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1. Why should imports be excluded from GDP?
2. Assume that for a particular economy, for some time-period, investment was equal to $100, government expenditure was equal $75, net taxes were fixed at $100, and consumption was given by the consumption function , where is disposable income and Y is GDP.
(a) What was the level of equilibrium income (Y),
(b) Illustrate what was the value of the government expenditure multiplier,
(c) What was the value of the tax multiplier,
(d) Suppose that investment declined by $40 to a level of $60. What will be the new level of equilibrium income?
In the Castorian Airline market there are only two firms. Each firm is deciding whether to offer a frequent flyer program.
Is there any range of production characterized by scale of economies. At Illustrate what production level are scale economies exhausted.
If fixed costs increase to $1200, what will happen to equilibrium price and quantity.
Clarify what happened to the profit maximizing output rate when input costs were increased.
Assume that this cost is set by an upstream wholesaler with monopoly pricing power.
Elucidate why or elucidate why not. Does it matter whether the inflation is expected or unexpected.
Is the industry or industries in which the firm operates conducive to abnormally high rates of return.
Explain the difference between a person's nominal income and their real income. Why is real income more important to that person.
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
Suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor.
Assume that over a range of prices, the price elasticity of demand varies, total revenue curve over these two ranges of the demand curve as price fall.
Teapot Dome was a successful government project to displayed Harding administration's policy of a laissez faire government. Elucidate
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