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Q1. If the AD shortfall is $800 billion and the MPC is 0.8,
a) Explain how large is the desired fiscal stimulus?
b) Explain how large an income tax cut is needed?
c) Alternatively, Explain how more more government spending would achieve the target?
Q2. Which characteristic of competitive markets permits society to answer the illustrate what to create question efficiently?
Q3. The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develop new products or lower-cost production methods? Elucidate.
Distinguish between the resources market and the product market in the circular flow model.
Which of the following market transactions of final goods and services are excluded from the computation of U.S GDP
How to calculate the elasticity coefficient between each of the seven prices and indicate whether the character of demand is Elastic.
Explain your answer what would happen to the value of gold if public discovered that it could simply be made at home from inexpensive materials.
What What marketing strategies should Radiance pursue in the next five years? Explain why the strategies you select would best fit the organization. in the next five years? Explain why the strategies you select would best fit the organization.
Elucidate that contract align the incentives of the new vice president with the goals of the owners.
What is the rationale behind the choice of target or acquirer, if appropriate for your opening bid and your overall bidding strategy.
How do the GDP per capita change after accounting for price indices. Why is it important to use price index adjustments.
Why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic.
Global studios are thinking of producing a mega film, Aqua world, which could be a mega hit or a mega flop.
What are the informing factors of global interdependence, including the economic factors, political dynamics and cultural differences.
A second firm is considering entering this market. What variety should it offer. What prices will the firms charge.
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