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Assume consumer spending is given by the equation C = 275 + 0.8[Y - T], investment spending is equal to 425, government spending is equal to 250, and taxes (T) are equal to 250, while full employment real GDP is equal to 4050. According to the simple Keynesian model, if policymakers seek to close the resulting __________ gap, one option would be to change government spending to ______.
The perfectly competitive market structure is widely regarded as the most desirable way in which a market should operate. Please explain why economists come to this conclusion. Please also use a real world example in your explanation and use a chart/..
Joanna and David are farmers who produce beef and corn. In a year, Joanna can produce 10 tons of beef or 60 bushels of corn, while David can produce 10 tons of beef or 50 bushels of corn. To maximize their total output of beef and corn,
Many legal standards exist that businesses are required to meet in order to ensure product safety. These standards tend to be well defined, and adherence is a generally accepted risk mitigation strategy. Less quantitative risks exist, often in the ar..
Suppose that the inverse demand curve is: p(q) = a − bq, and the cost function is: c(q) = cq. How much consumer surplus is generated when the price is p*? How much producer surplus is generated at p* If the monopolist can only set a linear price (tha..
Suppose re are 300 of young in some period t. n, how many good are paid to government for tax in this period. In period t, how many good can each old person get and consume.
Why are some products elastic and some inelastic? Why do some businesses charge consumers different prices for the goods? ( I.e. airlines,autos) What is comparative Advantage? What role does it play in international trade? Name and explain two source..
Suppose there is an increase in the immigration to the US from around the world (ie. No specific country). Show graphically how this affects the growth rate of both output per capita and total output in the short and the long run. Chart the time path..
There are 20,000 hours of labor for country A. 5 hours of labor are required to produce 1 unit of S, while 4 hours are required to produce 1 unit of T. Find the shape and dimensions of country A's PPF.
HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?
After AT&T was split up by government litigation into a number of different entities (i.e., local phone companies, a long-distance phone company and a phone equipment manufacturer), what was the result on competition in the phone market?
The Harvard Business Review presents a story about Peachtree Healthcare called "Too Far Ahead of the IT Curve?" and some challenges it faces in IT integration. After the case study's formal presentation, four commentators weigh in on what solution..
Consider two economies, A and B. Both economies have the same population, supply of fiat money, and endowments. In each economy, the number of young people born in each period is constant at N, and the supply of fiat money is constant at M. Will ther..
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