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Suppose that the government decreases spending by $100 billion. What happens to aggregate demand? What is the likely effect on prices and output? Where are the new equilibrium price level and GDP relative to the old levels?
The terms of trade between two countries refer to
Which of the following best explains why a $7 billion tax cut can lead to a $9 billion increase in consumer spending in the short run?
What is the difference between the optimal level of total consumption minus the amount of total consumption generated by the market
Suppose the economy is experiencing a recession and high unemployment. What would be the interpretation of how an expansionary monetary policy would address this problem?
In its rivalry with Westinghouse, General Electric instituted a "price protection" plan. This plan stated that if GE lowered its price, it would rebate the price difference to its past customers. Show that this plan makes collusion between GE and Wes..
Suppose that a certain industry is competitive and there are many firms all with the same cost function given by: LRTC=q3 - 2 q2 + 2q (MC = 3 q2 – 4 q + 2 ) The industry inverse demand curve is given by: p = 11 - .2 Q Find LR equilibrium q, Q, n, p, ..
q1. do protectionist policies benefit producers consumers workers or the government? explain. explain how the buy
Do you think the industry environment is significantly different today explain.
Draw and explain the shapes of indifference curves that reflect the following preferences.
Compute the balance in your retirement account when you will be 25, 30, 40, 50, and 65 years old assuming the average annual rate of return is 6%. Assume there are no deposits or withdrawals in this account, so the original balance just accumulates. ..
Given the following model: Y = C + I + G + (X - M). Suppose that : Autonomous Consumption = $ 500 MPC = 0.75 Taxes = $ 400 Investment = $ 500 Government Spending = $ 1200 Exports = $ 300 Imports = $ 500. Explicitly find the necessary change in G to g..
Discuss one businesses case for why the textile industry is interested in sustainable practices and why you find it interesting. Can you think of another example where sustainable practices makes good business sense?
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