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1. What is the multipliereffect?
2. What relationship does theMPC bear to the size of the multiplier and the MPS?
3. What will the multiplier bewhen the MPS is 0.4, 0.6, 1, ½ and 0?
4. How much of a change in theeconomy will result if businesses increase their level ofinvestment by $8 Billion and the MPC in the economy is 4/5 and ifit is 2/3
What is the marginal product of the third worker What is the marginal revenue product of the second worker What is the marginal cost of the fourth worker Based on your knowledge of marginal analysis, how many workers should you hire
Suppose advancing technology (e.g., the miniaturization of electronic circuits) increases the productivity of the 90-laborer workforce by 20 percent. Draw a third production possibilities curve (PT) to illustrate this change.12
Post-war Recessions in the UK - Identify the periods of recession in the United Kingdom since 1955, stating clearly the criteria that you are using to define recessions.
You are buying a new car for $20,000. You put $2000 down and are financing the balance. You signed a contract for the loan for 4 years. Your loan has an interest rate of 8% interest (APR). You make monthly payments and the interest is compounded m..
Assume that the production and distribution technology for all the new rms is the same as SIT press i.e., each firm bear a cost of $2 for each copy. Identify the equilibrium price and compute the equilibrium quantity
Suppose per unit tax, T is imposed on buyers. Then what is the equilibrium quantity and equilibrium price? Now, assume T=30, then what will be equilibrium price and quantity. (Hint: use P is the price producer receives, and P+T is price paid by th..
Assume the economic activity of the economy in a given year consists of the following: Steel producers fabricate Php. 4 billion of farm machinery, which is sold to farmers; Farmers produce 40 million sacks of rice, which is sold for Php. 25 billion ..
What does Gunder Frank provide as evidence of a Sino-centric world between 1500 and 1800 What was meant be the Columbian Exchange and how did this contribute to the Rise of the West
In city B, the value of an apartment also falls the further it is from the business center, yet the fall goes down gradually. For example, an apartment one kilometer away will lose 20 percent of its value and an apt 2 kilometers away will lose onl..
Suppose a company owns two plants, plant A and plant B. The total cost functions are as follows Plant A: TCA = 5qA + 0.1qA2 Plant B: TCB = 5qB + 0.2qB2 1. Suppose that the company is a price taker and the market price is $10.
Imagine a manufacturing industry that produces 100 million units of compact digital cameras annually in the US market. Suppose the minimum efficient scale (MES) for the production of digital cameras is 10 million units annually.
without a market for pollution rights, dumping pollutants into the air or water is cost less; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an opportunity cost for the polluter." What is the significance..
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