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The hypothetical economy of Betania is in short-run macro equilibrium with RGDP equal to $5 trillion. Assume the MPC in this economy is .9. Suppose the government in Betania increases its purchases by $100 billion and finances this increase in spending by raising taxes by $100 billion.
Using an AS/AD graph, show the impact of this fiscal policy.
Explain what effects (if any) this equal increase in government purchase and taxes would have on price level and employment
Calculate the effect (if any) this equal increase in government purchases and taxes would have on RGDP.
A couple operate a pet sitting service on the side. They want to add a daily service of a photo placed online for pet owners who are travelling. The required equipment is expected to cost $636 to purchase and $16 per month to operate. Revenues are ex..
q.suppose that there is a unit mass of consumers who are uniformly distributed on the segment01. two firms are located
The current government deficit: include how current fiscal policy has affected the deficit, and how the country should deal with any problems you identified?
Elucidate why the boundaries of the firms that group members currently work for are dawn at their current limits, and consider whether there are opportunities to increase the returns generated.
Explain why you would expect to see active secondary markets where shippers trade capacity and why it is efficient to allow such markets.
If the total cost of 20 units of a product is $20, and the total cost of 21 units is $21, then from 20 to 21 units of product the: Marginal cost is decreasing. Marginal cost equals average variable cost. Average total cost equals average variable cos..
Will the gains from trade be larger or smaller if one of the factors is not mobile in production? Why? Demonstrate your conclusion graphically. Is it true that if neither factor is mobile the country will receive no gains from trade? Explain.
According to tournament theory:
Karen Dynan, a former Federal Reserve economist, was quoted as stating: The size of the Fed’s balance sheet, which has more than doubled since the financial crisis of 2008, and the large amount of reserves sitting at the Fed has made officials at the..
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $2..
Assuming that all buyers received the credit, estimate the own cost elasticity of demand as well as well as own cost elasticity of supply.
In the long run, an economy's level of output
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