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Explain the multiplier intuitively. Why is that an increase in planned investment of $100 raises equilibrium output by more than $100 Why is the effect on equilibrium output finite? How do we know that the multiplier is 1/MPS?
A bank in a mediumsized Midwestern city, Company X, currently charges$1 per transaction at it's ATM's. To determine whether to increase price,
Examine the tools of fiscal policy also explain how they are used to reduce inflation or eliminate a recession.
Economists typically view free and mutually advantageous exchanges as a good thing - in the words of economists, they are "Pareto Improving." However, we may find in the literature on the "morality of market exchange".
A monopolist produces according to the following demand curve: p=200 - 4Q. Assume that the firm faces a constant marginal cost and constant average total cost of 60 per unit produced. A.calculate the optimal output that this monopolist should prod..
Suppose the price of food increases from Px1to Px2. On a clearly labelled graph, illustrate the income and substitution effects of the price change on the consumption of food.
Suppose the level of autonomous expenditure, which we could call A, rises by AA. What is the effect on the level of equilibrium national income?
Interior Department currently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.
Could anyone find out how the Consumer Price Index (CPI), the primary measure of inflation used by the government, is calculated. Why might this method not reflect the real cost of living increase for the average person.
Illustrate what will happen in the short run and long run to the world real GDP and the price level. Moreover, describe what policymakers could do after this has happened.
Compute the price or output combination and the total economic profits which would result if competitors offer clones which make the QuickerBetter market competitive.
Give a graphical representation of the trend in inflation and unemployment in terms of unemployment for the period 1983 - 2011. Comment outcome.
Illustrate average monthly rent for a three-bedroom apartment in Miami. Qd is measured in units of 1,000 square feet per month.
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