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Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion.
a. 0.9
b. 0.8
c. 0.75
d. 0.6
A standard roulette wheel has an array of numbered compartments referred to as "pockets." The pockets are red, black, or green. The numbers 1 through 36 are evenly split between red and black, while 0 and 00 are green pockets. For every $1 that on..
Explain the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? Why?
a. Does the MPL for both countries graph as you would expect? b. Say that country A originally had 1 unit of labor and country B had the rest. Then, migration is allowed. By how much does welfare improve?
What is economics? What role does economics play in your personal and organizational decisions? Provide an example of the role of economics in decision making.
why do points on a utility possibility curve represent efficient allocations of resources? why must the utility
An increase in aggregate demand is expected to lead - An increase in aggregate supply is expected to lead
1. will increases in government spending financed by borrowing help promote a strong recovery from a severe recession.
How does the adoption of a tighter monetary policy, like that conducted by Volcker Fed in the early 1980's affect output, inflation, and the real interest rate in the short run? In the Long run?
The problem is belongs to Economics and it is explain how two economies starting with same production function and same initial levels can experience different economic outcomes thirty years later.
overviewyou have the task of developing an e-commerce business plan for the client described in the case study below.
College education provides higher income for the individual, but also a more productive and more educated person who will contribute to society in many ways. Carbon dioxide emissions are thought to contribute to global warming, and there is concer..
a restaurantbar is analyzing its pricing of beer. it has determined that the price elasticity of demand for beer is
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