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Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change? Does your answer depend on marginal propensity to consume.
Elastic with respect to its own cost and whether Good Y is a substitute or a complement with respect to Good X.
Illustrtae the difference among concretionary and expansionary fiscal policy.
The United State is currently running an $800 Billion trade deficit. Is this bad for the economy? Suggestion: use the GDP computation, GDP= C + G+ Ig + Xn.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
Explain how might we interpret this statement in terms of cost curves and revenue curves.
Compute the companies concentration measure. Explain how would it change if Delta merged with United States.
Particularly indicators of improving or reducing levels of performance, used by your organization, and how those indicators relate to the kind of "national indicators" we have been Analyzing.
Explain how you think macro-economics applies to Walmart. What would it contribute to your understanding of this organization's prospects.
Using algebra find out the effects of this change in cost on profit maximizing output and the optimal profit.
Explain why is the marginal cost of inputs more important than the average cost of inputs.
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
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