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1. Why is it important to take account of accelerator effects when considering changes in the macro economy? What does the accelerator effect imply for the stability of invest-ment spending over time?
2. Explain how the multiplier and accelerator effects may impact together to lead to fluctuations in national income. What steps might government adopt to reduce economic instability?
plot the Lorenz curves corresponding to the two sets
Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P Qd = 50000 - 10P
For the past four years, Armonco Manufacturing has been offering a three-year limited warranty on all appliances it manufactures. Although all appliances are given a unique serial number when manufactured, until this year Armonco had no capability
U(C,1day-L)=4C2/3(1day-L)1/3, where C is the amount of consumption and L is the number of hours worked. If the price for consumption is $9, the wage rate per hour is $6, initially the consumer had $162 and 24 hours as time endowment;
Currently, which type of system determines the values of the major currencies, such as the dollar, yen, and euro?
Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10 220 15 300 20 360 25 450 30 600 35 770 40 960 a. What is the marginal cost and average total cost for the firm at each level of output
Is there a trade-off between wages and total employment?
Wholesalers can buy roses at auction in aalsmeet, holland for $125 per container. a. Without international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in the United States
Big Top is the only circus in the nation. Table 2 sets out the demand schedule for circus tickets and the cost schedule for producing the circus.
Wilpen Corporation, a price-setting form, manufactures nearly 80% of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the linear specifications:
The Relationship between Unemployment and Inflation Rate,The Poverties in China, India and other Developing Countries
where P is the price in cents per kilo and Q is the quantity in millions of kilos. Canada is a small producer in the world chick pea market, where the current world price (which will not be affected by anything we do) is 60 cents per kilo. The Gov..
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