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If taxes were cut by $1 trillion and the MPC was 0.75, by how much would total spending (a) Increase in the first year with two spending cycles? (b) Increase over five years, with two spending cycles per year? (c) Increase over an infinite time period?
John advertises his used car for $5,000 in the newspaper. He would be willing to sell his car for as little as $4,000. Bill values the car at $4,800 but offers $4,500 for it and John accepts. How much producer surplus is created by this trade? How mu..
Now assume that oil prices increase. After the increase in oil prices, the inflation rate in the economy is 9%. Now assume that the federal government decides to increase government spending in order to combat the rise in oil prices. After the increa..
q.the wilson companys marketing manager has determined that the price elasticity of demand for its products equals
Illustrate what will be the consumer consumption of gasoline now and how much will be the amount of rebate.
Illustrate what are the implications of savings and population growth at steady a state in the Solow's neoclassical growth model.
Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income? Do we as citizens have an ethical responsibility to help the po..
Indifference curves- Are contour lines only of a linear utility function?
q.the following equations describe a small open economy. figures except the parameters are in millions of dollars. c
Be sure to include an analysis of the stages of production and describe why of the three stages, only one stage is rational for the firm.
Evaluate a combined cycle power plant on the basis of the PW method when the MARR is 12% per year. Pertinent cost data are as follows: (5.3) Power Plant (thousands of $) Investment cost $13,000 Useful life 15 years Market value (EOY 15) $3,000 Annual..
The marginal propensity to consume in an economy is 0.8. If the price level is fixed, a $400 increase in net exports would be expected to increase real GDP by how much?
How did Maynard Keynes propose to address the Great Depression? Did it differ from the Classical views? How does it compare to Monetarism?
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