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Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
Among which of the subsiquent policies would decrease demand-pull inflation.
Describe whether each of the following would cause a shift of the aggregate demand curve, the aggregate supply curve, neither, or both.
Illustrate what interest it should be used in project analysis calculations.
Discuss and explain how the development of the Internet has changed the market structure in which firms operate. Remember that, we are assuming most companies can be categorized as being in ideal competition, monopolistic competition,
As a government needs to increase tax income, it will often increase the sales tax on gasoline.
Eluidate the difference among comparative advantage and absolute advantage.
Prepare a chart that lists three strengths and three weaknesses of the Consumer Price Index calculation.
Explain why is private property and the protection of property rights, so crucial to the success of the market system.
Provide an economic profile of the Airline industry. Include an industry profile, Industry size data and current developments and trends within the industry.
Briefly outline the current state of U.S. policy toward sugar imports and perform an economic cost benefit analysis to evaluate the welfare effects of eliminating import quotas and tariffs.
Explain the trade-offs between any three of these options. In other words, what will you gain, and what will you have to give up if you choose each of the three options?
you select to work more hours or fewer when offered a higher hourly salary.
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