a. You decide to head over to "Pizza na wypasie". They are located not that far from SGH and they offer double cheese as standard. The standard pizza cost PLN 6 and one liter of beer just 8. Sketch your budget constraint, being certain to label any relevant intercepts. (assume that you can purchase fractions of pizza and beer in different sized glasses.)

b. Let's say that your utility for a bundle of pizza (P) and beer (B) is given by the following function:

U(P,B) = 30*(P^(1/7))*B^(1-1/7) for 7>0

i. Show your marginal utility of pizza...

ii. ... and your marginal utility of beer:

c. What combination of pizza and beer maximizes your utility given your budget constraint? Add this optimal point and the indifference curve passing through it to your graph of the budget constraint.

d. You arrive to the restaurant and you realize that there is an "All-you-can eat buffet" for just PLN 2 Sketch your new budget constraint. (Hint: your possible consumption bundles still consist of beers and pizzas.)

e. (e) Explain in words what happens to the number of pizzas and beers in your optimal bundle, given the utility function in part (b).

131.What is the formula for calculating the value of money in terms of its purchasing power? 132. What is the formula for the Keynesian spending multiplier? 133. What is the formula for the money multiplier? 134. What is the formula for GDP from an expenditure View? 135. What is the formula for calculating real GDP. Bonus Question (5 pts.) 1. Discuss monetary and scal policy and its application to the current state of the US economy given the pandemic. Question 1 1 pts Both Keynesian and Neoclassical theories deal with: O Capitalist cycles O Humanism O Structuralism O Overdetermination Question 2 1 pts The theory(ies) that holds the economy can be viewed like a machine is (are): O Neoclassical Keynesian O Neoclassical and Keynesian O Marxism and Neoclassical Question 3 1 pts The self-correcting mechanism of the capitalist system is: O Overdetermination O Over production The competitive market O Surplus valueQuestion 3 - You need to use the formula from the Keynesian Cross Model . Y =C+I+G+ NX . If C = cY, I = I. + kY, NX = 0; c = constant; k = constant Y* = [Co+lo+G] 1-[c(1-T)+k]) general form using Keynesian Cross Model A) If Co = 0; c = .6; k = .3; 1 = 0; 10 = 20 and G = 45 what is the numerical value of Y in equilibrium? B) If everything else stays the same from part A but G takes a new value i. e. G = 90 what is the new Y?The key difference between Keynesian and Classical economists is Question 9 options: Keynesians believe that monetary and fiscal policies are detrimental to the economy. bj Classical economists propose a "menu cost" model. Keynesians favour a role for government in managing the economy. Keynesians believe wages and prices are perfectly flexible