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Assume that the MPC is 0.8 and that $10 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $11 trillion. By how much would it have to increase government spending to achieve this goal?
Illustrate what effects would their combined actions have on GDP. Illustrate what effect would this have on your industry.
Elucidate why, at one point in time, a Keynesian approach to managing the macro-economy might be appropriate while, at another point in time, a classical approach might be more likely to produce a superior outcome.
What elasticity of demand did the Village Administrator seem to assume here in his prediction for 1970- 1971? Compute the approximate elasticity of demand (round off, two decimal places is close enough).
Elucidate the bumper harvest increase or decrease the total revenue of American wheat farmers. How could you have predicted this from your answer to part a.
What is the profit maximizing output level for the typical firm? (Hint: Calculate MC for each change in output, then find the equilibrium price, and calculate MR for each change in output)
Explain why does the United States have an absolute advantage in both goods. Which country enjoys a comparative advantage in food.
Illustrate hat are the positives and negatives of protectionist trade policies on the part of the federal government.
Marlene will live for for more time duration. In the current period, she has the option of attending college.
Illustrate to what extent is Walmart's financial health affected by fiscal also monetary policy.
the issue of separating out the effects of price on the quantity demanded when supply cannot be not held constant. the issue of having insufficient variation in prices.
Elucidate considerations would guide a profit maximizing company in deciding how to allocate its research budget.
Would an attempt to decrease the budget deficit not increase it. Does today's deficit not create tomorrow's surplus.
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