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In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consume. Assume the marginal propensity to consume (MPC) was only 0.4. How much of that $900 billion went to increased consumption? Where did the rest of the money go?
Increased consumption: ________________________
Where did the rest go? _________________________
Using MPC = 0.4, what is the spending multiplier (the actual numerical value please):
What was the overall change in income as a result of the stimulus package after the multiplier completely works its way through the economy?
If the company installs new equipment, FC rise to $2000 and AVC drops to $2.25, what is the break-even point and at what production level should the company switch from the old machine to the new?
Elucidate how Illustrate what the balance sheet will look like (comparison to above) if Brimstone declares a 10% stock dividend.
Explain why there is a natural unemployment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related. Explain how sellers' costs, producer surplus, and the supply curve are related.
q1. suppose that there are two products soda along with clothing. both brazil and the united states produce each
Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. (Plays and movies are perfect substitutes with 1 to 3 ratio.) Draw her indifference curves. If plays tickets cost..
suppose the quantity of good x demanded by individual 1 is given by x1 10 ?? 2px 001i1 04py and the quantity of x
Compute the short- run and long- run results, explain the changes in the price and in the number of firms.
Describe how you would correct for it within the regression equation. What transformation would you apply to the data to account for the trend?
Market for this commodity is characterized by perfect competition. Government steps in and levies a unit tax of 10 on this commodity. Illustrate what is revenue raised by government through this tax.
what is Marginal Analysis and why Is Marginal Analysis Important in Economics? (c) What is the role of Marginal analysis?
q.the economic analysis division of mapco enterprises has estimated the demand function for its line of weed trimmers
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