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Assume that the MPC=0.6 for every consumer in the economy. You have just received a tax cut of $20000. How this action by the government will affect your spending plans? What would be the total effect on the economy of this action? (Assume that t=0, m=0). What would be the total effect ift =0.2 and m=0.08. Are your answers the same for Problems 7 and 8? Why or why not?
A winery estimates that the demand for its fine Owner's Select, has an income elasticity of 2, where income refers to the income per capita of its customer base.
q1. between the first quarter of 2005 and the fourth quarter of 2006 the cpi increased by 7 percent while the gdp
During the industrial revolution:
Le Crueset is a French restaurant that recently increased the average price of its meals by 4%. As a result, the number of customers dropped by 3%. Based on this information, what is the price elasticity of demand for meals at Le Crueset? How will th..
Take a position on this statement: The media represent realistic images of Arabs. Support your views with one or two reasons and / or examples. (Cite any sources you referenced.) take a position on this statement: The media represent realistic images..
Will it shift to the right or left? Where will the equilibrium be on the LRAS now? What is the correct answer here and why?
Should Banks Make Money on Money? Can the banks make easy profits because the money multiplies? How? Is it fair and efficient? Is the basic structure of banking stable and fair? Could it be different?
Write a well-reasoned argument defending your stance. If deposit insurance were abolished, elucidate how would this change incentive structure facing deposit theory institutions.
Explain the structure of the federal judicial system. What are the responsibilities of each part of the system? Need the response to be at least 200 words
Draw graphs showing a perfectly competitive firm and industry in long-run equilibrium. a. How do you know that the industry is in long run equilibrium? b. Suppose that there is an increase in demand for this product. What will happen to the number of..
Describe "how" producer surplus is measured?
In looking at GDP we see that not all aspects are counted. Do you find that the items like buying a home or a used car should be counted in GDP?
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