Construct an AD/AS model. Label the vertical axis P from 0 to 500 using increments of 100. This corresponds with the implicit or GDP price deflator, 100 is the base year. Label the horizontal axis RGDP from 0 to 6,000 using increments of 1,000. This output line is measured in billions. Now construct an LRAS at 3,000 billion. This is the natural rate of in-come and output or full employment output. This economy is currently experiencing an unexpected decrease in in-ventories. Use the following data to construct AD and SRAS: AD SRAS: AD SRAS
P= 10, RGDP = 6,000 P= 100, RGDP= 2,000
P=400, RGDP = 2,000 P= 300, RGDP = 4,000

Describe the position of equilibrium in this market. Describe, in words and show in the graph, the most likely outcome, overtime, if this market had no external intervention?

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?

Carmen’s beauty salon has estimated monthly financing requirements for the next six months as follows: january $ 9,000 april $ 9,000 february 3,000 may 10,000 march 4,000 june 5,000 short-term financing will be utilized for the next six months. projected annual interest rates are: january 9 % april 16 % february 10 may 12 march 13 june 12 what long-term interest rate would represent a break-even point between using short-term financing and long-term financing?