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What is crowding out, and when would you expect it to occur? In the face of substantial crowding out, which will be more successful-fiscal or monetary policy?
The Morton Company produces and sells two products, A and B. Following financial data on the products is available: Product A Product B Selling price $10.00 $12,00 Variable costs $5.00 $10.00 Fixed costs $2000.00 $600.00 Machining time 0.5 hrs 0.25 h..
According to the spending allocation model, adecrease in government spending results in, among other things, anincrease in investment in the long run. Suppose the capitalstock is $1 trillion and a fall in government spending causes a $50billion ri..
Explain the term demerit goods and give examples of this and what are externalities? What are positive and negative externalities?
Data on historical national health expenditures
Consider the simple linear regression model without an intercept, y = ß1x + u, with the assumption E(u|x)=0. Also assume that E(x)=0 Show that E(y)=0 and using this as well as E(x)=0 show that the covariance between x and y is given by E(xy) and t..
If the price of output is still fixed at $300, and the productivity of workers is still defined by the data in the second row, draw the VMPL curve, insert the supply limit and determine the equilibrium wage.
If you used the uncompensated demand curve to calculate the change in consumer surplus, would your calculation be too high or too low?I. Provide a graph showing the initial outcome, the outcome after price change, the income effect, the substituti..
XYZ Corporation is a manufacturer of widgets. Over the past several months, it has been selling its widgets for $100 each and unit sales have averaged 5,000 units per month. This month its competitor, ABC, Inc. raised the price of its widgets from..
Suppose Bill is on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cottage cheese, and popcorn. The marginal utilities for each food are tabulated below. Bill is allowed only 167 grams of carbohydrates daily. Rice Krispies, co..
Find all Nash equilibria (if any) in pure strategies (PNE). Your answer should include strategies and equilibrium payoffs associated with your PNE.3. Find all Nash equilibria (if any) in mixed strategies (MNE).
Given a project planned to cost $12,000 but actual cost to date is $10,000, and the project is only 70% complete, calculate the variances. Should the customer be happy?
From the Keynesians, Y = C I G NX can be transformed into a theoretical model. In particular, assume that the consumption C = A mpc (Y-T), where A is a constant, mpc is the marginal propensity to consume, Y is national income and T is income taxes..
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