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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:
What does it mean that marginal product of capital is decreasing? Show the marginal products are diminishing in the cobb-douglas case. Determination of steady state capital pe
Discuss networking, and its relation to prospecting for clients. How can it be useful? What resources would you research to find the potential clients you need to sell your pr
Introduce the Dream Act. Background information/details surrounding the Dream Act. detailed discussion of opposing positions (why some people against the Dream Act.). provide
You may be aware that there are three types of profit: accounting profit, economic profit, and normal profit. The difference between the total revenue and the sum of the expli
Land is purchased for $75,000. It is agreed for the land to be paid for over a 5 year period with annual payments and using 12% annual compound interest rate. Each payment is
Based on Figure 1 if the Mexcian government imposes a per-unit tariff of $2.5 on calculators, the total quantity of calculators produced by Mexicans producers at equilibrium w
Based on this example, discuss and defend whether or not big countries such as the United States should be worried about what is happening in small countries such as Greece.
The Equation of Exchange is given as MV = PY , where M= the nominal money supply, V= the velocity of money, P= the price level and Y=real GDP. What is the Monetarists’ argumen
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