1. This question is based on our lectures on the IS-LM framework. Consider the economy given by the following equations: C = 0:8(1 t)Y t = 0:25 I = 900 50r G = 800 L(r; Y ) = 0:25Y 62:5r M P = 500 (a) What is general deÖnition of the IS curve? Derive the IS curve from the above equations.
(b) What is general deÖnition of the LM curve? Derive the LM curve from the above equations.
(c) Describe in words the conditions that satisfy the deÖnition of an equilibrium. Find the equilibrium level of the endogenous variables.
(d) Determine the level of spending multiplier with and without money market. Explain the di§erence (if any).
(e) Explain in words what a§ects/determines the slope of IS and LM curves.
(f) Explain how the slope of IS curve determines the e§ectiveness of monetary policy and that of LM curve determines the e§ectiveness of Öscal policy?
(g) Under what circumstances might the LM curve be horizontal? Under such case what would be the spending multiplier? Explain the implications of increasing the government spending. (10 mar
In: Economics
Use Excel to develop a regression model for the Consumer Food Database (using the “Excel Databases.xls”
file) to predict Annual Food Spending by Annual Household Income. Assume a 5% level of significance.
(file here: https://drive.google.com/file/d/13uDUXwoSRZHEUtjMUedu2yjR_4lrLepC/view?usp=sharing )
Must complete all the parts to this problem:
In: Statistics and Probability
V+Consider a closed economy with fixed prices and wages. Suppose
the consumption
function is given by
? = 50 + 0.5?
?
where C is consumption and ?
?
is disposable income. The investment function is
given by
? = 30 − 5?
where I is investment and r is the interest rate. The demand for
money is given by
?/? = 200 + 2? − ℎ?
where M is the amount of money demanded, P is the price level, and
h is a parameter
measuring the sensitivity of money demand to the interest rate.
Assume that the
price level is fixed at P = 1.
(a) Assume that h=20. If government spending is G=20, taxes are
T=10, and
the money supply is M=300, find the equilibrium levels of output
and the
interest rate.
(b) Now assume that government spending decreases to 10. What is
the
multiplier? Is the effect of government spending on output
increased or
decreased when h is larger? Explain your answer intuitively.
(c) Now suppose taxes decrease to 0. What is the multiplier? Will
the
multiplier be different than your answer in part (b)? Explain
intuitively.
i am having trouble with b and c. could you do them in detail mainly the multipliers
In: Economics
X Company manufactures dartboards. Its standard cost information
follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (cork board) | 3.50 | sq. ft. | $ | 2.40 | per sq. ft. | $ | 8.40 | |
| Direct labor | 1 | hrs. | $ | 11.00 | per hr. | 11.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1 | hrs. | $ | 0.65 | per hr. | 0.65 | ||
| Fixed manufacturing overhead ($58,500 ÷ 130,000 units) | 0.45 | |||||||
X company has the following actual results for the month of
September:
| Number of units produced and sold | 110,000 | |
| Number of square feet of corkboard used | 400,000 | |
| Cost of corkboard used | $ | 1,000,000 |
| Number of labor hours worked | 125,000 | |
| Direct labor cost | $ | 1,262,500 |
| Variable overhead cost | $ | 72,000 |
| Fixed overhead cost | $ | 54,000 |
Required:
1. Calculate the direct materials price, quantity,
and total spending variances for the company.
2. Calculate the direct labor rate, efficiency,
and total spending variances for the company.
3. Calculate the variable overhead rate,
efficiency, and total spending variances for the company.
In: Accounting
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (clay) | 1.60 | lbs. | $ | 1.70 | per lb. | $ | 2.72 | |
| Direct labor | 1.60 | hrs. | $ | 14.00 | per hr. | 22.40 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1.60 | hrs. | $ | 1.20 | per hr. | 1.92 | ||
| Fixed manufacturing overhead ($312,500.00 ÷ 125,000.00 units) | 2.50 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 130,000 | |
| Number of pounds of clay used | 228,200 | |
| Cost of clay | $ | 365,120 |
| Number of labor hours worked | 175,000 | |
| Direct labor cost | $ | 2,975,000 |
| Variable overhead cost | $ | 250,000 |
| Fixed overhead cost | $ | 330,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp.
2. Calculate the direct labor rate, efficiency,
and total spending variances for Barley
Hopp.
3. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp.
In: Accounting
4. Assuming the government of country Balistan has a balanced budget requirement and collects $100 million more in taxes than expected in 2016. As a result, the government would have to
increase taxes by $100 million.
increase spending by $100 million.
reduce spending by $100 million.
5.
Assuming that income tax is the only source of revenue for the government, with tax revenue of $50 billion and government spending totaling $70 billion, which of the following is true of the government’s budget?
The government has a budget surplus of $20 billion.
The government has a balanced budget of $70 billion.
The government has a budget deficit of $20 billion.
10.
Banks create money through which of the following processes?
printing money
lending money
writing checks on bank deposits
11.
Corporate stock ________.
represents debt in a firm.
is considered to be a loan from a bank.
represents ownership in a firm.
14.
If a person owns stock in a corporation, what do they own?
Corporate stock represents ownership in a firm.
Corporate stock is considered to be a bank bond.
Corporate stock represents firm debt.
16.
Debit cards are a form of
debt.
money.
credit.
In: Economics
Site visits to your seller's website on Amazon fluctuate over the course of the year, but the general trend is up. Growth in Q1 relative to Q4 is down by −12.0−12.0% quarter-over-quarter, Q2 is up 5.05.0% relative to Q1, Q3 up by 7.07.0% over Q2, and Q4 is up by 21.021.0% over Q3. During all of Q2 2019 your store received 24972497 visits.
How many visits will there be in all of Q2 of 2020?
How many visits in total in the 12 months leading up to the end of June 2020?
In: Finance
You have one million dollars in your investment account and choose to keep your money allocated in the following proportion and rebalance each quarter: i. 60% in stocks via ETF SPY; ii. 40% in bonds via ETF AGG. Over the past quarter, AGG went up by 3% and SPY went up by 1%. a. What is your account balance before rebalancing? b. How do you rebalance your account? What to buy and what to sell? How many dollars to buy and how many dollars to sell?
In: Finance
There is an airfoil with a 3ft chord length for a small remote controlled aircraft. The lift coefficient is C = 0.59 and the pitching moment coefficient at a quarter chord length is Cm,c/4 = -0.032 for a landing spped of 45 ft/s at sea-level std conditions
a) Calculate the lift per unit span (in lbf/ft)
b) Calculate the moment about the quarter chord position per unit span
c) Calculate the moment about the leading edge per unit span
d) If the weight of this small aircraft is 76 lb, what is the wing span required
In: Mechanical Engineering
A passenger with mass 85 kg rides in a Ferris wheel. The seats travel in a circle of radius 35 m. The Ferris wheel rotates at constant speed and makes one complete revolution every 25 s.
A)
Calculate the magnitude of the net force exerted on the passenger by the seat when she is one-quarter revolution past her highest point.
B)
Calculate the direction of the net force exerted on the passenger by the seat when she is one-quarter revolution past her highest point.
I need exact answers. Thank you
In: Physics