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Some economists argue against the shape of the Keynesian consumption function, which shows positive consumption and negative savings at zero income. These economists believe the consumption function is proportional to income. Statistical evidence has shown that latter type of consumption function is more in line with national data (aggregate consumption as a function of aggregate income for the entire country) and the Keynesian consumption function is generally supported by cross sectional data, or data collected from individual households. Discuss the following questions:
· Why do you think this difference exists?
· Illustrate what the reason which individuals households at some time in their lives spend more than they earn and at other times save some of what they earn?
GDP also consumption both rose by $8 billion in the second round, Illustrate what would have been the size of the multiplier.
The average consumer income is $20,000, and the price of the related good is $1.10. Compute the predicted quantity demanded of X at these prices and income.
Producing nations outside the organization, like Britain and Norway, should do their share and cut production.
Which system would be accompanied by occasional currency interventions by central banks to stabilize or alter rates to avoid persistent balance of payments deficits or surpluses.
If the manager of impact industries decides to produce 240 units, illustrate what will the long-run total cost also long-run average cost of producing 180 units.
Could a service industry utilize production line approach or self-serve design also still keeps a high customer focus
Illustrate what is the total number of wells which maximizes the sum of the profits of both firms.
Discuss the importance of a well-developed compensation plan in attracting as well as retaining good employees as well as how to keep those plans from "working too well."
Elucidate relationship among production curves average product and marginal product also cost curves average variable cost, average total cost and marginal cost.
Little Kona is a small coffee company that is considering entering a marketplace dominated by Big Brew.
Explain where is the economy operating relative to its potential GDP
Adjust the benefit or cost curve or both to illustrate the private also social benefits also costs in the market for electricity.
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