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Suppose that government policymakers decide that they will change taxes to raise aggregate output by $400 billion, and mpc = 0.5. By how much will taxes have to be changed?
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
A nation will generally be able to consume less when it trades because of lost jobs to outsourcing. The consumption possibilities curve generally crosses the production possibilities curve. A nation that decides to specialize and trade is no longer l..
Suppose 40 percent of a population all receive an equal share of p percent of the nation’s income, where 50 ≤ p ≤ 100. The remaining 60 percent of population also shares the rest of the income equally. For any such p, what is the Gini coefficient for..
What is the percentage of sales forecasting method? What are some of the limitations financial analysts should be aware of in applying this method?
Given the following demand and supply curves: (a) Q_d=-P+10 and (b) Q_s=P. Calculate the inverse demand function (provide below) and graph the two lines on Figure 1. Calculate and label the Consumer Surplus and Producer Surplus.
The interest rate affects the investment patterns in the economy. A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit ..
Which segment of the population is one of the wealthiest in the U.S.?
Elucidate how principles of economics affect decision-making, interaction and workings of economy as a whole.
Angola economists are working on the country's figues. Find the (a) GDP deflator (b) Nominal GDP (c) Real GDP (d) what is the growth for Angolan GDP for 2013? If the 2013 price is $10, quantities = 50 million; While the year 2000, which is the base y..
Maria consumes two goods, strawberries and other goods. Because of her exquisite taste, she buys her strawberries from a particular vendor. Her preferences over other goods y and strawberries x is characterized by a utility function U(x, y) = x + y, ..
You are a division manager at Toyota. If your marketing department estimates that the semiannual demand for Highlander is Q = 80,000 −1.2P, what price should you charge in order to maximize revenue from sales of the Highlander?
In an intertemporal l decision-making context, the real interest rate is considered as the price of today’s consumption relative to future consumption. The empirical fact that the labor supply curve is upward sloping suggests that the substitution ef..
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