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The classical economists held that the rate of interest would equate planned investment and planned saving, so that all saving would eventually be invested.TrueFalse
The value of the marginal propensity to consumea. can exceed 1b.is always between 0 and 1c. can be less than 0d. is always greater than 1
The aggregate demand curve is the sum of individual demand curves in the economy.TrueFalse
Constant-dollar GDP and real GDP are the same thing.TrueFalse
In national income accounting, grain fed to a hog at a commercial hog farm is considered a(n)a. final goodb. intermediate goodc. consumer goodd. capital consumption allowance
Elucidate why and the benefits/drawbacks of this strategy. Describe each tool and how it is used to achieve it desired effect on the US money supply.
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
Determine how can federal government spending crowd out private sector investment and consumption and does the exent of crowding out depend on whether or not government spending is financed by taxes.
Suppose that the town of Grayrock had a population of 10,000 in 1998 and a population of 12, 000 in 2003.
What is the cost of producing additional car when 50 cars are being produced? What is the cost of producing additional care when 150 cars are being produced?
For an economy at full employment, an rise in the quantity of money will lead to which of following sequence of shifts in aggregate demand and supply curves;
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
The US cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement.
Suppose that we are selling bottles of CocaCola in a vending machine. Currently, we charge $1.50 per bottle and have discovered through trial-and error that if we increase the price by 1 percent,
illustrate what it implies for the relationship between labour supply and productivity growth.
Elucidate considerations would guide a profit maximizing company in deciding how to allocate its research budget.
Cindy gains utility from consumption and leisure. The most leisure she can consume in a week is 168 hours.
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