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7-1 Discussion: Macroeconomics and Macro Variables
Macroeconomics and Macro Variables
I have found an article on the slowed down GDP of China. According to the latest data available, the GDP growth of China has slowed down in nine of the last 10 quarters. The data also showed growth in economy by 7.6 ...
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8-1 Discussion: Aggregate Output and Demand
Aggregate Output and Demand
The article that I found highlights that US economy is in recession right now. The article says that the economy of the U.S. is currently in a recessionary cycle and no matter what the business experts says, there is nothing that policy ...
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9-1 Discussion: Aggregate Output and Equilibrium
Aggregate Output and Equilibrium
The article that I have selected for the post of discussion is related to current fiscal policy of United States and its consequences on U.S. competitiveness. It is mentioned in the article that for United States to prosper, the government should adopt ...
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7-4 Homework: Problem Set
Homework: Problem Set
1. A surprise increase in investment spending
A surprise increase in investment spending leads to increase in aggregate demand that in turn leads to increase in the price level and output. Since we are required to keep prices stable at P=100 and our desire is to ...
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8-4 Homework: Problem Set
Homework: Problem Set
Data:
Total Families: 400
Poor: 200
Rich : 200
Income of Poor Families: $200/Week
Income of Rich Families: $400/Week
Spending of Poor Families: $100 plus one half of its each week income (200/Week)
: $100 + $100 = $200
Spending of Rich Families: $100 plus one half of its each week ...
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9-4 Homework: Problem Set
Homework: Problem Set
GDP
Taxes
DI
C
I
G
C+I+G
1250
200
1050
800
300
200
1300
1500
200
1300
1000
300
200
1500
1750
200
1550
1200
300
200
1700
2000
200
1800
1400
300
200
1900
2250
200
2050
1600
300
200
2100
2500
200
2300
1800
300
200
2300
2750
200
2550
2000
300
200
2500
Solution
1. Calculation of Disposable Income (DI) at each level of GP is given below:
At GDP=1250, the Disposable Income is calculated as Disposable Income= (GDP-Taxes)
Substituting values from the table:
Disposable Income= (1250-200) = 1050
At GDP=1500, the Disposable Income is calculated as Disposable Income= (GDP-Taxes)
Substituting values from the ...
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Regression Analysis
Regression Analysis
Question No # 1
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.835478305
R Square
0.698023997
Adjusted R Square
0.677434724
Standard Error
38.26108281
Observations
48
ANOVA
df
SS
MS
F
Significance F
Regression
3
148889.8565
49629.95
33.90231
1.64557E-11
Residual
44
64412.06016
1463.91
Total
47
213301.9167
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
Intercept
514.2669369
113.3315243
4.537722
4.36E-05
285.8622608
742.671613
285.8622608
742.671613
6-Pack Price ($)
-242.9707509
43.52628127
-5.58216
1.38E-06
-330.6922056
-155.2492962
-330.6922056
-155.2492962
Income/Capita ($1,000)
1.360181992
1.691791973
0.803989
0.425726
-2.049400646
4.76976463
-2.049400646
4.76976463
Mean Temp. (F)
2.931228055
0.711458375
4.120027
0.000165
1.497377934
4.365078176
1.497377934
4.365078176
Multiple Linear Regression Equation
Cans = 514.266 - 242.970*6-pack-price+1.36018*Income/Capita+2.93122*Mean Temp.
Question No # 2
Interpretation of Coefficient of Independent Variables
Demand Estimation Function
Cans = 514.266 - 242.970*6-pack-price+1.36018*Income/Capita+2.93122*Mean ...
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Samuelson and Marks, Question #10, p. 220.
Samuelson and Marks, Question #10, p. 220.
Analysis
It is a general rule that if number of production hours is increased it will also increase the variable cost of an organization. There are different aspects once the variable cost is increased. One is that there will ...
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Marginal Cost and Marginal Revenue
Marginal Cost and Marginal Revenue
Part A
If the station plans to buy from supplier A then it will have to pay station fees of $1200 and $ 2 for each DVD brought from the supplier. Therefore it will have to order DVD's that are able to sell ...
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Economics
Economics
Question 2.2
Number of beds = 500
X = 1200 - 2p
P = price of a bed day
X = number of patients days of care demanded
Fixed cost of adding a bed = $150
Total house keeping cost = C = (B/3.5)2
Net marginal revenue (NMR) = Marginal Revenue - Marginal Cost
Marginal Revenue ...