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Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
What are the positive consequences of preventing the offshoring of U.S service sector jobs,what are the negative consequences? Do these consequences change with the passege of time?
For automobiles BWC sells chrome wheels for automobiles. At a price of $600 per set, they sold about 900 sets per month. Illustrate what is the arc price elasticity for this product.
Answer the following Multiple choice questions.
Under current law, most Social Security recipients do not pay federal or state income taxes on their Social Security benefits. Suppose the government proposes to tax these benefits at the same rate as other types of income.
Describe situations and organizational variables that impact employee morale and explain, using examples, the impact of individual perception on morale.
What happens to the real interest rate, output, consumption, and investment in the short run (in which the price level is fixed)? What happens in the long run to the real interest rate, consumption, investment, and the price level?
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.
Explain how should we expect this phoenomenon affect the US economy at the macro-level, short run and long run.
What is the short-run equilibrium, real GDP and price level and does Japan have an inflationary gap or a recessionary gap? What fiscal policy can be used to correct this gap?
Illustrate what are the 2 policy options used to influence the economy
The average price/gallon of gass in July over the past 4 years was $2.74, $3.65, $3.45, and $3.63. Use linear regression to predict the price of gas the following year? How would I set up this problem? Do I use years as my x variable?
What is the present worth of a $50,000 municipal bond that has aninterest rate of 4 percent per year, payable quarterly? Thebond matures in 15yrs , and the market interest rate is 8 percentper year, compounded quarterly.
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