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Assume that the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned Investment I and net exports X are independent of the level of real GDP and constant at I = 30 and X = 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y = C + I + X. a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if I changes to 10? What does this outcome reveal about the size of the multiplier?
Describe elderly individuals who complain about the increasing cost of their medications have no real complaint.
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
Write an algebraic formula that gives Mr. Midas' demand for bonds. Illustrate what is the sum of his demand for money and his demand for bonds.
Louie produced 300 fire trucks. What action leads to both gains in revenue and loses in revenue for Louie.
Illustrate what did he know about costing to the chain store representative was overlooking. Be sure to describe or chart the shape of Morita's costing.
Winston Churchill once thought that democracy is the nastiest form of government except for all others.
Evalute any one economic model of such imperfect competition, and assess how well it explains the behaviour of real firms, and the results such behaviour might have upon the efficiency of resource allocation.
Show that a specific tax of $3.70/unit generates the same revenue as a 20% ad valorem tax
Explain how are presidential election outcomes related to the performance of the economy. What are the major factors that have affected U.S. household consumption since the recession in 2001.
Supposes a perfectly competitive, increasing-cost industry is initially in long-run equilibrium and demand suddenly increases. Explain how demand change affects price and quantity and who benefits from increased demand.
Determined by the ability to find, attract, keep, develop, and tap into the most talented workforce that can be assembled.
Defend your use of either monetary policy or fiscal policy to do this.
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