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Q. Strength of the multiplier in microeconomics?
Multiplier: An initial stimulus to spending (in form of new consumer, business or government purchases) generally results in a larger final increase in total spending, production and employment in the economy. This magnifying effect is known as multiplier. The strength of the multiplier relies on many factors, including type of initial spending, the importance of imports in spending and amount of unused capacity that initially existed in the economy.
Elasticity of Demand This is a measure of how responsive the sales volume of goods is to changes in that product's price, equal to the marginal change in sales, divided by the
give assumption, rules/formulas and demonstrate that ramsey prices are the seconnd best pricing. explain clearly.
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My current car gets 10 miles to the gallon and no resale value, but it will last 5 years for sure. I can always buy a new car for 8000 dollars that gets 20 miles to the gallon. A g
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Explain the term economic efficiency? Answer: Economic Efficiency means full utilization of all available resources in economy i.e. to produce the needed amount of goods and
Using the Wage Rate and Output per Hour as indicated on the table below, calculate the output per dollar wage and unit labor cost. Then decide on the optimal wage rate for this c
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