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Q1. If the AD shortfall is $800 billion and the MPC is 0.8,
a) Explain how large is the desired fiscal stimulus?
b) Explain how large an income tax cut is needed?
c) Alternatively, Explain how more more government spending would achieve the target?
Q2. Which characteristic of competitive markets permits society to answer the illustrate what to create question efficiently?
Q3. The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develop new products or lower-cost production methods? Elucidate.
Describe how each of these activities affects government, households, and businesses. Illustrate flow of capital starting from one entity to another for each activity.
The manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months
During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important.
She is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.
What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and soda.
How is this shifting of AD curve going to affect the price level and output level of the economy.
Briefly discuss the impact of rational self-interest on each of the following decisions. Whether to attend college full time or enter the workforce full time.
Fully explain your answer in a way that shows your understanding of monopolies. Your paper should be two to three double-spaced pages and formatted according to APA style as outlined in the Ashford Writing Center.
To determine the cost of using these people in the army what information do you need.
Suppose that on January 1, the price of one hundred yen was $0.80 and PPP held. Over the year, the Japanese inflation rate was 5 percent and the U.S. inflation rate was 10 percent.
Why might these firms agree to form a cartel. If such a cartel is formed, use the prisoner's dilemma to explain why it may or may not survive.
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