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The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment . Therefore this will affect the national account of the current year by:
(a) A decrease in consumption by a 100 million and an increase in investment by 100 million;
(b) A decrease in consumption by 100 million times the multiplier and an equivalent increase in investment;
(c) A decrease in consumption by 100 million times the multiplier and an increase in investment by 100 million; (d) No change at all.
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $70,000 and her store made $140,000 in profits (not counting payment to her top manager). Assuming the c..
In April, eggs cost $2 per dozen, wine costs $1 per bottle, your income is $120, and you buy 50 dozen eggs. In May, eggs cost 50 cents per dozen, wine still costs $1 per bottle, and your income is $60. Is it possible to tell in which month you are ha..
How can price and income elasticity measures be used by businesses to help maximize their sales revenue during an economic downturn?
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According to the Keynesian model, equal increases in government spending and taxes will result in which of the following?
Leila runs a firm in a perfectly competitive market with many other firms. Her short-run cost function is given by C(q) = q2 + 25q + 144 such that MC(q) = 2q + 25. Answer the following questions. How much is Leila’s fixed cost of running the firm? If..
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n the short run, a firm's total costs of producing the hundredth unit of output equal $10,000. If it produces one more unit, its total costs will increase to $10,150. What is marginal cost of the 101st unit of output.
why do points on a utility possibility curve represent efficient allocations of resources? why must the utility
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