economics

Economic questions

            Define cost behavior. Define and discuss how variable cost, fixed cost and mixed cost is different. Provide an example of each. communicate your own understanding.    

Net exports and net capital outflows

Studies indicate that net exports and net capital outflows tend to be equal. a. Explain why net exports and net capital outflows tend to be equal. b. Explain how a change in interest rates can lead to changes in net exports.  

Long-run macroeconomic equilibrium

  The following questions relate to long-run macroeconomic equilibrium and the stock market boom. Assume that a hypothetical economy is at long-run macroeconomic equilibrium, with full employment and stable prices. Suddenly the stock market prices increased much more than expected, increasing investors’ wealth, and causing a short-term period of unusually increased optimism about the future …

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The income and consumption

  Given the income and consumption for the three individuals in the table below, calculate their individual marginal propensity to consume (MPC) and the total marginal propensity to consume for the entire group. Name Income Consumption MPC Anne $20,000 $17,000 (total) Brad $30,000 $22,000 (total) Claire $40,000 $24,000 (total) Total (total) (total) (total)     …

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