Question
Consider an economy described by the following
equations:  C = 100 + 0.6 ∗ (Y − T) (consumption function)  I = 200 − 1000 ∗ r (investment function)  G = T = 100 (government purchase and tax) where Y is the national income and r is the interest rate. Derive the IS curve.ÂSolution
Equalize the planned expenditure and actual expenditure to obtain an equation that relates Y and r.
The IS curve can be derived as 0.4Y + 1000r = 340.
A monopolist sells its product in two separate markets with different price elasticities of demand. The marginal cost of production is constant at $20 p...
Consider a bargaining game:
Find pure strategy Nash equilibrium.
With the rise in price from ₹ 8 to ₹ 14. Total expenditure on the commodity rises by 40% and becomes ₹ 1,120. Calculate the price elasticity of de...
Two mutually exclusive events
If the regression line of Y on X is Y =30 -0.9X and the standard deviations are Sx = 2 and Sy = 9, then the value of the correlatio n coefficient rxy i...
Whenrxy>0,thenbyxandbxyareboth:
...What is the mean of a data if its Pearson's coefficient of skewness is 0.25, standard deviation is 7 and mode is 20.
In the context of development economics, a persistent condition known as the poverty trap is often modeled as a stable equilibrium at a low level of inc...
Which of the following instruments is traded in the 'Corporate Debt Market'?
Within a country, the domestic price of a product will equal the world price if
