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If the multiplier is 15 and the government increased government spending by $30 billion, holding all other factors constant, how much would real GDP increase?
If the government decreased government spending by $30 billion, how much would real GDP decrease?
Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC
Is it possible that the levels of unemployment present day which are the result of government policies.
Time inconsistencies (based on Barro-Gordon (1983), "Rules, Discretion, and Reputation in a Model of Monetary Policy", Journal of Monetary Economics, 12:101-121) Assume that the preferences of the benevolent policy maker can be represented through..
Nowhereistan is a poor country in an island in middle of nowhere. It produces only apples, bananas and oranges. The following are the information for 2009 (base year) and 2010
Consider a 30 year series of cash flows that pays $1,000 at the end of each year, and has present value of $12,500. What is the discount rate? (One way, but by no means the only way, to solve this problem is to use the Solver in a Microsoft Excel s..
Illustrate what rate of inflation characterized this economy during 1994.
1. Who was the first administrator-statesman to attempt planning as a means for economic development?
If I have to lay-off 19 employees as the company is upside down -$1878.00 after total cost. So, by cutting staff of 19 with a salary of $100 per day, an eight hr day, how much will I save.
Assume that an engineer is deciding either not to move to northern Virginia or remain at his current job in Milwaukee.
Sales for year just ended were $500, and fixed assets were used at 80% of capacity. Current assets and accounts payable vary directly with sales.
Question 1. If you lose one customer who spends $50 per month, what is the net loss over a decade? Question 2. What is one of the benefits of treating customers fairly to generate customer loyalty?
An entrepreneur plans to convert a building she owns into a video-game arcade. Her main decision is how many games to purchase for the arcade.
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