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How might an accurate value for the multiplier aid a government in setting fiscal policy?
Any given multiplier will enhance national income at a given rate times enhance in government spending. Knowing that, for instance, the value of k is 2, and that 10,000 jobs are expected to be created for every additional billion in national income, then additional government spending of 0.5billion will make the necessary jobs.
Foreign investment: To attract foreign investment – Developing Plans are used as a means of attracting foreign investment or foreign aid.Foreign government and international o
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 1. Suppose that the
Allocative Efficiency The production of products and services such that stages of production are closely tied to levels of customer demand.
Q. Show the method of applying a discount? The method of applying a discount rate to convert future monetary amounts to their equivalent value in today's terms, based on the pr
Problem: i) The inverse market demand curve for a Stackelberg leader and follower is given by P = 10 - Q. If each has a marginal cost of $4, what will be the equilibrium qu
Explain how Keynesian economics views the role of markets and government intervention in fighting business cycles. Keynesian economics believes markets frequently fail and gov
2. Suppose the price of printing paper for digital cameras has recently risen by 10 percent due to an increase in the cost of materials used in the finish for the paper. As a resu
LONG PERIOD ANALYSIS: Long period refers to a time when all the factors are variable. Earlier in the short period analysis, we had considered capital (K) to be fixed factor. H
calculate point elasticity of demand function Q=10-2p for decrease in price from Rs3 to Rs2
Consumer Behavior: The government considers different calculations to help senior citizens with their increasing heating bills. One proposal on the table is to pay 20% of senio
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