MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
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Chapter 5, Problem 3DQ
To determine
The difference between the rent seeking and the profit maximization.
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Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:
15. How is the Keynesian expenditure multiplier implicit in the Keynesian version of the AD/ASmodel? Explain and show mathematically. (note: this is a tough one)
Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:
13. What would happen to the net exports function in Europe and the US respectively if thedemand for dollars rises worldwide? Explain why.
20. Given the mathematical model below, solve for the expenditure multiplier for a) government
spending, G; and b) for consumer taxes, T. (medium difficulty)
Y=C+I+G
C=Co+b(Y-T)
1 = 10
T=To+tY
G = Go+gY
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