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Q. If the price elasticity of demand is 1.5 and a firm raises its price by 20 percent the quantity sold by the firm will ceteris paribus
1. What will the multiplier be When the MPS is 0, .4, .6, and 1?
2. What will it be when the MPC is 1, .90, .67, .50 and 0?
3. How much of a change in GDP will result it firm increase their level of investment By $8 billion and the MPC is .80?
What price are individuals with $5,000 in the bank willing to pay for the insurance. Will those with $5,000 in the bank voluntarily purchase insurance.
This deviation from the classical dichotomy and the Fisher effect is called the Mundell-Tobin effect. Explain how might you decide whether the Mundell-Tobin effect is important in practice.
Explain using a diagram how a tax cut in period two affects consumption in both periods. Assume that average consumer does not believe that he/she or anyone in family will ever have to pay higher taxes in future to offset current cuts.
Pick a policy issue which illustrates bootleggers and Baptists story. Who is who. What enables persistence of relationship. You may find this podcast helpful in understanding concepts and providing examples.
Equivalence of moving average and exponentially weighted moving average control charts. Show that if l = 2/(w + 1) for the EWMA control chart, then this chart is equivalent to a w-period moving average control chart in the sense that the control l..
suppose a student athlete has the opportunity to earn $800,000 next year playing basketball, $700,000 next year playing basketball or $0 going to college. what is the opportunity cost of going back to college
Suppose the entire civilian labor force is 20,000 people and the number of unemployed is 2,000 people.
A small-volume foreign auto maker limits the number of its franchised dealers in the United States and gives them exclusive territories. There are also non-dealers who have no official connection with the manufacturer.
elucidate what will be the effect on the world price of wool. How does the marginal revenue to Australia from an extra unit of wool relate to the price of wool.
The Federal Reserve Board is considerining changing its target inflation rate. However, they are concerned about the immediate effect on inflation. Find the sensitivity of equilibrium inflation to a change in the Fed's target inflation rate in the..
Monetary expansion causes the current account balance to increase in the short run. Discuss this statement. Is the same true for fiscal expansion?
If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied?
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