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Q. Assume that Country A has a population of 500000 moreover only produces one good car. Country A produced 100,000 cars every year. The people in Country A procure of 90000 cars although there are not enough cars to fulfill all demand. They make a decision to import 50000 extra. The government buys 25,000 cars for its police force also 10000 cars are purchased by companies to transport employees to other position to work. It also exports 65000 cars to nearby countries for sale.
In the short run go up if government purchases, what happens to GDP? Show this graphically.
If consumption and government purchases go up, what happens to GDP in the long run? Show this graphically.
Explain how does this relate to Keynesian economics?
Show a point that is impossible for the economy to achieve. Show a point that is feasible but inefficient.
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
How does this policy involve the supply and demand for loan able funds. What occurs to the equilibrium interest rate.
Suppose that the government imposed a $1 tax each time someone used an ATM.
Calculate Max's marginal utility from snorkeling at each number of hours per day. Does Max's marginal utility from snorkeling obey the principle of diminishing marginal utility.
Using the numbers that you calculated above, explain the relationship between the marginal cost and average variable cost.
The unsold computer is carried on XYZ's books as an $800,000 increase in inventory.
What steps can Congress and state legislatures take to alleviate a serious national shortage of skilled providers. Research suggests medical errors have been linked to inadequate staffing.
Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
Elucidate in detail how banks operate. Include a description of how banks generate profits.
Support your answer amid an illustration which shown market equilibrium for chocolate bars which comprise x and y interrupts of the curves and label them accordingly.
Discuss the pros and cons of annuities when compared with other financial instruments and whether they provide a better investment opportunity for some people.
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