1)At equilibrium expenditure, unplanned changes in inventory:

a-Must be positive

b-Must be zero

c-Must be negative

d-Might be either positive or negative

2)An economy that is above its natural real GDP level means that:

a-Is in an inflationary gap

b-The unemployment rate is less than the natural unemployment rate

c-The labor market is in equilibrium

d-A, and B

3)If government spending is larger than tax collection, we have:

a-Equilibrium

b-Budget deficit

c-Budget surplus

d-Neutral status

4)An expansionary fiscal policy is represented by:

a-An increase in taxes

b-A decrease in government spending

c-An increase in price level

d-A decrease in real output

Mr. Khalid is a 41-years-old married man. He is an engineer in construction company and has two children. He was diagnosed with bone marrow cancer four months ago. He is receiving palliative care from community-based palliative care center. Although the disease is progressing, he is trying to function independently from his family. He looks full of life by showing enjoyment in spending time with his family and friends. He likes to watch TV with his children and spending time with doing some homework.

1. Discuss the concept of health in the light of the above case scenario.
2. What are the roles that community health nurses can take while she is working with Mr. Khalid?

Assume the following Keynesian model for the economy of Boogerland: AE = C + I + G + (X - M) C = 600 + .9Yd I = 200 G = 100 X = 200 M = 100 + .1Yd T = 100 a. Find the aggregate expenditure function and equilibrium level of GDP. b. Using a “Keynesian cross” (or 45-degree line) diagram, show graphically the equilibrium in part a). c. What is the spending multiplier in this model? Tax multiplier? d. At equilibrium, does the government have a budget surplus or a budget deficit? Of how much? e. Show that leakages = injections at equilibrium. f. If government spending increases by $100, find the new equilibrium level of GDP. Show graphically.

Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy’s multiplier is 3

a.  If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level?

aggregate demand will shift _ (rightward or leftward) by _ billion

b. in what direction and by how much will it eventually shift?

aggregate demand will shift_ (rightward or leftward) by _ billion

b.

Question 1:

Given the following utility function: (U=Utility, l=leisure, c=consumption)

U = 2l + 3c

and production function: (Y=Output, N or Ns=Labour or Labour Supply)

Y = 30N^1/2

If h = 100 and G =10 (h=Hours of labour, G=Government spending). Find the equilibrium levels of the real wage (w), consumption (c), leisure (l), and output (Y).

Question 2: (Continuting from question 1)

a, Find the relationship between total tax revenue and the tax rate if G = tWN. (G=Government spending, t=tax, W=wage, N=Labour)

b, Find the impact of a change in the production function to:

Y = 45N^1/2

Question 1: Given the following utility function: (U=Utility, l=leisure, c=consumption) U = 2l + 3c and production function: (Y=Output, N or Ns=Labour or Labour Supply) Y = 30N1/2 If h = 100 and G =10 (h=Hours of labour, G=Government spending). Find the equilibrium levels of the real wage (w), consumption (c), leisure (l), and output (Y). Question 2: (Continuting from question 1) a, Find the relationship between total tax revenue and the tax rate if G = tWN. (G=Government spending, t=tax, W=wage, N=Labour) b, Find the impact of a change in the production function to: Y = 45N1/2

Question 91 pts

The economy has a contractionary gap. According to the Keynesians, the government should:

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Question 101 pts

Full employment GDP is $2 trillion and the economy is currently producing $1.8 trillion.

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 126,000 units requiring 504,000 direct labor hours. (Practical capacity is 524,000 hours.) Annual budgeted overhead costs total $831,600, of which $584,640 is fixed overhead. A total of 119,500 units using 502,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,300, and actual fixed overhead costs were $555,550.

Suppose that our total productivity function is given by TPHC = 0.5HC^2 - HC. What is the marginal product of healthcare for the 5th unit of HC? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a 7.5

b 3.5

c 4

d Not enough information.

All healthcare exhibits diminishing marginal productivity of healthcare.

a

True

b

False

c

It depends on the type of healthcare.

Suppose that life expectancy increases from 80 to 100 years, when healthcare spending increases from $1 million to $1.1 million. What is the elasticity of health with respect to healthcare spending?

a

2.5

b

0.4

c

0.25

d

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