Consider a model of a goods market in a closed economy that is characterized by the following equations: Consumption : C = 160 + 0.6(Y −T ) Investment : I = 150 Taxes : T = 100 Government spending : G = 110 EQ Output : Y = 1/(1 −c1)[c0 + I + G −c1T] (a) Solve for the output in the economy. (b) Compute the sum of private and public saving. (c) Considering your answer to part b and the information given above, is this economy in equilib- rium? Explain.

Q: Suppose that Starbucks reduces the price of its premium coffee from $2.20 to $1.80 per cup, and as a…

A:

Q: For number 1 and 2 assume an individuals Utility function is given by: 1/2 U(q1, q2) = q₁ q₂ 1.…

A: Given  Consumer utility function: U(q1,q2)=q10.5q2             ......(1) A utility function is a…

Q: The U. S government subsidizes flood insurance because those who want to buy it Iive in the flood…

A: The term "subsidies" describes the benefits provided by the government to encourage the production…

Q: he table below shows cost data for producing different amounts of sofas. Use the given information…

A: Total cost is the sum of fixed cost and variable cost.  Average fixed cost is the fixed cost divided…

Q: Given the following demand equation: Qxd=68-0.8Px + 0.005M+ 1.7Py - 3.4Pz; where: Qxd is quantity…

A: Qxd=68-0.8Px + 0.005M+ 1.7Py -3.4Pz where Qxd is the quantity demanded for good X, Px is, the price…

Q: Is tourism sustainable? if yes state the reason/ if no state the reasons  2.  outline steps that…

A: The tourism industry, which is obviously based on people, leads to income generation and a growing…

Q: Toyota Motor Corporation operates in a oligopolistic market. How should firms reacte to a recession…

A: Oligopolistic market refers to the type of market in which there is few sellers having high degree…

Q: 8. Consider the OLG model with capital. Each individual is endowed with y units of the consumption…

A: In the study of economics, the term utility can be defined as the total satisfaction or benefit that…

Q: A piece of property is purchased for $25,000 and yields a $1500 yearly net profit. The property is…

A: The time value of money refers to a sum of money that is worth greater now than the same sum of…

Q: Match the descriptions below to the appropriate concept: A. Diseconomies of Scale B. Economies of…

A: Economies of scale is dependent on the average total cost.  The efficient scale is where the average…

Q: What does neoclassical theory say about income distribution and inequality

A: Macroeconomics refers to the branch of economics that deals with performance, structure, behavior,…

Q: In a cold storage plant, it is desired to determine whether to use insulation two inches thick or…

A: Heat Absorb through the walls without insulation is 96 Two-inch insulation cost = 30.40 which cut…

Q: Bob and Billy each invest $1,000,000 and $1200, respectively, in their own account with the same…

A: In an economy, an investment is the buying of products that are not consumed today but are used in…

Q: aiting times (in minutes) of customers in a bank where all customers enter a single waiting line and…

A: Mean is found out by dividing the sum of all observations by the number of observations.

Q: 4. A company introduced a new product to the market in the first month of the year which was…

A: Price elasticity of demand is defined as the percentage change in the quantity demanded for a good…

Q: After reviewing and understanding the functions of the Federal Reserve, would you agree that many…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Write a clearly positive economic statement referring to comparative advantage. Explain why is it a…

A: Positive economic statements are the ones which do not necessarily have to be true but they can be…

Q: Suppose it is “All You Can Eat” Night at your favorite restaurant. Once you’ve paid $69.95 for your…

A: Utility refers to the satisfaction attained from the consumption of goods. The aim of the consumer…

Q: Given the demand function D(p) = 200 – 3p², Find the Elasticity of Demand at a price of $5 At this…

A: An elasticity of demand determines how sensitive the quantity demanded will be to the price. It will…

Q: The United States is one of the world’s wealthiest countries. Think of a recent case in which the…

A: We show that Any choice to allocate resources and government spending has both good and bad…

Q: In 1997, the economy of Aptonville had an aggregate demand and aggregate supply according to the…

A: Equilibrium Output is where Quantity Demanded  is equal to Quantity Supplied. or, where Demand =…

Q: Which of the following is a characteristic of a monopoly? Responds to changes in the market price.…

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: Define Supply and Demand Give examples supply and demand regarding the oil prices in the US.

