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Assume in economy is in recession with a MPC of 0.75 and there is a GDP gap of $100 billion. How much must government spending increase to eliminate the gap? Instead of increasing government spending by the amount that you calculated what would be the effect of the government cutting taxes by this amount?
Which of the following arguments do you support? Why? low voter turnout is not an indicator of trouble, as it signifies satisfaction with the status quo
A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant’s estimate of total costs to be higher or lower than an economists estimate? Explain.
Brenda’s Bar and Grill has total assets of $16.0 million, of which $10.0 million are current assets. Cash makes up 10 percent of the current assets and accounts receivable makes up another 40 percent of current assets. What is the balance of inventor..
Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?
Illustrate what are characteristics of large firms conducting both B2B and B2C transactions that require more robust and capable electronic commerce systems.
Occupational segregation is more likely to explain the:
In a two year setting Rod has earnings of $8000 this year and earnings of $25,000 next year. He can borrow or lend at an interest rate of 25%. Draw his budget line including endpoints. What is the slope of the budget line? What is the interpretation ..
Jim spends all his income on apartment rent, food, clothing, and vacations. He gets a pay raise from $3,000 a month to $4,000 a month. At the same time, airfares and other vacation-related expenses increase by 50 percent. How has Jim’s budget in term..
Define the five types of “production effects” of economic growth in a country and the five types of “consumption effects” of the economic growth. Then define the types of possible “overall” or “net” effects of the country’s growth on the relative imp..
The price of a product is $5 and the quantity demanded is 250 units/week. When the price is increased to $7 the quantity demanded falls to 125. Calculate the percent change in price and percent change in quantity demanded. Calculate the price elastic..
Maisha spends all her income on good X and good Y. As the price of good X increases while the price of the price of good Y remains fixed, Maisha’s price-consumption curve is horizontal. Let the price of good Y be $1 per unit and Maish’s income be M. ..
You are in the market for a stock that is currently selling at $20. You intend to sell the stock immediately after you receive a dividend payment of 20 cents per share. Moreover you believe that you can sell the stock at $21 per share. If bonds are c..
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