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Assume the economy is in short-run equilibrium and there is less than full-employment output. Also assume that the marginal propensity to consume (MPC) is equal to 0.8.
a. What is the value of the government spending multiplier in this case?
b. Given the size of the multiplier, what would be the implied change in income (gross domestic product) from the stimulus spending of $500 billion?
Describe the economic situations when your position can be successfully implemented and when it may be doomed to failure.
Describe how the Federal Reserve can affect the money supply and interest rates.
Shirley loves peanut butter and jelly sandwiches. However she must have the proportions of peanut butter to jelly exactly right and she always uses 3 tablespoons of peanut butter and 2 tablespoons of jelly when making her sandwiches.
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
Tickets cost $5 to play, and you get to pick a number between 1 and 20. If you guess right, you win $100. If you guess wrong, you win nothing. In either case, you must pay the $5 to play. What is your expected payoff if you play this game
You are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. In addition to the large number of generic type of soft products in your market, you also compete against major brands such as Coca-Cola ..
Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.
given the following production function y k14 l34 find the following a. per worker production function. b.
What is the relation between the price of the bond and the interest rate? If the interest rate is 8%, what is the price of the bond today? How does the demand for bonds vary with the price of bonds?
Balance sheet: equipment = 500, inventories 100, receivables70, payables = 50, debt = 300
Diseconomies of scale occur mainly because: of the law diminishing returs, firms in an industry must be relatively large in order to use the most efficient production techniques, of the inherent difficulties involved in managing and coordinating a la..
Explain how much is the market paying per share for growth opportunities. Exzplain what is your expected one-year holding period return on HP stock.
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