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Since GDP = C + I + G + Net Exports, it stands to reason that when C and I are low in a recession and net export spending is essentially dependent on foreigners, the only stimulatory policy open to government is via G through changes in its budget.
Do you agree? Justify your answer. what about monetary and fiscal policy can we use them in that situation ?
The following table provides the total input requirements for each of five different total output levels: Q = 1 Q = 2 Q = 3 Q = 4 Q = 5 TECH. K L K L K L K L K L A 2 5 1 10 5 14 6 18 8 20 B 5 2 8 3 11 4 14 5 16 6 a.
Explain why a monopolist, such as Media Cable, faces a downward-sloping demand curve Explain why the marginal revenue from an additional sale is less than the price of the service Suppose Media Cable currently charges $70 for its service. If it lo..
However, when the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides. What were taxicab drivers assuming about the elasticity of demand.
a) Based on these estimates, what is the maximum share price that Happy Times should be willing to pay for Joe's?
A delivery truck costs $30,000 and has a salvage value of $5,500 after 6 years. Maintenance and operating costs are $8,500 for the first year and are expected to increase at 6% per year. What is the equivalent annual cost of owning and operating t..
Prepare a job cost sheet for Job #325 using the information given. Assuming that 80 units were completed, determine the unit product cost.
1. Income is $2.00, the price of soda is $0.25, and the price of chips is $0.50. Construct Adam's budget line. 2. What is the utility maximizing combination of soda and chips Indicate this combination on the budget line.
Suppose market demand is given by Q= -200P + 8,000. What will be the short run equilibrium price quantity combination. Suppose everyone starts writing more research papers and the new market demand is given by Q= -200p +10,000.
If five math SAT scores are randomly selected from the population of women who take test, find the probability that all five of the scores are above 508.
The mayor decides how long each fireworks show will last each year. This year, she has a new plan: each of the 20 town citizens will send in their marginal utility of a minute of fireworks to the mayor who will then compute the optimal amount of fi..
According to the neo-classical theory of wage setting, discrimination should be gradually weeded out of the labour market. Explain why this should be the case according to that theory. Discrimination, however, seems to endure.
From 1950 to 2000, manufacturing employment as a percentage of total employment in the U.S. economy fell from 28 percent to 13 percent. At the same time, manufacturing output experienced slightly more rapid growth
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