Starting from long-run equilibrium, a decrease in autonomous investment results in output in the short run and higher; higher higher; potential lower; potential lower; higher output in the long run.
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- Explain why the AVC curve is "U shaped"?A) :What is S if Y=200, AE=260, C=220 and I=40 in an imaginary economy?B) : If the disposable income is 200 and the consumption expenditure is 220 in an imaginary economy, what are the savings? C) University Café earned 20 TL by selling 10 bagels in one day. The total cost of 1 bagel is 0.5 TL. It is assumed that the cafe has no other costs. What is the firm's accounting profit?Yd Consumption Expenditure $ 0 $ 4,000 $ 10,000 $ 12,000 $ 20,000 $ 20,000 $ 30,000 $ 28,000 $ 40,000 $ 36,000 $ 50,000 $ 44,000 Calculate equilibrium level of income if autonomous Investment of $6,000 was made.
- Figure 7.1 C b 100 In Figure 7.1: distance a is induced consumption. distance b is autonomous consumption. autonomous consumption is 100. O induced consumption is 100.Explain the short-run and long-run effects of an exogenous decrease in investment by explanation and using graphical analysis.Hi. I'm not sure how u would get this answer. I keep getting a negative answer for investment 2.
- If the consumption function in the economy is given as C = 200 + 0.3(Yd) what will be the saving when disposable income is equal to $100? Group of answer choices a. $270 b. -$130 c. $230 d. $70How is optimal investment for the firm affected by an increase in the current capital stock? A. The demand for investment goods will increase along the optimal investment schedule. B. The optimal investment schedule shifts to the right. For each level of investment, the future marginal product of capital will increase. C. The demand for investment goods will decrease along the optimal investment schedule. D. The optimal investment schedule shifts to the left. For each level of investment, the future marginal product of capital will decrease.As the interest rate rises, does the intertemporal budget constraint become steeper or flatter?