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Suppose the marginal propensity to consume increases from 0.66 to 0.87. The value of the expenditure multiplier will increase from {__} to {__}.( enter you respones rounded to two decimal places.) When the value of the multiplier increases all else a change in expenditure will raise aggregate expenditure by ( a smaller, or a larger, or the same )amount .
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a highter concentration of polluted areas than a command-and-control system.
Jack wishes to become a millionaire by the time when he is 60 years old. He believes that by careful investment he can obtain 15% rate of return. He plans to add a uniform sum of money to his investment each program each year, beginning on his 20th b..
Use the classical theory of distribution to predict the impact on the real wage and the real rental price of capital of each of the following events. A technological advancement improve the production function
Explain economic theory of cost including fixed cost, variable cost, marginal cost and total cost with an airline application?
Firm A emits 200 tons of pollution and firm B emits 150 tons of pollution. Assume that the government issues 300 tradable permits (with one permit allowing for one ton of pollution). Each firm receives 150 tradable permits. Would the annual pollution..
Suppose an economy has a natural rate of unemployment of 5%. According to Okun's law, what rates of unemployment would we expect to see in this economy, if the short-run output equals -2% one year and +2% another year? Explain the differences in resu..
Between January and December 1994, U.S. unemployment fell from 6.7 percent to 5.4 percent of the labor force. The Federal Reserve, the nation's monetary-policymaking authority, took active measures beginning in February 1994 to raise short-term inter..
Over the last 30 years, management accountants have made the transition from a “bean counter” to a “strategic partner.” The advent of technology has facilitated automation and recordkeeping. As such, the management accountant has been free to develop..
There were 110,752 discharges in 2005, for patients over the age of 25 who were diagnosed with Diabetes. With an average length of stay being 4 days and an in-hospital death count of 1,016. In 2006 the total number of discharges increased to 118,837 ..
Discuss the policy tool(s) the Federal Reserve has been using in the last year or two. What benefits does this tool have? Is it effective in supporting the money supply? If not, what can be done differently?
Suppose that in the short run k=100. Moreover, wage of labor is w=5 and price of the product is p=10. What are the optimal units of labor?
In order to maximize net benefits, the managerial control variable should be used up to the point where:
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