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Suppose that the present level of income in the economy is $700 billion. It is determined that in order to decrease the unemployment rate to the desired level, it will be essential to increase the level of aggregate income to $760 billion. Assume that S = -25 + .2Yd. How much would taxes have to be cut in order to accomplish the desired outcome?
Explain cost output relationship with reference to: a. Total fixed cost and output b. Total variable cost and output
Real Rigidities in the Labour Market New Keynesian theories of the labour market help in explaining the existence of involuntary unemployment. The theories also attempt to
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Equilibrium Income In this model, aggregate desired expenditure has three components: Consumption, Investment and Government Expenditure:
williamson model and managerial discretion about its objective and statement of problem
explain critically growth maximisation model of morris ?
Internal and External factors of business operation External factors : A firm can't exercise any control over these factors. Thepolicies, plans and programmes of the firm m
No demand forecasting method is 100% accurate. Collective forecasts develop precision and reduce the probability of huge mistakes. Methods which relay on Qualitative Assessmen
Short-Term Policies Deflation is a policy of reducing expenditure with the intention of curing a deficit by reducing the demand for imports. This reduction of expenditure m
Demerits of direct taxes a. Heavy direct taxation, especially when closely linked to current earnings, can act as a serious check to productivity by encouraging absenteeism
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