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The marginal propensity to consume is equal to 0.80. An increase in household wealth causes autonomous consumption to rise by $10 billion. By how much will equilibrium real GDP increase at the current price level, other things equal?
Explicate 2 important indicators the Federal Reserve System will use to analyze this particular economic situation.
If $1,600 was received in January for services performed in January, what was balance in Unearned Service Revenue at December 31, 2000.
Draw the budget line on the Edgeworth box through the endowment point. What is the equilibrium allocation?
1. Critique Keynes using Public Choice theory 2. Critique Keynes using Austrian knowledge theory 3. Critique monetary policy using Public Choice theory 4. Critique monetary policy using Austrian knowledge theory
The individual demand for a slice of pizza at Sam’s Pizza is given by QD = 6 – P. Assume the marginal cost of a slice is constant at $1 and the marginal revenue function is 6- 2Q. What is the profit-maximizing price and quantity if Sam’s sells all pi..
The mayor of new monopoly realizes that the congestion at the port cost the shipping companies and his town money. Which decision would not move him towards a command economy?
Bleacher tickets for the game were sold out and many fans would have attended if tickets were available? What is the main rationing mechanism to allocate tickets for the game?
Note that the firm cannot sell more product than it has produced, and at every period sells as many units as are available, given that availability does not exceed the demand. Given that N=4 and the production during the first period costs $9. Find t..
In which of the following areas is the principle of non discrimination being central to GATT evident? Normal trade relations, national treatment, elimination of quotas and quantitative restrictions all of the above
The model of the market for loanable funds shows that an investment tax credit will cause interest rates and investment to rise. Yet our model of how investors behave claims that higher interest rates lead to lower investment. How can these two oppos..
K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor). Illustrate what is the average product of labor.
Illustrate what is the "incubator effect" that Taiwan's government hoped would emerge in its EPZs.
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