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Assume that a hypothetical economy with an MPC of 0.75 is experiencing a severe recession.
1. By how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion?
2. 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.
3. Increase spending by $ billion and increase taxes by $ billion.
Discuss how does the existence of money decrease the expenses of making transactions, relative to a society based entirely on barter?
2.The demand for a luxury good whose purchase would exhaust a big portion of one's income is: a.perfectly price inelastic b.perfectly price elastic c.relatively price inelastic d. relatively price elastic
Computer software utilizes skilled labor relatively intensively.If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U...
Suppose the wage rates of workers are based on the expected price level. If there is an unexpected increase in AD, it will cause the actual price level to increase. Then workers should raise their expected price level and negotiate a higher wage r..
Identify the extent of safety issues in Canadian hospital care. Describe strategies that might be put in place to improve safety?
Compute the growth rate of the dividend, g. (You can either compute the ROE*plowback ratio or compute the annual growth rate of dividends) e) Based on this information, what should the price of the stock be today using the constant-growth dividend d..
Compare the two graphs for GNP for Techistan and Growthistan. What is the difference in the final value of GNP for each country and Plot the growth rate for Techistan and Growthistan on one plot.
The monopolist charges a single price for output, how much will he produce, what price will he charge, and what profit will he earn?
Assume that a profit maximizing monopolist faces an inverse demand function give by p(.), where p'(y),0, and a total cost function given by c(y), where c'(y)>0. Suppose the government wishes to combat the undesirable allocational effects of a mono..
If the price of the imported TV sets was $300.00 in the US.At the beginning of the year, how much would you expect the price of the same imported TV to be in the US at the end of the year.
Briefly summarize your views on whether the total expenditures for health care in the United States are too high. Provide your rationale, including the criteria you are using for your assessment.
Some states have had laws restricting the sale of most goods on Sunday.oppose such laws because they find Sunday afternoon a convenient time to shop.
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