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Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession.
Instructions: In part a, round your answers to 2 decimal places. Enter positive numbers. In part b, enter your answers as whole numbers.
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? $ billion.
How large a tax cut would be needed to achieve the same increase in aggregate demand? $ billion.
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Increase spending by $ billion.
Increase taxes by $ billion.
Draw a set of short run production curves including the total, average and marginal product curves. Identify on the graph the range of labor input that would be most likely relevant if you faced varying wage levels from zero up until you would cease ..
Fractional relationships between variables are not permitted in the standard form of a linear program.A cycle is an up and down movement in demand that repeats itself in less than 1 year.
What institutions are prerequisite for economic growth? What is the role of rule of law in economic development?
q.a researcher predictable that cost elasticity of demand for automobiles in the united states us is -1.2 while the
England can produce 50 units of wine if it produces no cloth, and 100 units of cloth if it produces no wine. Using this information, we can conclude that.
q.assume that country a has a population of 500000 moreover only produces one good car. country a produced 100000 cars
Describe the process in the money market (demand and supply of/for money) by which the interest rate reaches its equilibrium value if it starts above equilibrium. (Principles of Macroeconomics)
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20,000 bottles of wine were sold every week at a price of $4 per bottle. After the tax, 13,000 bottles of wine are sold every week; consumers pay $5 per bottle, ..
assume the tax multiplier is estimated to be 1.5 and the aggregate supply curve has its usual upward scale. suppose the government lowers taxes by 150 million. aggregate demand will increase or decrease and by how much?
Why do Senior citizens pay less than everyone else for admission to a movie, but pay the same as everyone else for movie-popcorn?
21st century insurance offers mail-order auto mobile insurance to preferred risk drivers in the Los Angeles area.
what is the formula for that equation? Assume you have 5 uneven payments to make and you want to know what you will be paying at 10% per payment (year) on this uneven payment.
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