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1. Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
2. (More difficult) What would happen to the multiplier analysis if b = 0? If b = 1?
Suppose a country has no public debt in year 1 but experiences a budget deficiet of $40 billion in year 2 , a budget deficiet of $ 20 Billion in year 3 a surplus of $10 billion in year 3 and a budget deficiet of $2 billion in year 4.
1. Explain why, at a Cournot equilibrium with two firms, neither firm would have any regret about its output choice after it observes the output choice of its rival. 2. What is a reaction function? Why does the Cournot equilibrium occur at the poi..
Assume that demand for a commodity is represented by the equation P = 10 - 0.2 Q d, and supply by the equation P = 2 + 0.2 Qs where Qd and Q s are quantity demanded and quantity supplied, respectively, and P is the Price.
health care cost have risen an average of 85% per year over the past 5 years what is the average annual percentage increase over time if the inflation rate was 7% per year how many percentage points over the inglation rate was the annual healthcar..
You wish to predict the sale price of single-family residences in Massachusetts using property features (commonly called a "hedonic pricing model"). How would you categorize, or label, this dataset? Defend your answer
Create your response, in the Assignment submission box below (not in the Comments field), as a journal or diary entry. Researching the musical Hair most likely will be needed
Before Missy decides the discount policy, she needs a better understanding of the dollar-amount distribution of the mail orders she receives. Missy had an assistant randomly select 50 recent orders and record the value, to the nearest dollar, of e..
‘‘If the government can increase the exigency of human capital accumulation, it could persistently raise the rate of economic growth in the endogenous growth model.'' True or false? Explain your answer.
How are Callaway and Nike attempting to maintain economic profit? Draw a graph to illustrate Callaway's or Nike's short-run economic profit in the market for golf clubs for women.
the industry demand function for bulk plastics is represented by the following equation p = 800 - 20Q where Q represents millions in pounds of plastic the total cost function for the industry, exclusive of a required return on invested capital is ..
data show rents and some other data for student housing around the ann arbor campus of the university of
The parents of a young child decide to make equal annual payments into a savingsaccount, with the first payment being made on the child's fifth birthday and the last payment being made on the fifteenth birthday. Then a rotal of four withdrawals of..
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