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Suppose that autonomous consumption increases but that, unlike the situation in the simple Keynesian model of this chapter, some of this autonomous consumption increase is spent on imports (say an amount equal to MPM times the autonomous consumption increase) in the “first round” of the multiplier process. What would this mean for the size of the open-economy multiplier in comparison to the open-economy multiplier in the text?
What is true about a market in which there is a horizontal supply curve - What is the opportunity cost of 1 loaf of bread in terms of gallons of milk?
Kermit is considering purchasing a new computer system. The purchase price is $100,000. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compounded annually. The loan is to be repaid using equal annual payment..
Why do most economists worry about the US current deficit? Why does globalization sets constraints on governments' capacity to raise the revenues?
an economist might say that collage and universatys "produce" education, using facilty members and students as inputs. According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one..
Illustrate what factors will increase or decrease the level of international capital mobility between one nation and the rest of the world.
What is expansionary monetary policy? Why does expansionary monetary policy have an expansionary effect on the economy (that is, why does it cause aggregate demand to increase)? Please explain.
Compute the new macro equilibrium under the assumption that the central bank does not respond to this shock and explain how the central bank could choose to validate this shock. Alter the AD curve to build this "validation" into the model and comput..
Required help using economic theory and applying to real world situations and current events.
Illustrate what were some of the major contributing factors and how did they combine to cause the recession. How were you affected by it.
suppose that in 1984 the total output in a single-good economy was 10000 buckets of chicken and the price of each
1. For each of the following economic conditions, place an X in the table to indicate the appropriate range in the Aggregate Supply Curve
Unemployment is one of the major concerns that people have in today's economy, since losing one's job can be one of the most devastating events a person can experience. But what do the numbers actually mean. What is the actual state of the econ..
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