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Suppose that government purchases decrease by $10 billion, with other factors held constant. Calculate the change in the level of real GDP demanded for each of the following values of the MPC. Then calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion.0.90.80.750.6
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
Describe the concept of economics of scale and how long run costs curves shape the economic structure of industries.
Explain why may a government solution to a marketplace failure worsen the market failure.
Illustrate what would happen to the dollar-yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the United States.
Assume the economy is slumping into recession and needs a fiscal policy boost.
Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.
Estimate the own price-elasticity of demand.
Name them six problems that complicate fiscal policy for policymakers. Please include examples and explanations.
Dell Electronics just stumbled upon a new supplier of personal computer (PC) circuitry in Costa Rica that can supply standardized computer inputs at $70 per PC.
Point out how each of the following would shift the 1) average-variable-cost curve, 2) average-fixed-cost curve, and 3) average-total-cost curve. Mention two types of businesses that their costs are mostly variable costs, and list 2 types of busin..
Suppose that the Japanese government relaxes its controls on imports by Japanese companies. Other things being equal, how should this affect the.
B3 Oraganization is a manufacturing firm that uses job order costing. The company applies overhead to jobs using a predetermined overhead rate based on machine-hours.
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