Question 1 options: Suppose the economy is characterized by the following behavioral equations: C is equal to zero point seven five time disposable income. Investment is equal to one hundred fifty. Government expenditure is equal to one hundred fifty. Taxes equal one hundred. Solve for the following equilibrium GDP. (number answer) b. Disposable income. (number answer) c. consumption spending. (number answer) d. Personal savings. (number answer) (Method doesn't matter here. Same answer either way) e. government savings. (number

answer; ///blank(1) 75%; blank(2) 40%;

answer about 4-5 percent of the labor force is unemployed;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.