Suppose that GDP is $8 billion, taxes are $1.5 billion, private saving is $0.5 billion, and public saving is 0.2 billion. Assuming the economy is closed, calculate the size of: Consumption and Investment

Q: For a perfectly competitive firm operating in the short run, in order to maximize profits it should…

A: In a perfectly competitive market, price is constant so it is equal to marginal revenue. Firms are…

Q: Calculate the Equivalent Single Payment at the end of the 5th year X(5) For a Project with: F. C. =…

A: In order to find an equivalent single payment at the end of the 5th year, we convert all the costs…

Q: A monopolist has a total cost function of TC(Q) = 1200 + 0.5Q² , with associated marginal cost of…

A: P = 300 - QTR = P*Q = 300Q - Q^2MR = d(TR)/dQ = 300 - 2QMC = Q

Q: Consider country A. Many people emigrated from country A to foreign countries. How would this shift…

A: Aggregate supply refers to the total amount of goods supplied in an economy by all the producers…

Q: If households from a small open economy expect future income to be lower than expected, then the…

A: The compensation that is being received by the workers or employees through fulfilling various types…

Q: Does the price control mechanism (price floor and price sealing) to a resource shortage provide an…

A: Yes, the price mechanism gives a positive and negative feedback loop.

Q: 1. Price searchers can set the price of their product. Does this mean that price searchers will…

A: The detailed explanation for both parts is as follows:-

Q: For this question only, X=5B and Y=D+250. Britney recently launched her new COVID-19 vaccine in T&T…

A: The monopoly pricing makes a deadweight loss on the grounds that the firm does without exchanges…

Q: Q)Suppose that a firm has only one variable input, labor, and firm output is zero when labor is…

A: PLEASE FIND THE ANSWER BELOW.

Q: 1. Suppose the economy has fallen into a recession (output level ?0), and the federal government…

A:

Q: 6. “The Lucas critique by itself casts doubt on the ability of discretionary stabilization policy…

A: The Lucas Critique was given by Robert Lucas which states that macroeconomic models used for policy…

Q: In the Keynesian AS/AD framework, an increase in government spending would lead to ____ pricelevels…

A: Equilibrium in the Keynesian AS/AD framework at the intersection of AD and AS curves.

Q: Fred and his employer both know that Fred can generate $200,000 of profit per year for his company.…

A: The monetary rewards offered to employees in exchange for their services are referred to as…

Q: to chage nces ustomers denote the price and demand for the domestic market then the demand equation…

A: Total costs = fixed costs + (number of units  x  variable cost per unit) A cost function can be a…

Q: Question 3 . Bill Gates is the monopoly in the computer market and the sole employer of IT…

A:

Q: You take out student loans to help pay for your degree at a 5% annual interest rate. Assume the bank…

A: A "real interest rate" is an interest rate that has been adapted to inflation. To work out a real…

Q: How the time affects supply, perishable Goods and how it affects the reproducible goods?

A:

Q: Assume at the level of output where MC=MR, a firm experiences TR = $40,000 per week, TFC = $100,000…

A: Firm uses condition MC=MR It refers that firm is maximizing profit Given information TR=$40000…

Q: In the above figure, when this monopolist firm produces its profit-maximizing output, it sets a…

A: In the above figure, when this monopolist firm produces its profit-maximizing output, it sets a…

Q: The graph below shows the demand for nectar in Gardenia. 20 16 12 8. 4 40 80 120 160 200 240 280…

A: We can find the demand function from the demand curve by using the intercepts

Q: The questions below refer to the following utility functions, which are often used in applications.…

A: The correct answer is given in the second step.

Q: There are two firms in a homogenous product market described by the demand function…

A:

Q: How do countries benefit from FDI?

