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Assume that Costa Rica has leakages from its macro economy so that only 80% of every dollar spent there is spent again there.
Assume also that Costa Rica has a potential GDP of $900 billion and an actual (equlibrium) GDP of only $750 billion.
What is the recessionary spending gap, or the proper amount of spending "medicine" to inject to achieve full employment under these conditions?
The price in a market is dominated by two firms is affected by the quantities supplied by both firms, Q1 and Q2: P = 100 - (Q1 + Q2). The marginal cost for the two firms is identical and constant and equal to 25. Derive the equations for total revenu..
Although firm expects the order to be of 6 units, determine the minimum average cost of the firm with these different order sizes.
Which of the following represents investment, in the sense that economists use the word?
How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
A local car dealer is advertising a standard 24-month lease of $1,150 per month for its sports car. The standard lease requires a down payment of $4,500, plus a $1,000 refundable initial deposit now. The first lease payment is due at the end of month..
what is the social optimum quantity and price. If the government uses a tax to get producers to internalize the externality what is the net price recieved by producers
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
In what way (or ways) is the current Knowledge Revolution a child of the Industrial Revolution? Is this a new revolution or simply an extension of the 18th-century revolution? Given the history, is it perhaps more appropriate to call the current revo..
Calculate Marginal Revenue from demand if the marginal propensity to save is 0.05, how large is the multiplier.
Also during that first year, the cookie business incurred costs that required outlays of money amounting to $9,000. What was Zach's economic profit (loss) for the year.
the government limits the amount of land that can be devoted to tobacco production. Are these two programs at odds with the goal of reducing cigarette consumption
Find out the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level.
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