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Full employment GDP is $11,000. Equilibrium GDP is $10,000. The marginal propensity to consume is.5. What could the government do to achieve full employment and price stability using a) government purchases and b) taxes?
List three causes of the Great Depression according to Powell, including monetary actions by the Federal Reserve Bank of New York in 1927-1929, explained what caused bank failures during 1929-1933 and explain why the money supply contracted by one-th..
Apple Computer wants to have $2.1 billion available 5 years from now to finance production of a handheld “electronic brain” that, based on your behavior, will learn how to control nearly all the electronic devices in your home, such as the thermostat..
Explain the effects of monetary policies on the economy's production also employment
You are selected by the board of Alderman in your hometown to help the lawmakers in establishing a program to raise new revenue through excise taxes. Why would elasticity of demand be important to you in determining the products on which taxes should..
Discuss the possible impact of labour unions on the natural rate of unemployment. Explain why a university degree can be treated as a form of capital.
Suppose that a biotech firm makes diagnostic tests and has a fixed-proportions production function in which one unit of output (diagnostic test) is produced using one worker and two units of capital (machines). Draw 3 isoquants for this production f..
Explain what types of biases arise in the different approaches to understanding consumer demand and behavior.
Describe how the activities influenced your awareness and understanding of the interrelationship between business and society and describe how the readings and journalling activities influenced your views on workplace ethics and corporate social re..
suppose that a farmer has two very different 100-acre plots of land. suited for growing rice than corn one is very wet
What is the cost to Lavaland of moving from point E to point F. Illustrate what general economic principle is being illustrated.
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 4%, the growth rate of the velocity of money is 9% and that the real economic growth rate i..
Suppose the market for cigarettes is characterized by the following information: Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium. Calculate the tax revenue in the post-tax equilibrium. Calculate the cha..
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