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Q1. If the AD shortfall is $800 billion and the MPC is 0.8,
a) Explain how large is the desired fiscal stimulus?
b) Explain how large an income tax cut is needed?
c) Alternatively, Explain how more more government spending would achieve the target?
Q2. Which characteristic of competitive markets permits society to answer the illustrate what to create question efficiently?
Q3. The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develop new products or lower-cost production methods? Elucidate.
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).
on the planet omicron persei 8 government spending is 1000 net taxes are 1200 as well as planned investment is 1400.
comparing the company's cash records with the monthly bank statement reveals several additional cash transactions. Calculate the correct balance of cash?
Describe elderly individuals who complain about the increasing cost of their medications have no real complaint.
Could Boeing's margin probable rise or else fall if yen then depreciated as well as competitor prices were unchanged.
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
Calculate the range, variance, and standard deviation for this data series. Which measure does the best job of describing the dispersion in this variable.
Since education yields private market returns, which are fully captured by the person who makes the investment, the market will provide the optimal level of education and the govern- ment should not intervene.
Why do people routinely stuff themselves at all you can eat buffets Explain in terms of both utility also demand theories.
Give an example of an organization or business in your area that performs the "place" function, and explain why you picked this organization/business.
Enlighten the budgetary challenges state governments would face if the economy were to go into a recession also the unemployment rate were to increase.
Rain spoils the strawberry crop, the price raises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week
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