Business, 26.06.2020 15:01 amortalstardev
urgent to me please! Let: C = consumption, Ip = investment spending (as a function of price level), G = government spending, Tx = tax revenue, Yd = after-tax income, Assume for a given closed economy: C=100 + 0.9 Yd – 20P Ip= 400 – 40P G=300 T=100 Moreover, aggregate supply curve for this economy is defined by the following equation: P=1.41 + 0.0001Y a. According to the investment equation (Ip= 400 – 40P) as overall price level in the economy increases investment spending decreases. How could you explain this situation? Please use graphs to elaborate your answer. b. Find the equilibrium level of overall price and aggregate output in this economy. What would be the value of consumption and investment spending at this equilibrium? c. How would the equilibrium aggregate output and price level change if government spending increases to Gnew=400? What would be the value of consumption and investment spending at this new equilibrium? d. Compare equilibrium values of investment spending and consumption you find in parts (c) and (d). How would you explain the changes? Elaborate your answer for both investment and consumption.
Answers: 3
Business, 22.06.2019 15:30, Kiaraboyd9366
The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?
Answers: 3
Business, 22.06.2019 18:00, theflash077
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
Business, 22.06.2019 23:40, Anliz0179
Elite coffee and bakery, a café that offers a relaxing environment to enjoy quality coffees, teas, soups, and other menu items, has a poster in the front of its restaurants that reads, "we will always provide a quality product to our customers better meet the challenges of their day and always take the time to offer caring service one person at a time." this statement is elite's
Answers: 2
urgent to me please! Let: C = consumption, Ip = investment spending (as a function of price level),...
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