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Assume the model Y = C + I + G + X - M, where C = a + bYd and Yd=Y - Tx; Tx is exogenous; I = f( i but MPI = 0; G = Go and X = Xo; M = Mo + mY; Money supply is exogenously determined; Md = Mt + Ml with Mt=f(Y) and Ml=f(i) Now, assume there is an autonomous increase in the level of exports. This would result in: an increase in aggregate income a decrease in aggregate income no change in aggregate income an income change of indeterminant direction
We all have “service failure” stories to tell. As a matter of fact, most people love to tell about a time when a firm provided sub-par service to us as consumers. Sometimes these stories are humorous and other times they are sad. However, was that se..
Why would a company change its product mix rather than just produce and sell more of everything? How do you think Outperformance software determines how to change the product mix to generate more profits?
Since November 2011, the Reserve Bank has lowered the cash rate on eight separate occasions from 4.75% to 2.5%. Clearly, the Bank has become far less concerned about inflation and is giving a much greater emphasis to unemployment in its policy reacti..
Which computer software package should the firm's human resources office use to manage the payroll?
Determine whether the following production functions exhibit constant, increasing or decreasing returns to scale. Show your work and explain.
A market in which there are many firms each selling differentiated products is most likely a ________ market.
Suppose there are two countries Home and Foreign. They have two factors of production, labor and capital. Using production possibility frontier for both countries show that at the same ratio of relative consumption of aircraft to cloth (Da/Dc) in two..
What is the equilibrium income level and rate of interest? Suppose there is an increase in t from .15 to .20 . What will be the change in the equilibrium level of income and interest rate? Suppose there is a decrease in government expenditures (G) fr..
Explain why perfect personalized pricing is typically more profitable than menu pricing.
The real wage
Explain how globalization in pharmaceuticals occurred with respect to both distribution of medicines in new markets as well as shifting of research and development as well as the manufacturing to lower cost markets.
During a business cycle, typically output can be below the level consistent with the secular growth trend: A. only at the peak (top) of the cycle. B. only at the trough (bottom) of the cycle. C. whether the economy is expanding or contracting. D. at ..
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