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Suppose C=50+0.8Y I=70 G=200 TR=100 t=0.2.
a) Calculate the multiplier and the level of equilibrium income
b) calculating the budget surplus (SP)
c) Assume that t rises to 0.25. What's the new equilibrium income and the new multiplier?
d) Calculate the variation of the budget surplus, would the variation of the surplus be higher or lower if c = 0.9 instead of 0.8.
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A firm with costs C(Q) = 1,000 + 60Q + 0.1Q2 is able to price-discriminate-What would happen if it were forced to charge all its customers the same price?
If the price changes above occurred for all goods across the economy during the four year period, elucidate how nominal GDP and real GDP would differ.
Compute the long-run impact of a permanent rise in money supply versus a permanent tax cut.
Some games of strategy are co-operative. One example is deciding which side of road to drive on. It does not matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.
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You are given the following information concerning Freedonia, a legendary country, Determine the marginal propensity to consume in Freedonia, and what is the marginal prosperity to save?
How does the Federal Reserve increase or decrease the money supply and what might cause the Fed to change the supply?
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