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Suppose that the national economy is experiencing a recession with an estimated recessionary gap of $30 billion. Congress is considering the use of fiscal policy to ease the recession, and due to current political sentiments, it has determined that the maximum spending increase the government is willing to support is $3 billion. The government wants to make up the remainder of the recessionary gap using tax cuts. If a spending increase of $3 billion is approved and the MPC is 0.8, by how much will taxes need to be reduced to close the remainder of the recessionary gap?
In "The Journal Of Economic Perspectives" published by the American Economic Association studied the concept of standard of living from 1800 to the present. They talk about health, birth rate, length of life, literacy, and politics.
Assuming Jack's preferences over beer and whisky did not change, was his behaviour consistent with those of a rational consumer model? Draw the two budget constraints and explain your answer.
The demand scheme for the product created by a monopolist. Quantity demanded Price Total revenue Marginal revenue Price elasticity.
To study the effectiveness of price discount on a six-pack of soft drink, a sample of 5,500 consumers was randomly assigned to 11 discount categories.
What is NDP, Net exports, Govt. taxes minus transfers and disposable personal income Personal Saving
Two years ago, Rone issued a $25 million (U.S.$), five-year floating rate note (FRN). The FRN pays an annual coupon equal to one-year LIBOR plus 75 basis points. The FRN is non-callable and will be repaid at par at maturity.
If the MPC is .8 and the government wants real GDP to rise by $100, how much should it increase government spending by?
Which do you feel is a better approach, free or fair trade, and why? Given concept of comparative advantage should we even be discussing free versus fair trade?
Which aspects of the Great Depression are echoed in the ongoing economic crisis that began in 2008.what is different about the two periods.
Suppose the real domestic output in an economy is 27 units, the quantity of inputs is 7, and the price of each input is $50.
Discuss how ABC Company would deal with these factors to become more successful in its investment in a country
Explain five factors that justify the existence of small scale firms in an economy.
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