Choose the correct match of each of the following economic concepts: A Positively slopped line showing the relation between interest rate and investment R Negatively slopped line showing the relation between interest rate and investment c The percentage spent on consumption from any increase in national income Investment is highly sensitive to changes in the interest rate D. Marginal propensity to consume E Unemployment is a temporary phenomenon Break-even Point E The percentage of national income being spent on consumer goods v Marginal Efficiency of Investment G Is just another name for interest rate The Keynesian Theory H Savings equals consumption | Savings equals zero | The average propensity to consume equals zero K Unemployment could persist for a long period of time The change in national income divided by the change in consumption A Moving to another question will save this response «< Question 2 of 19>> 10:17 AM 21°C Clear earch 9/4/2021 DELL F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete & Num Lock Backspace 8

Choose the correct match of each of the following economic concepts: A Positively slopped line showing the relation between interest rate and investment R Negatively slopped line showing the relation between interest rate and investment c The percentage spent on consumption from any increase in national income Investment is highly sensitive to changes in the interest rate D. Marginal propensity to consume E Unemployment is a temporary phenomenon Break-even Point E The percentage of national income being spent on consumer goods v Marginal Efficiency of Investment G Is just another name for interest rate The Keynesian Theory H Savings equals consumption | Savings equals zero | The average propensity to consume equals zero K Unemployment could persist for a long period of time The change in national income divided by the change in consumption A Moving to another question will save this response «< Question 2 of 19>> 10:17 AM 21°C Clear earch 9/4/2021 DELL F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete & Num Lock Backspace 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer the following question. Thanks! Consider a classical economy described as follows: ? = ?^(1/2)?^(1/2) , where L is the amount of labor and K is the amount of capital. The economy has 10,000 units of labor and 10,000 units of capital. Consumption (C): 5,020-100r, Investment (I) : 2,000-100r, Taxes (T): 2,500, Government Purchases (G) :3,000
With the use of the neoclassical model of investment, explain what would happen to the rental price of capital, the cost of capital, and investment if a hurricane destroys some portion of the capital stock.
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Suppose we start with a general equilibrium, and the economy experience an improvement in payment technology. Which of the following statements correctly describes the difference between the initial general equilibrium and the final general equilibrium 1. the real interest rate is greater under the final equilibrium 2. the real interest rate is smaller under the final equilibrium 3. the real interst range does not change under the final equilibrium 4. None of the above
first image is resource. questions starts in the second image (4. and 5.)
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Choose the correct match of each of the following economic concepts: A Unemployment caused by a decrease in the demand for some goods and services B The equilibrium point is to the left of the full employment point graphically C The inverse of the marginal propensity to consume (MPC) D Total Leakages exceeds Total Injections The Multiplier The equilibrium point is the same as the full employment point graphically E v National income equilibrium E Total Injections exceeds Total Leakages Ev Inflationary Gap G The equilibrium point is to the right of the full employment point graphically Structural Unemployment | Increases with the increase in the marginal propensity to save (MPS) |Unemployment resulting when workers change their jobs |Increases with the increase in the marginal propensity to consume (MPC) K Total Leakages equals Total Injections Unemployment that appears during the downturn of the business cycle A Moving to another question will save this response. « < Question 16 ch…
Using a graph and words, explain the effect of SRAS and LRAS curves when the President of the United States would give businesses who invested in new plant and equipment an investment tax credit equal to 10 percent of their investment and the marginal tax rate has been reduced to people who make over $50,000 and are permanent. Will you work more or less when marginal tax rates are cut and will businesses invest more in plant and equipment when an investment tax credit has been implemented by the President of the United States? Also explain in your graph what will happen to equilibrium price level and equilibrium real GDP and the unemployment rate when the marginal tax rates are cut and are permanent for people making over $50,000 and the investment tax credit has been implemented by the President of the United States.
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