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The economy of Tinseltown has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y. What is equilibrium real GDP for this economy?
Our economy thrives on competition. Market forces will lead company to produce the mix of goods most desired. Unforeseen events can be responded to in a rational manner.
Use the aggregate demand-aggregate supply model to illustrate graphically the short-run and long-run impact of this decline on output and prices.
D&Z Dry Foods Distributions specializes in the whole distribution of dry goods, such as rice and dry beans. The firm's manager is concerned about an article he read in the morning's Wall Street Journal
Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?
Assume government imposed a minimum wage above what otherwise would be the equilibrium wage rate for this segment.
1. Why do so many economists project increasing budget deficits and government debt over the next several decades 2. According to the Ricardian view of government debt,
Discuss the characteristics of consumer indifference curves, the role of the consumption-opportunity constraint, and the budget constraint in indifference curve analysis.
Many controversial issues in public finance concern when a central authority should allow markets to work and when it should intervene. Generally we think of the government as the central authority, but it could be a university as well.
What is the "reverse causality" problem in determining cause and effect? A) It is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Z that caused a ch..
Over the last 30 years in the United States, the real price of a college education (i.e., after adjusting for inflation) has increased by almost 70 percent. Over the same period, an increasing number of high school graduates
The Corruption Perceptions Index (CPI) is a comparative assessment of a country's integrity performance, along with related academic research on corruption. Provide a description of this index and its ranking.
If hotel management decides to price-discriminate in a manner that maximizes profit, what will be the marginal revenue in each of the market segments, A and B?
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