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Suppose the GDP is $40 billion below its potential level. It is expected that next-period GDP will be $20 billion below potential and that two periods from now it will be back at its potential level. You are told that the multiplier for government spending is 2 and that effects of the increased government spending are immediate. What policy actions can e taken to put GDP back on target each period?
Describe the free trade equilibrium. Then compute and graph the following effects of an import quota that limits imports to 100 bags.
Use the algebraic form of the aggregate demand curve to find the level of GDP that occurs when the money supply is $900 billion and government spending is $1200 billion. Repeat all the previous calculations if government spending increased to $1300 b..
get an answer from tutors to this homework question nowassume which the gross national debt initially is equal to 3
Assume that Consumption decreases by $25 million, Investment increases by $10 million, Government Purchases increase by $60 million, Exports decrease by $30 million and Imports decrease by $55 million. What is the net change in GDP in $million?
Explain what is Nurd's equilibrium level of income. Explain what is likely to happen in the coming months if the government takes no action.
Express Illustrate what will happen also why to the firm's average fixed costs, marginal costs, average costs also profits as the firm makes its choices.
Consider a perfectly competitive market where demand is given by P=84.20-2.15Q and supply is given by P=12.78+1.20Q. Calculate the equilibrium quantity and price.
If you drive 20,000 miles per year and the price of gasoline for this analysis is assumed to be $4.00 per gallon, which model should you purchase?
How much could the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
Illustrate what does this imply about the effectiveness of monetary and fiscal policy to reduce the unemployment rate.
Contrast comparative and absolute advantage. Is it possible for a country to have a comparative advantage in producing a good without also having an absolute advantage? Explain.
each job this auto body repair shop handles is a special order job. What type of costing method would this auto body repair shop most likely use.
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