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(a) Plot crowding out for the following situations on a graph, and explain why you get the results:
(i) Perfectly inelastic ID curve (vertical) & perfectly elastic SS curve (horizontal).
(ii) Perfectly inelastic SS curve (vertical) & perfectly elastic ID curve (horizontal).(b) Under which of the above two scenarios should the government use expansionary fiscal policy to boost the economy during a recession?
Discuss and explain the income and consumption relationship make sure to describe marginal propensity to consume. If you received an extra dollar, how much of it would you spend?
Describe the market equilibrating process and compare the demand for food with demand for Starbuck's coffee. Include academic research to support your ideas.
Some manufacturing companies are moving out of the country in search of cheap labor and the ones at home are not doing as good and some big ones like auto are trying to cope well after coming out of bankruptcy.
For Profit Labs, Inc. (FPL) is a private laboratory that does only routine blood count. With total assets of $8 million last year, FPL took in $3 million in revenue and had expenses of $2 million. The average firms in other industries make a retur..
Calculate the equilibrium price and quantity. Sketch the supply and demand curves on a graph indicating the equilibrium.
Assume the following was overheard at the water cooler: "I think our medical device company should take advantage of economies of scale by increasing our output, thereby spreading out our overhead costs."
Supporter of free market systems discuss that free enterprise leads to more efficient production and better response to changing customers preferences.
Assume that the two firms behave as Cournot Duopolists. Explaining the concept of best response or Creaction function, determine the best response function for each firm. Calculate the profit maximizing output of each firm and the market price.
Discuss the characteristics of monopolistic market in detail. Name five different companies that belongs to this market. Compare and contrast monopolistic competitive market with Oligopoly.
Total explicit costs of using market-supplied resources for Quest Realty- partial income statement from Sizzling Foods
The federal government cuts spending on the purchase of new goods and services by $35 billion at a time when households are not spending 40% of additional income they receive.
Describe the difference between “money market” debt instruments and “capital market” debt instruments, and provide at least 2 examples of each type. Hint: See chapter 2 of the text.
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