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Q1. Why would the following investment expenditures increase as the interest rate declines?
a. Purchases of a new plant and equipment
b. Construction of new housing
Q2. What are the components of aggregate expenditure? What determines the slope of the aggregate expenditure line?
According to Global Insight, a Massachusetts economics consultancy, what will happen if oil prices remain in the range of $65 to $70 per barrel for a couple of more months?
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.
Illustrate what are equations for IS and LM curves. Illustrate What is equilibrium level of income and interest rate.
In contrast to a socialist economic organization, how would a capitalist system differ. Consider who owns capital (means of production) in two models.
Elucidate why would a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
Assume that neither country experiences population growth nor technological progress as well as that 5 percent of capital depreciates each year
Indicate the various components of GDP when it is derived by the resource cost-income approach. Calculate using the resource cost-income approach.
Numerous times in the lectures labelling the vertical axis as euro per $ and the initial supply and demand curves labelled with 12/07, Label this initial point as point A.
Explain the debate on equal rights, especially as related to marriage, for gay men and lesbians continues. Would you classify this as an issue or as a problem.
Hardwood Cutters presents seasoned as well split fireplace logs to consumers in Toledo, Ohio. The low-cost provider company is of firewood in market with fixed costs.
The US put a specific tariff of €10 on European widgets. Calculate the new equilibrium quantity and price as well as the new Monopoly's profit.
The short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum used in producing tires causes the marketplace.
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