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Assume an economy is in recession with a MPC of 0.70 and there is a GDP gap of $300 billion. How much government spending must increase to eliminate the GDP gap? Instead of increasing government spending by the amount you calculate, what would be the tax cut required to achieve elimination of the GDP gap? Discuss how and why the spending multiplier and the tax multiplier are different?
How does this compare with your answer in part and explain why firms find it profitable to change their quantities in this way.
A process is monitored for flaws by taking a sample of size 50 each hour and counting the total number of flaws in the sample items. The total number of flaws over the last 30 samples is 658. Compute the center line and upper and lower 3σ contro..
Using supply and demand diagrams, show how each of the two developments can explain the increase in the compensating wage differential. Can information on the number of workers in the risky occupation help determine which explanation is more plaus..
a firm in a purely competitive industry is currently producing 1000 units per day at a total cost of 450. if the firm
Two traffic signal systems are being considered for an intersection. One system costs $32,000 for installation and has an efficiency rating of 78%.
The workers on the first floor neither smoke nor drink and they used whiskey and cigars to re-gift to their friends and family. Since they don%u2019t consume neither of the gifts themselves, they consider cigars and whiskey to be perfect substitut..
Reffland Corporation is charging $6 per pizza in a perfectly competitive market. They realize that when producing 100 pizzas, they face total fixed costs of $500 and total variable costs of $200. The next unit costs $4 to produce
a business can produce its product in different versions version a has a basic design and a lower cost and version b
Which of the following are examples of automatic stabilizers? Check all that apply.
What was Lisa's economic profit for the year? (Give response as a number, no commas, decimals, dollar signs, or otherwise.)
Estimate the business value using BizStats - Valuation Rule for Sporting Goods Stores at BizStats. Calculate the viability of purchasing the business.
How much would each farmer produce in the long run? How many farmers would exist in the industry in the long run and
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