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The economy is in a recessionary trend. Current GDP is $14.5 trillion And full-employment GDP needs to be $15 trillion. Use the AD/AS model to explain and show the current economic situation. Then suggest a fiscal approach to solve the current economic situation without adding any more debt. The current MPC = .80.
What desire to purchase does not vary with time. Ignore the time value of money and compute the optimal pricing scheme of the iPhone.
Illustrate what was the value of the government expenditure multiplier. Suppose that investment declined by $40 to a level of $60. What will be the new level of equilibrium income.
During course of twentieth century, average workweek in United States has gotten shorter and Americans have enjoyed greater amounts of leisure time. How has this development affected potential GDP and labour productivity.
llustrate what increase in G is necessary to achieve target output in domestic economy. Illustrate what would be increase in G and T needed if government wanted to keep a balanced budget.
How does subsidy affect consumer surplus, producer surplus, tax revenue and total surplus. Does a subsidy lead to a deadweight loss.
Does built in stability mean assume that non-discretionary changes will take place automatically, provide tax rates and systems in a place.
How will firms react to rising output price levels? What reactions can they expect from their employees and suppliers over time?
Business firm that holds a global monopoly on a particular product but is currently selling the product only in its domestic market where its profits are substantial.
Enlighten the budgetary challenges state governments would face if the economy were to go into a recession also the unemployment rate were to increase.
The game ends when the stack runs out or one of the players takes two notes (whichever comes first). Both players keep illustrate what they have taken to that point.
Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, illustrate what will GDP be equal to next year.
Illustrate how do you think this would affect household spending on goods and services.
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