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Q1. 1. Given that in 1995 real GDP was $6,742.1 and nominal GDP was $7,265.4, what is the value of the GDP deflator?
2. For the Keynesian model, explain the reasons why the aggregate demand curve is downward sloping?
Q2. What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?What if firms expected future returns to be very high?
Skectch the fundamental analysis of the supply and demand curve for the British pound in terms of dollars. (The quantity of pounds on the horizontal axis and the US dollars per pound on the vertical axis.
Illustrate what is shop's sales mix Illustrate what is shop's break-even sales volume in dollars. Explain how many bicycles of each type must firm sell to earn a target net income of $50,000.
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is
Why the incidence of the tax a consideration when government imposes this tax increase.
What will be the government deficit. If the government finances the deficit by issuing bonds, what amout of bonds will it issue?
Suppose price of widgets is $10. How many widgets does each firm produce. How much profit does each firm earn. Is industry in long-run equilibrium? How do you know.
Explain the argument that lower corporate tax rates can increase tax income in Kenya. Reflect on the Laffer curve in your explanation.
The companys marketplace department estimated a linear demand function for Border's picante sauce:
Draw the indifference curves that represent the following individual's preferences for peanut butter and jelly. Indicate the direction in which the individuals' utility is rising.
Draw his budget constraint in terms of S and T. What is the slope of the budget constraint and how does it relate to the relative price.
Which of the subsiquent statements is (are) generally true assuming a mound shaped distribution.
Illustrate what is the difference among the Marxist also the Value Conflict approach to social problems
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