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1. What is the total change in RGDP if government spending increases by $700 million and the marginal propensity to consume (MPC) is 0.55? Show your work.
2. How much should the government change spending in order to close a $635 million inflationary gap if the MPC is 0.70? Should it increase or decrease spending? How much should it change taxes? Increase or decrease taxes?
Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is making short-run losses. Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people th..
consider a landscaping service market. here landscaping means mowing weeding and trimming etc i.e. a regular
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If the equilibrium real wage remains constant, what happens to the nominal wage when the actual inflation rate exceeds the expected inflation rate?"In the steady state, the government benefits from inflation."
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In our treatment of the Ricardian model We have focused on the case of trade involving only two nations. Assume that there are many nations capable of producing two goods
When the price of a commodity falls by Rs.2 per unit,its quantity demanded increases by 10 units. Its price elasticity of demand is (-)1. Calculate its quantity demanded at the price before change which was Rs.10 per unit. You may change Rupee[In..
in calculating the incremental cost of a particular project how would you treat the possible future costs of a lawsuit
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the industrial revolution which began in the eighteenth century has had an ongoing influence on society as well as the
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