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MPC = 0.75. Calculate the spending multiplier and the tax multiplier
Spending multiplier = 2.5. Calculate the MPC and the tax multiplier
Tax multiplier = 4.0. Calculate the MPC and the spending multiplier
The president of the United States explains that it is necessary to impose trade restrictions, such as a tariff, on the steel-rod industry to protect workers in the domestic steel-rod industry. The president claims that without trade protection, ther..
Suppose that every additional 3 percentage points in the investment (I / GDP) booat GDP growth by 1 percentage point. Assume also that all investment must be financed with consumer saving. The economy is now characterized by
Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.
if thailand had a job finding rate of 4 and a steady-state natural rate of unemployment of 10 what would the job
Illustrate what do they mean efficienty level of output. If the government were to build the bridge, what price should it charge.
Explain how many units of pork will the government be forced to buy to keep the price at $2.25. How much will the government spend in total.
The saving in manufacturing costs, owing to the special tools, is estimated to be $150,000 per year for 5 years. Assume MACRS depreciation for the special tools and a 39% income tax rate. What is the after-tax payback period for this investment?
Explain why most market labor supply curves slope upward and to the right, even though individual labor supply curves are presumed to be backward-bending. How does the height of a market labor supply curve relate to the concept of opportunity cost?
Assume an economy with an aggregate production function of the form Y = 1.5K. If the nation’s population grows at 5%, the rate of depreciation is 3%, and the savings rate is 8%, what is the steady-state output per capita level?
Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald's, etc.). What motivated the producers of all the individual products in the store to make them and offer them for sale
When the farmer makes this discovery, what happens to the opportunity cost of wheat, measured in bushels of corn?
There is a direct relationship between a growing real GDP also rising pollution. Growth provides an economic environment favorable to education also self-fulfillment.
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