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1. Consider a nation with the sacrifice ratio according to our PowerPoints. It wants to reduce its inflation by 20%, spread out evenly over 4 years. How much will it need to sacrifice GDP each year to do so?
2. If the government decreases taxes by $200 and people save 32% of each additional dollar earned, what will be the change in income (aggregate demand)? (Enter a positive number for an increase in income and a negative number for a decrease.)
3. Using the typical estimate of the sacrifice ratio from the PowerPoint, how much GDP (in percentage terms, though you are not to include a percentage sign) must be sacrificed to lower inflation from 7% to 4% in one year?
4. If the government decreases its spending by $1560 and people in the economy spend 84% of each additional dollar they earn, what will be the change in income (aggregate demand)? (Enter only numbers, a decimal point, and a negative sign if necessary; round your answer to two decimal places. Enter a positive number for an increase in income and a negative number for a decrease.)
Describe the different test events and what aspects of the system are covered during each event.
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Donna Shader, manager of the Winter Park Hotel, is considering how to restructure the front desk to reach an optimum level of staff efficiency and guest service. At present, the hotel has five clerks on duty, each with a separate waiting line, du..
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