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Problem 1
Assume that in Period 0 we have Y=200, C=180, G=0 and MPC=0.75. Assume in period 1 only G increases by 30. How much will output/income (Y) ultimately increase? Show your calculations.
Problem 2
Based on Problem 1, assume that G=0 in all periods but in period 1, taxes decline by 15. What happens to output/income(Y)? Show your calculations.
Problem 3
Based on problem 1, assume G increases by 15 but taxes increase by 15 to maintain a balanced budget. What happens to output/income (Y) in this case? Show your calculations.
You're the GM of firm that manufactures PC's. Demand for them has dropped 50%, thanks to soft economy. The sales manager has identified only one potential client, who has received many quotes for 10000 new PC's.
In the United States real estate brokerage industry, brokers employed by large brokerage companies have traditionally worked for a portion of the commissions they generate.
What is the net present value of this proposed project? If efficiency was the only objective for making the decision and we have fully accounted for all costs and benefits would you recommend the project go ahead or not?
During 2005, Orlando, Florida, was increasing rapidly, with new jobs luring young people into the area. Despite rise in population and income growth that expanded demand for housing,
What is the free trade level of rice consumption in Japan, how much rice do domestic farmers produce in Japan
Plot these curves on graphs. Compare the cost curves and discuss their characteristics.
The Arena Corporation, which sells engines, has a uniform value of $500, which is charges all its consumers. But, after its competitors begin to cut their rates in the California market to $400, Arena decrease its price to $400.
Why there is so much advertising in monopolistic competition and oligopoly? How does such advertising help consumers and promote efficiency?
The market is perfectly competitive which constant input prices and each firm has the same cost structure from the table listed below;
How does the article support the Simple Circular Flow model and how does the article support the Law of Supply and Demand?
What is the relationship between the average variable cost and marginal cost and relation between average product and average variable cost?
Most people are concerned that wages determined in the labor market are unfair and most people typically earn the bulk of their income from wages and salaries.
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