# Macroeconomics Multiple Questions - Fill in the table below...

• Homework Help
• c0urseher0tut0r
• 9
• 95% (194) 184 out of 194 people found this document helpful

This preview shows page 1 - 4 out of 9 pages.

Fill in the table below. The current wage is \$100 and the price of output (Q) is \$30. Each box is worth½ of a point. Enter whole numbers only (no commas, no decimals, no dollar signs) and if a value is negative, be sure to enter the negative sign.LQMPLMRPMarginal ProfitTotal Profit00- - - - -- - - - -- - - - - - - - - - -016618080802148240140220319515050270423412020290526390-10280628260-402402.Use the table from question 1 to complete the next six questions. Enter the correct values in the boxes below. Enter only whole numbers (no commas, no decimals, no dollar signs). Each fill-in-the-blank below is worth 3 points.This profit maximizing firm will hire 3 workers.3.This profit maximizing firm will produce 22units of output.4.This firm’s maximum profit equals 60 Now suppose that the wage falls to \$170. You will need to recalculate the values from the table, given this new wage, to answer the questions below..
6.This profit maximizing firm will now produce 28 units of output.7.This firm’s maximum profit now equals 160 .8.Use the following information to answer the next nine questions. Each fill-in-the-blank is worth 3 points.
If your answer is in decimal form, enter it with 2 decimal places. For example, if your answer is .4, enter it into the fill-in-the-blank as .40, or if your answer is 1.4, enter it into the fill-in-the-blank as 1.40. If there are no decimals in your answer, you will simply enter the number; so if your answer is 2, enter 2 with no decimals. Do not use commas.Suppose the economy is characterized as follows:AE = C + I + G + (X-M)C = 800 + .75(Y – T) - 30 (r)I = 600 – 50(r) G = 300X- M = -25T = 80r = 5Price level P is fixed at 1 (P=1)I=600–50(5) = 350.C=800+ .75(Y – 80) - 30 (5)C=800+0.75Y–60–150C=590+0.75YAE = C + I + G + (X-M)AE = 590+0.75Y+350+300-25AE= 0.75Y+1215Equilibrium OutputC=590+0.75YI = 350The equilibrium condition is:Y = C+IReplace C with its expression and I with 350 to get:Y = 590 + 0.75 Y + 350 Y=590+0.75Y+4500.25Y=940 0.25Y=1040Y=3,760 Y=4,160Equilibrium ConsumptionC=590+0.75(3760) C=590+0.75(4,160)
C=3,410 C=3,710Use the information above to get expressions for the consumption function and the AE equation.
• • • 