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Q1. If the AD shortfall is $800 billion and the MPC is 0.8,
a) Explain how large is the desired fiscal stimulus?
b) Explain how large an income tax cut is needed?
c) Alternatively, Explain how more more government spending would achieve the target?
Q2. Which characteristic of competitive markets permits society to answer the illustrate what to create question efficiently?
Q3. The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive industry will earn normal profits. If all firms will only earn a normal profit in the long run, why would any firms bother to develop new products or lower-cost production methods? Elucidate.
Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome.
In which directions are they pushing or pulling the U.S. economy. Also, do you think the gap between real GDP and potential GDP will widen or narrow.
Explanation and Analysis Identify changes in market conditions and their effect on equilibrium price and quantity for the following events
The United States has an absolute advantage in making many goods, such as short-sleeve cotton golf shirts. Why do Cost a Rica and Bangladesh make these shirts and export them to the United States?
Compute the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.
What is the amount of excess reserves in this commercial banking system? What is the maximum amount the banking system might lend?
q.anthony figueroa is a cpa who works for an accounting consulting firm. his annual salary income is 70000. anthony is
a disgruntled college graduate sues her school on grounds that her tuition payments did not land her the good job she was expecting when she started there. Courts invariably throw out cases like hers.
Illustrate what are the correesponding average tax rates in the regressive and progressive tax systems.
How many units of x1 and x2 will the firm use to produce y units of the output? What is the cost of poducing y units of the output for this firm?
The banks hold no excess reserves, Illustrate what will happen to the total money supply. How did you reach your answer.
Illustrate what is projected credit markets. How do you use this to make business decisions. Also how would investment or returns on excess cash affect a auto business.
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