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How does monetary and fiscal policy affect aggregate demand?
*In addition to other answers, can you explain how these affect the AD also?*
-Open market, changing reserve ratio, interest rate feds charge bank.
-Stimilus(What does this have to do with anything?)
During the purchasing decision, evaluation stage, the consumer forms preferences among the brands in the choice set.
Suppose that a certain country has an MPC of 0.9 and a real GDP of $500 billion. If its investment spending decreases by $12 billion, what will be its new level of real GDP?
A perfectly competitive external market for the intermediate product exists, and an imperfectly competitive external market for the intermediate product exists.
What is the difference between an economic profit and an accounting profit, give an example? 3. Discuss the difference between diseconomies of scale and diminishing returns. Based on the cost curves which is more likely in businesses?
Explicate Illustrate what will happen to output and the cost level play in this adjustment.
Using the value of MPC = 0.8, and knowing the difference between the values of expenditure multiplier and the tax multiplier, it can be safely stated that the reduction of taxes by $400 billion (other things staying the same), Estimate increased leve..
Now, assume that a company comes to town and buys the entire sell Coca-Cola, creating a monopoly on Coca-cola. Assume that the cost curves for the new firm are the same as the perfectly competitive firm. in the new market, Coca-cola sells for 10.75, ..
Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..
Which of the following statements is generally True about information products?
q1. confronted with a choice between 50 today or 100 one year from now economic experts suggest that the vast majority
Alexander Company is a used car dealership serving Los Angeles Metropolitan area. The corporation has experienced a rather sharp decline in used car prices in recent years.
GDP and the Multiplier Application. Most estimates indicate that the marginal propensity to consume in China is approximately 0.50. If we ignore a rise in the price level generated by a boost in aggregate demand that results from an increase in real ..
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