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A. Assume that economy starts at equilibrium and the mpc= 0.75. Determine what would be the effect of a $300 increase in government spending once all the rounds of the multiplier process are complete?
b. suppose that the economy starts at equilibrium and the mpc = 0.8. What would be the effect of a 300 increase in taxes once all the rounds of the multiplier process are complete?
c. Use your answer in 4a and 4b. above to show that: "When taxes and government spending both increase by the same amount (or decrease by the same amount), the size of the deficit or surplus the government had before remains the same."
Explain how would you estimate additional dollar cost of adding sales people? How is the expected net revenue generated by adding.
At some of these schools, economics professors have lighter teaching loads than professors in some other fields. Illustrate what role do the differences in teaching loads play.
Suppose a monopolist with cost function C (Q) = 3Q selling to 2 segments of consumers where Q is total output produced by the monopolist in both markets. If the monopolist can use a single two-part tariff, compute the two part tariff that will maxim..
Based on current dividend yields and expected capital gains, expected rates of return on portfolios A and B are 11 percent and 14%, respectively. The beta of A is 0.8, while that of B is 1.5.
Solve for the price and quantity that the monopolist would choose to maximize its profit under the more advanced technology. And also calculate the resulting profit.
Elucidate the difference among a monopoly and an oligopoly, the welfare effects of monopoly, cost advantages that create monopolies, government actions that create monopolies, and government actions that reduce market power.
The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold.
Elucidate why not the change in the price of military goods will be reflected in how the United States measures inflation.
Elucidate how the price level will be affected by these expenditures in the short-run. Explain how GDP is affected in the long-run.
Develop an exponential smoothing forecast with smoothing constants α =0.1 and 0.3. What would be the forecast for week 11?
Illustrate what are economic influences which affect the organization in a negative way.
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
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