A: Foreign direct investment refers to the purchase of share of a company by a company or individual…

Q: Baguio Rabbitry must replace the piping system in its barn. Based on cost of capital of 12% which of…

A: RORAI cannot be found out as all the net annual cash flows are  negative . For present worth and…

Q: L'offre et la demande annuelles de dictionnaires (un marché pur et parfait) sont : • Quantité…

A: Le surplus du producteur est la différence entre le prix que le producteur est prêt à recevoir et le…

Q: If Canada borrows more from the foreign countries than it lends to the foreign countries, then…

A: here we find the correct answer as follow;

Q: If in theory collusion is good for the members of a cartel, give at least three reasons why in…

A: Collusion refers to an illegal agreement between two rival firms to come together to disrupt the…

Q: In an economy, the supply and demand functions of the residential rental market are as follows: Qs =…

A: The equilibrium in the market is determined by the market forces of demand and supply. The demand…

Q: Assume that the graphs show a competitive market referenced in the question below.   Select the…

A: In a competitive market, equilibrium is achieved at a point where demand curve intersects supply…

Q: Show the effect of diminishing returns on the marginal and average cost curves of a firm in the…

A: diminishing returns is a  financial regulation expressing assuming one contribution to the…

Q: Suppose a firm's production function is Q = K.25L.25 Derive the long-run conditional factor demands…

A: A firm minimizes cost by employing resources at a point where marginal rate of technical…

Q: What is the size of market aslo explain the character of the commodity in our daily lives,?

A:

Q: Which of the following is FLASE for an extensive form game with perfect information? O A. All Nash…

A: An extensive form game is a description in detail of the decision problem's sequential structure…

Q: In the above figure, the left hand side graph represents a perfectly competitive industry and the…

A: Perfect competition is an ideal type of market structure where all producers and consumers have full…

Q: The full employment output level is the maximum amount of output that the economy can produce when…

A: Equilibrium in the goods market occurs at the intersection of AD and AS curves.

Q: warehouse is P600,000. The annual insurance rate on the warehouse is 1% and the merchandis stored in…

A: Question solved by both method below,

Q: What is the distinction between the laws and of returns and the returns to scale?

A:

Q: Which of the following statements is correct?   ____ If supply increases and demand decreases,…

A: Demand curve is a downward sloping curve that shows a negative relationship between price and…

Q: If I have an economy that produces only one good and in year i the quantity is Qi and the price is…

A: Nominal GDP could be measure multiplying by quantity of current year with current price. Real GDP…

Q: The IS curve will not shift when which of the following occurs? An increase in government spending.…

A: In economics, the IS-LM model is used by the policymakers to analyze the overall economic condition…

Q: Price level AD2 AD1 Real GDP Refer to Figure 13-1. Ceteris paribus, a decrease in personal income…

A: Ceteris paribus, a decrease in personal income taxes will increase the disposable income, and an…

Q: Solve: 1. A/G, 15%, 9 2. 4. P= ?, rate of increase = 2%, i=10%, n=20 P/G, 10%, 7 3. F/G, 7.2%, 10 5.…

A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…

Q: Consider the issue of government intervention in a market economy. Please provide brief discussions…

A: Government intervention in an economy is a talk about the presence of public power which has this…

Q: Question 1 In Ontario, the market for pop is controlled by Pepsi and Coke (we assume that consumers…

A: A monopolist maximizes its profits at the selling point where marginal revenue equals marginal cost…

Q: Jane is the general manager at a new café and wants to hire a few baristas. The going rate for…

A: Jane would generally pay $9.55 per hour as this is the price that is already prevailing in the…

Q: In order for something to function well as a medium of exchange, it must be Oa. readily and widely…

A: When talking about exchange of goods and services in an economy, it can be said that an individual…

Q: The demand function of "İsot Capsicum Biber Komandit Şirketi" of Ceylanpınar is: p = 1000 e 2 q…

A:

Q: A downward sloping Philips curve implies that output increases as inflation rises. TRUE / FALSE An…

A: In economics, the Phillips curve is used by economists and policymakers to explain the relationship…

Q: Maria loaned an amount of P100,000.00 payable in 15 equal quarterly installments. The first payment…

A: Cash flow is the inflow or outflow of cash into the business or outside the business. It means the…

Q: Comparative statics in the steady-state: Draw and graph and Using this graph, explain what happens…

A: Steady-state growth is balanced growth using variables of the economy. This question represents the…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.