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Consider an economy that is operating at full-employment level GDP. Assuming the MPC is 0.90, predict the effect on the economy of a $50 billion increase in government spending balanced by a $50 billion increase in taxes.
Your white paper should be no more than 400 words in length and should explain why you feel the board should add this topic to an upcoming retreat agenda. You want to impres
Given how resources are currently allocated, the Lexington police department can use a marginal policeman to prevent murders, in which case he will prevent 1 murder/year, or
Suppose a competitive firm produces spaghetti dinners. The market price of a spaghetti dinner is $20. The cost of making the dinners is given by C(Q) = 10Q + (Q2/160). The m
Why don't we say that the public will spend ((0.6+0.2) * 150), or 120, and Y will increase by 600. After all, when we talk about domestic investment, it's not only governmen
Suppose that engineers invented an accurate and reliable means of monitoring and measuring the emissions from individual automobiles throughout the year. What possibilities
Country Y produces 400 units of bananas and 400 units of steel under the same conditions. identify which goods both countries should specialise in producing and the relevant
Assume that a country's production function is Y = AK0.2 L0.8.The ratio of capital to output is 2, the growth rate of output is4% and the depreciation rate of capital is 8%.
All the major stock market indexes posted gains in 2010. The mean one-year return for stocks in the S&P 500, a group of 500 very large companies, was 12.8%. The mean one-yea
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