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Governments routinely alter their spending patterns to impact the economy, particularly as they relate to GDP growth and unemployment levels. Explain what effect an expansionary fiscal policy would have on the price level and real GDP starting from full employment equilibrium.
Suppose that in an economy a $40m increase in consumption leads a $200m increase in national income. Calculate the value of this economy's marginal propensity of save.
VMIC Corporation has asked you to look at the following data. The interest rate is 10 percent.
Deep global recession might trigger changes in expending from imported items to domestically manufactured items. What are at least two policies that governments might implement to increase expending on domestic items.
Do you agree that the only way to raise equilibrium quantity is to raise supply and demand together? Why agree or why not agree?
Find out the optimal price and quantity with standard pricing. Which is the per-customer profit for the gym? What is the consumer surplus?
How do you know that the firm represented in the graph above is a purely competitive firm and to maximize profits, this firm will produce at what output level and explain why this MR=MC position is the profit-maximizing position for any firm.
Discuss, using examples and academic references, the statement that perfect competition gives an optimal allocation of resources but that the existence of scale economies may make perfect competition impossible.
Stock registers an unexpected price decrease, Evaluate the value of your delta-hedged portfolio.
What incentives does a capitates physician have to keep his patients happy? What incentive does an FFS physician have?
Could you identify and describe the concepts of scarcity and opportunity costs. Also, explain the laws of supply and demand and how they are related to the concepts of scarcity and opportunity costs in decision-making.
Elasticity of demand for each of the following showing all calculations and
The steady increase in demand for home computers has resulted in the massive increase in demand for web access, yet, the price of access has been steadily declining.
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