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On the planet Omicron Persei 9, economists estimate the following:Output (Income) ........$2,000Government Purchases ......$200Net Taxes ............$200Planned Investment Spending ....$300Citizens consume 75% of their disposable income (marginal propensity to consume is 0.75).
a. Find consumption and planned aggregate expenditure.
b. Carefully explain why and how this economy is not in equilibrium.
c. Explain what business will do in response to this disequilibrium.
d. Explain what, in turn, will happen to income.
e. A government official suggests increasing government purchases by $100.
What is the main benefit of this proposal?
What is the main drawback of this proposal?
What is affirmative action? What is an affirmative action plan? Do you feel that affirmative action is a good way to remedy past discrimination? Why or why not?
Do these differences imply (1) that American executives are overpaid, and (2) that the form of the compensation in either America or Europe is suboptimal? Explain.
Kathy Bakery is a local full service bakery in Omaha, Nebraska. Kathy sells loaves of wheat bread for $3 a loaf.
Ethical relativism does not do a good job of resolving conflicts, but it can work well to resolve conflicts within a culture by applying the majority rule. For this paper you are going to use ethical relativism to determine the best way to deal
If you were the owner of a clothes shop.
Explain what types of biases arise in the different approaches to understanding consumer demand and behavior - explain whythe typical hypothesis that analysts want totest is whether a particular regression coefficient
Why might it be value increasing for the firm to make Kraft accountable for such events. It is true that she cannot control those events.
How much of the $76,000 joint cost should be allocated to No. 2 Common? a. $77,000. b. $0. c. $76,000. d. $48,000. e.$17,267.
Assume the external marginal cost of pollution is MCext=5Q and internal marginal cost is MCint=10Q. Further, suppose the inverse demand for the product, Q, is given by P = 90-Q.
Discuss two problems that arise in estimating cost curves. Suppose that the marginal product of labor is: MP = 100 - L, where L is the number of workers hired.
Why is advertising prevalent in many oligopolies, especially when industry demand is inelastic?
The cross elasticity between Product A and Product B is 10. Do you think that Product A is likely to face an elastic or inelastic demand curve? Explain.
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