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Assume that a hypothetical economy with an MPC of .8 is experiencing severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion? How large a tax cut would be needed to achieve the same increase in aggregate demand? Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Construct a market basket using a graph. calculate the price index based on the basket. Decide quantity and estimate current prices for each product.
Hypothesize the basic short-run also long-run behaviors of the model in the industry you have chosen in a "marketplace economy."
suppose that an economy consumes all salary income and saves all capital income. Describe if the factors of production earn their marginal product.
where P represents price and A is the number of weekly advertisements. Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero,
Compute the profit-maximizing output for the price leader. Illustrate what the market price is given the price leader's output in (c). Elucidate how much does each competitive firm produce.
A large school of sharks is reportedly seen by beach-goers at the beaches of Melbourne.
Does the aggregate demand-aggregate supply model support Bernanke's thesis.
If the demand for gold residue high explain what would happen to the price in excess of time.
illustrate what would take place in the US marketplace for loan able funds. In particular to US interest rate, savings also investment.
The subsequent cell-phone offer by Sprint is typical of Illustrate what one can get on a cell phone plan. Illustrate what is marginal cost.
Explain why purchasing power parity measures of income levels tend to show smaller differences between poor and rich country
Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is.
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