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Q. Assume that economy starts at equilibrium and mpc = 0.8. Illustrate what would be effect of a $500 increase in taxes once all rounds of multiplier process are complete?
Q. a monopolist faces a demand curve given by: p=105-3q, where p is cost of good and q is quantity demanded. Marginal cost of production is constant and is equal to $15. re are no fixed costs of production
Do you think such a policy will increase demand for electronic appliances.
The interest rate is 25% (0.25), and there is no inflation. Illustrate what is Mandy's optimal consumption in period 1.
Illustrate what is unusual about this market. Give an example of a good or service to might be characterized by this unusual market attribute.
Fed's policies both in terms of the positive also negative consequences of such policies also in relation to the Keynesian also classical theories.
Explain how is the cross elasticity theory used to empirically define economic markets.
What is the deadweight loss if buyers, instead of vendors, are required to pay the tax of $4 for each unit of the good sold.
Illustrate what factors might explain why the $A went so low when the Global financial crisis hit the world economy in late 2008?
For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.
Assume the manager asks for volunteers to postpone their tour by offering increasing amounts of cash compensation until only four people want to see the caves that day.
Explain how businesses create value by integrating the production and distribution of goods, services, and information.
Estimate the macroeconomic implications and microeconomic consequences of a monopolistically competitive firm or an oligopoly firm filing for bankruptcy.
Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.
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