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Consider an economy that is operating at full-employment level GDP. Assuming the MPC is 0.90, predict the effect on the economy of a $50 billion increase in government spending balanced by a $50 billion increase in taxes.
P stands for price Pr stands for price of related good also N stands for per capita disposable income.
If an absolute majority approve the plan, then they proceed according to the plan. If he fails to pass his proposal by an absolute majority, then P1 must walk the plank, and it becomes P2's turn to propose a distribution of the coins among the rem..
Imagine you are the CEO of Yahoo!, and outline the relevant obligations, ideals, and effects that you believe should be taken into consideration before developing a company policy regarding employees working remotely. Examine the ways in which the..
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Some states are required to balance their budgets. Is this measure stabilizing or destabilizing Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on th..
If the elasticity of demand for spring break packages to cancun is -5 and if you notice that this year in cancun the quantity packages demanded increased by 10% then what happened to the price of cancun vacation packages?
Governments routinely alter their spending patterns to impact the economy, particularly as they relate to GDP growth and unemployment levels. Explain what effect an expansionary fiscal policy would have on the price level and real GDP starting fro..
You are provided with the subsiquent transactions that took place during a current fiscal year.
Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality. If there is an externality, does it seem likely that private markets will arise tha..
A country has the per-worker production function, y=5k1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=0.2Y where s is total nation..
Prove that a risk-averse von Neumann-Morgenstern perticular will over-insure, fully-insure, or under-insure according as the insurance is available
Elucidate how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule.
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