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For simplicity, let's assume that every household has a marginal propensity to consume (MPC) of 0.75. If the government implements a fiscal policy involving its purchases of goods and services, by how much should government purchases (G) change to increase the GDP by $4trillion?
Determine which of the following nations would you expect to have intertemporal production possibilities biased toward current consumption goods,
Demonstrate how an increase in personal and federal income taxes ultimately affects Bank of Canada's balance sheet.
Managers are very interested in how a consumer makes a choice among alternatives. In this exercise, we ask you to consider the amount of money you spend purchasing gasoline to operate your automobile for a month and any alternatives available to y..
The demand for lumber, like that for carpenters, is a derived demand-derived from lumber demand in its many uses, particularly housing. When the demand for new housing increases, so does the demand for lumber. For example, as the U.S. economy reco..
Regarding hospital regulation, the models of hospital behavior developed. predict that the effects of DRG payments on hospital behavior will differ across hospitals because that system offers the same price to all hospitals.
A theater that shows the same movie to large families and to individuals and couples. (Hint: For which set of people will the overall expense of a movie be a larger part of their budget, so that demand is more elastic)
Calculate net revenue, or the revenue from the investment minus the costs; the present value coefficient for every year; and the present value of the net revenue.
For this question, you are to draw two of these alternate graphs. The first graph should show the situation for two women who have access to the same market wage rate, but one chooses to work in the market (an interior solution)
Calculate the profit maximizing price and quantity of subscriptions for the U.K. and indicate each on the appropriate graph. Do the same for the U.S.
What is an efficiency wage How might payment of an above-market wage reduce shirking by employees and reduce worker turnover How might efficiency wages contribute to downward wage inflexibility, at least for a time, when aggregate demand declines
explain how rent seeking can lead to a drop in production of goods and services. What role might the underground economy play in lessening the drop in productive activities?
What is the effect on the price of a recordable CD and the quantity of recordable CDs sold if a. The price of an MP3 download rises? b. The price of an iPod falls? c. The supply of CD players increases?
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