Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 3, Problem 10PA
(a)
To determine
Private saving,
(b)
To determine
The equilibrium interest rate.
(c)
To determine
Private saving, public saving, and national saving.
(d)
To determine
New equilibrium interest rate.
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Suppose we only produce donuts in our economy, and we produce 500 donuts in a year. Each donut sells for $3, and we have $100 in the economy. What is the value of total production (or total spending) in this economy?
Group of answer choices
$100
$300
$500
$1500
Josel owns two fields: Green
4. Joint PPF and quantity restriction
field and Blue field. He can produce corn and wheat. Green field has 80 acres, and it
takes 10 acres to produce 1 bushel of corn and 20 acres to produce 1 bushel of wheat.
Blue field has 100 acres, and it takes 20 acres to produce 1 bushel of corn and 10
acres to produce 1 bushel of wheat. Suppose that the government imposes a quantity
restriction on only corn. Specifically,
A quantity restriction of 4 bushels of corn in Green field. That is, Green field is
allowed to produce at most 4 bushels of corn, and
A quantity restriction of 2 bushels of corn in Blue field. That is, Blue field is
allowed to produce at most 2 bushels of corn.
(a)
Sketch the joint PPF. Clearly label your graph (i.e., indicate values
for slopes, intercept(s), endpoint (s), and kink(s)).
Suppose the production function in an economy is Y = K0.SL05, where K is the amount of capital and L is the amount of labor.
The economy begins with 25 units of capital and 25 units of labor.
Round answers to two places after the decimal when necessary.
a. How much output does the economy produce?
units of output
Chapter 3 Solutions
Macroeconomics
Ch. 3 - Prob. 1QQCh. 3 - Prob. 2QQCh. 3 - Prob. 3QQCh. 3 - Prob. 4QQCh. 3 - Prob. 5QQCh. 3 - Prob. 6QQCh. 3 - Prob. 1QRCh. 3 - Prob. 2QRCh. 3 - Prob. 3QRCh. 3 - Prob. 4QR
Ch. 3 - Prob. 5QRCh. 3 - Prob. 6QRCh. 3 - Prob. 7QRCh. 3 - Prob. 8QRCh. 3 - Prob. 1PACh. 3 - Prob. 2PACh. 3 - Prob. 3PACh. 3 - Prob. 4PACh. 3 - Prob. 5PACh. 3 - Prob. 6PACh. 3 - Prob. 7PACh. 3 - Prob. 8PACh. 3 - Prob. 9PACh. 3 - Prob. 10PACh. 3 - Prob. 11PACh. 3 - Prob. 12PACh. 3 - Prob. 13PACh. 3 - Prob. 14PA
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