yearly numbers to calculate the surplus.

Please use Java &

On top: import java.util.Scanner;

import java.text.DecimalFormat;

Then in the body of (your code), create a new format just like you created a scanner.

Like this: DecimalFormat df = new DecimalFormat(".0