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Q1. If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC increases, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?
Q2. How do changes in disposable income affect government purchases and the government purchase function? How do changes in net taxes affect the consumption function?
How many tickets to sell to maximize total welfare.
Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.
Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve.
In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes.
The law of demand states that other things equal
Willie will receive all his operating expenses, and in addition will receive $2,000 each year for the decline in value of the automobile.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
Find the equilibrium price and quantity after the shift of the demand curve.
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
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