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Assume the economy is in recession and real GDP is below full employment. The marginal propensity to consume (MPC) is 0.50, and the government follows Keynesian economics by using expansionary fiscal policy to increase aggregate demand (total spending). If an in crease of $1,000 billion aggregate demand can restore full employment, the government should:
Why would a country include offshore assembly provisions in its tariff code? Post to the discussion board your 200 word answer, focusing on selecting and organizing your mos
Suppose Mark invests a sum of $100,000 in a new venture. To fund his investment, Mark withdraws $50,000 from a savings account paying 10% per year and uses the proceeds from a
Suppose Shiva has preferences different from those discussed in class, as indicated by the following: If he consumes more milk (M) than bread (B), then he will always be willi
What should be the legal and ethical reaction of the business community for these types of violations? State your opinion as to the impact of conducting business with these co
The government is considering a policy to reduce air pollution by restricting the use of “dirty” fuels by factories. In deciding whether to implement the policy, how, if at al
What do you think of the property of transitivity in choice theory and methodologies of risk assessment. How can we improve the ways we assess risk, or think about choices we
A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the mar
The installed cost of a conventional electric hot water heater is $200. A family of four uses an average of 300 liters of hot water a day, which will require $350 worth of ele
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