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1. Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 8.8%, and the MPC is 0.75.
a) How much money should the government spend to eliminate this GDP loss?
b) Calculate the tax cut needed to eliminate this GDP loss.
2. Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $4,250 as a result of increase in income from $40,000 to $45,000.
3. Assume that initially G is $300 and equilibrium real GDP is $5000. If the multiplier is 5, what would be the new equilibrium level of GDP if Government expenditures increase to $500?
4. List three reasons why the aggregate demand curve is negatively sloped (downward sloping).
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Write a 700- to 1,050-word paper explaining factors that affect supply and demand. Include the following Explain factors that could cause possible changes in supply and demand.
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Effects of the financial crisis on selected countries - Leitfaden zum Anfertigen der wissenschaftlichen Arbeiten Bachelor Thesis,
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Determine algebraically the equilibrium price and quantity? Suppose that the price to be fixed at $110. Determine algebraically the surplus or shortage that would result? Discuss the differences in elasticity of supply and elasticity of demand?
Suppose your nominal income in 1995 was $24,000. Suppose, too, that the Consumer Price Index for 2012 was 2.5 and that the base year for this index was 1995. How much nominal income would you need in 2012 in order to match the spending power of your ..
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Illustrate the effect of captial formation by comparing the production possibilty curves, at the present time and ten years in the future, for two economies.
Five ice cream vendors take up positions along a beach of length one. You may take it as given that there is a Nash equilibrium with two vendors at some point x, one vendor at 1/2, and two vendors at point 1 x. Find x, and justify your answer.
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