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Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9% is too high. They would like to increase real aggregate output (RGDP). She wants to know what policy to pursue to increase RGDP by $2 trillion ($2,000 billion). The best estimate she gave you is the value of MPC = 0.8. Which of the following policies should you recommend and why? You need to show your work of estimations and explain in words.
a. Increase government expenditure (G) by $400 billion
what is the expected economic life for this water pump and what is the minimum annual equivalent cost.
discuss the major barriers to entry into an industry.explain how each barrier can foster either monopoly or oligopoly.which barriers , if any do you feel give rise to monopoly that is socially justifiable
Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing. To what extent can product differentiation create barriers to entry?
q.howard bowen is a large-scale cotton grower. the land as well as machinery he owns has a current market value of 4
Each point along the market demand curve shows
As Bavarian Crystal Works is only one for many crystal producers in the world market, it can wholesale as many of the decanters as it wishes for $50 apiece.
Suppose the French suddenly develop a strong taste for California wines. What happens to the demand for dollars in the market for foreign-currency exchange What happens to the value of dollars in the market for foreign-currency exchange
why is growth in average labor productivity viewed as a key factor in determining long-run living standards?
If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits. When economic profit is positive,
A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information?
q.a can of soda costs 0.75 in the united states and 12 pesos in mexico. what would the peso- dollar exchange rate be if
Illustrate what are the costs associated with this non-native species.
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