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Continue to assume that C = 400 + 0.75 (Y - 100), I = 100, and NX = 100. But the government now increases spending from 100 to 150, how much is the new Y in the goods market equilibrium?
What happens to his consumption of Y? Calculate the coefficient of price elasticity and of cross price elasticity. Also draw the demand curves for X and Y, noting the equilibrium points for this consumer before and after the price change in X.
Many states give companies with an investment tax credit that effectively decrease the value of capital. In theory these credits are designed to stimulate new investment and thus create jobs.
Over the last 30 years in the United States, the real price of a college education (i.e., after adjusting for inflation) has increased by almost 70 percent. Over the same period, an increasing number of high school graduates
As compared to high Japanese inflation may result in an increase in the supply of yen for sale
Illustrate what price per ride must the public transportation authority charge to eliminate the deficit if it cannot reduce costs.
Assume that economy starts at equilibrium and the mpc = 0.75. Find the effect of a $300 increase in government spending once all the rounds of multiplier process are complete?
What are the reasons why the colonized region in latin america remained underdeveloped? How/Why was the Great Depression considered an "imported crisis" for Latin America? Under ISI policies, Latin America became one of the most protectionist regio..
In 2005 the US was close to full employment, but many observers and economists were worried about its trade deficit, which was over $700 billion per year. Suppose macroeconomic policymakers wanted to maintain the level of real GDP
Your company is considering a price reduction on a product which currently sells for the price of $5.00.The price elasticity for the product is roughly equal to -2.3 over the range being considered for the price change.
According to the table above, if the wage rate is $500 and the price of output is $5, how many workers should the company hire?
Illustrate the following situation by using supply and demand curve. a. The federal government "supports" the price of wheat by paying farmers not to plant wheat on some of their land. What will happen to the equilibrium price and the equilibrium ..
Describe the position of India with respect to the comparative advantage it holds in gems and jewellery, software services, and petroleum.
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