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Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is 0.5. Aggregate expenditures must have increased by: A) $100 billion. B) $50 billion. C) $500 billion. D) $5 billion.
"When in Rome, do as the Romans do". Would this be a suitable guideline for MNC's (multinational corporations) doing business in developing countries with respect to ethical practices and social responsibility? Discuss.
An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on checking accounts. How does this change affect the demand for money? What happens to the velocity of money?
How fares paid by consumers, in East and West Berlin after unification; given that living standards are much higher in West than in East Berlin. Assume the market for taxi cabs is competitive.
For class surveying different economic systems, I read a book on Marxism and its core beliefs. As I read, I came to learn that the Marxist view of economics depends heavily on the Labor Theory of Value since Marx believed that the value of a good was..
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?
Some politicians and financial/economists argue that the U.S. must embark upon an era of “financial repression” in which wealth must be kept from fleeing the country and must be taxed heavily within the country. What would be the rationale for financ..
You can either imagine which your organization has received a complaint from a customer or client about a product
When a construction possibilities frontier is bowed out, away from the origin the opportunity cost of a good.
What is your bottom line in negotiations with the telecom? Suppose you agree on a price slightly above your bottom line.
Which segment of the population is one of the wealthiest in the U.S.?
Assuming that price of labor (L) and capital (K) are 12 and 3, respectively. One manufacturing company is facing production function given as Q = LK. What will be the input combination based on the aforementioned information to minimize the cost? Sup..
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