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Show analytically and show graphically that, in the Keynesian consumption function, the average propensity of consumption is always bigger that the marginal propensity when the autonomous component of consumption is positive.
By using this result demonstrate analytically and show graphically why the average propensity of consumption decreases as income increases, whilst the Marginal propensity of consumption decreases as income increases, whilst the marginal propensity does not change with income
In a few weeks Professor Smith will be taking his daughter Attilla to the State Fair. Calculate the Marginal Rate of Substitution (MRS).
Some politicians in countries that are the recipients of large numbers of immigrants advocate adopting laws requiring immigrants to learn the local language within a specified period of time.
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
It cannot be as the inflation by definition real wages have factored inflation in.
Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
Explain how does the democratic political system lead politicians to emphasize points outside the production possibility curve.
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
Explain how will different cultural perspectives of a region impact your global business operations.
Ellucidate why is it that wages are not dropping instead they are inching upward on a year to year basis.
Expalin why did not Keynesian theory provide successful solutions to the German economy where unemployment currently around 14%.
Black Diamond Tennis & Golf Club offers golf and tennis memberships to residents of Black Diamond, Ohio, in which there are 2-types of families:
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