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Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high. They would like to increase real aggregate output (RGDP) . She wants to know what policy to pursue to increase RGDP by $2 trillion ($2,000 billion) . The best estimate she ga ve you is the value of MPC = 0.8 . Which of the following policies should you recommend and why? You need to show your work of estimations and explain in words. 4 pts a. Increase government expenditure (G) by $400 billion b. Reduce taxes by $400 billion c. Reduce taxes by $400 billion an d increase govt. expenses by $200 billion d. Increase G by $5 00 billion
q.a computer manufacturer developed the following demand curve.q - 700p 80i - 500s 0.01awhere p is the price of a
Point out which costs in the preceding question are considered "relevant" and which are considered "irrelevant" to a business decision. Explain why.
Explain the “objective theory of jurisdiction.” How does it apply to an organization doing business within a foreign country?
Assume that the dairy industry is initially in a perfectly competitive equilibrium. Assume that, in the long run, the technology is such that average cost is constant at all levels of output. Suppose that producers agree to form an association and be..
Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what ..
Suppose Leonard, Nixon, & Shull Corporation's projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
q. 1. patent systems can be worthwhile if induced innovations are important also if the rewards from patents speed them
demand for a good of an industry is given by the equation pq=100, where p is the price and q is quantity and supply is given by the equation 20+3p=q. find out the equation price and quantity
Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitability.
Which of following claims concerning importance of effects that explain slope of U.S. Aggregate demand curve is correct.
Illustrate at what output level would the monopolist produce. Illustrate at what output level would a perfectly competitive firm produce.
What happens to money supply and interest rates in general if Federal Reserve is a net seller of government bonds.
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