A: Supply definition - Supply refers to the quantity of a particular goods or service that suppliers…

Q: Due to a sales tax, the sale of gameboys decrease from 80 to 70. This tax is a tax on sellers when…

A: Demand is the quantity of the commodity that is sought after at various prices throughout a specific…

Q: Now let's say 8 is still at 4, however, 4 is now at 2 for equilibrium, How would I go about…

A: Consumer surplus is defined as the difference between the maximum price the consumer is willing to…

Q: 10. The following table describes the number of yards of cloth and barrels of wine that can be…

A: Opportunity cost is the cost of producing one good in terms of other.  Absolute advantage is where…

Q: If the consumer price index increases from 200 to 240 in a one-year period, then the inflation rate…

A: A consumer price index is a price index, the price of a weighted average market basket of consumer…

Q: Why can most markets be described as reasonably competitive rather than perfectly competitive?…

A: In economic theory, perfect competition arises when all the firms are selling the identical items,…

Q: How do these economic indicators are affected by the government's fiscal policy, monetary and…

A: The use of government spending and taxation to influence the economy is known as fiscal policy.…

Q: Please select correct group

A: The demand side is made by the consumers, or purchasers who buy these products supplied by the…

Q: A consumer  is willing to pay $300 for cricket match. The cost of the ticket is $120. What is…

A: Introduction: It is given that the consumer is willing to pay for the ticket is $300 and the actual…

Q: A baseball team plays in a stadium that holds 58000 spectators. With the ticket price at $11 the…

A: there are 58,000 Spectators Price = $11, then  average attendance is 26,000 The price dropped to…

Q: A firm introduced a new product to the market in the first month of the year which supported with…

A: Total revenue – total variable costs – total fixed costs = Profit (USP x Q) – (UVC x Q) – FC = P 7.5…

Q: Other things remaining the same, the law of demand implies that: Select one: O a. as the price of a…

A: The demand curve depicts the inverse relationship between price and quantity demanded, by keeping…

Q: Suppose demand and supply are given by Qd = 40 − P and Qs = 1.0P − 10. a. What are the equilibrium…

A: The number of units of the commodities that consumers have requested at a specific price over a…

Q: o offset the effect of households and firms deciding to hold more of their money in checking account…

A: The money supply is the sum total of currency and demand deposits. The Banks can create money…

Q: Suppose the bank expects interest rates to rise which would impact the value of their government…

A: A Treasury Bond is defined as a government debt security which is issued by the U.S Federal…

Q: Redo the problem in Question 2 under the assumption that the person has utility function u(c) =…

A: Given that; Wealth (W) = $500,000 Incase of flood W goes down by $50,000 (L) Probability of flood =…

Q: Kansas Public Service Company wishes to determine the capitalized worth (present value of cycle…

A: To find the present value of the above cash flow we discount it at the rate of 9% .

Q: Match the scenarios below to coresponding source of each monopoly: A. One firm owns all natural…

A: Monopoly is a market arrangement when there is only one seller who has complete market control. The…

Q: Would the maximum loan that a bank can make be different when receiving a discount loan from the…

A: A commercial bank refers to a financial institution that accepts deposits, offers to check accounts…

Q: Q1. Jerry has wealth of $60 and derives utility from this according to the utility function U (w) =…

A: Given,  Utility function : U(w) = 1 - 1/w Wealth of Jerry = 60  Probability of winning lottery = 50%…

Q: 8. Figure below shows the Percentage of Total National Income Spent on Health Care in the United…

A: A value of a variable as a percentage of the value of the other variable is given as:     = (value…

Q: Identify the elements of scarcity, choice, and opportunity cost in each of the following: 1. The…

A: Scarcity refers to the scarce or the unavailability of the resources and inputs to produce a certain…

Q: Asian American small business such as Vietnamese American nail salons offers previously expensive…

A: Given,  Nail Salon offers previously expensive products for a cheaper price, making it available to…

Q: When playing roulette at a casino, a gambler is trying to decide whether to bet $10 on the number 30…

A: The probability for net profit of 30 is 3/38 The probability for lossing of 10 is 35/38

Q: Which of the following is a challenge of government setting a price floor? A risk of excess supply…

A: price floor is the minimum price that should be charged from the consumer.  Price floor is binding…

Q: The equilibrium interest rate: Select one: a. both has an inverse relationship with money supply…

A: Savings are the source of the loanable funds available. It is predicated on borrowing that loanable…

Q: Who benefits economically from the rise of gig work, like venture capitalists, shareholders, gig…

A: Introduction A gig means a doing job for a specified period of time. In a gig economy, companies…

Q: can you please explain part c in more details

A: Government intervention is the policy of the government under which it controls the private sectors…