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Give Answer Category : Financial Economics | Answer: 1 15 Hours Ago

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Give Answer Category : Economics | Answer: 1 8 Days Ago

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You are given the following information about the economy: autonomous consumption = $300 billion planned investment = $300 billion government spending = $500 billion mpc = .8 imports = $200 billion exports = $500 billion

g. If full employment Y = $6000 billion, is there a recessionary or inflationary gap?

h. If full employment Y = $6000 billion, what is the GDP gap?

i. What kind of fiscal policy (expansionary or contractionary) could help the economy close the gap?

j. If you decided to change government spending, how much would you change G to close the GDP gap?

k. If the value of the dollar depreciated, how would this affect net exports? AD?

Give Answer Category : Economics | Answer: 0 11 Days Ago

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Give Answer Category : Developmental Economics | Answer: 0 12 Days Ago

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A monopolist has access to an industry with market demand P = 9-y, where y is the firm’s quantity. Its cost function is C(y) = 5y. The government can use a subsidy to influence the monopolist to produce the efficient quantity in this market

a) Would the firm ever operate at a point elasticity less than 1? Explain. 

b) Solve for the efficient outcome, and determine the per-unit subsidy that must be used.

c) Determine the cost to the government of this subsidy.

d) Should the government engage in this subsidy policy? Explain.

Give Answer Category : Micro Economics | Answer: 0 15 Days Ago

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Give Answer Category : Micro Economics | Answer: 0 1 Month Ago

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