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The marginal propensity to consume (MPC) equals 0.3, and the marginal propensity to import (MPm) is 0.1. If Americans suddenly increase their desire for European cars and the MPm increases to 0.3, on the basis of the Keynesian model of output determination:
A) the multiplier will rise by 20% of its original value.B) an increase in government spending of 100 will have no effect on GDP.C) an increase in GDP of 100 will cause imports to rise by 30.D) all of the aboveE) none of the above
Illustrate which of the following statements are examples of positive economic analysis. Which are examples of normative analysis.
The demand function for VCRs has been estimated to be Qv = 123 - 1.7Pt + 46 Pm - 2.1Pv -5M, where Qv is the quantity of VCRs,Pt is the price of a videocassette, pmis the price of a movie, Pv is the price of a VCR, and M is income.
Elucidate the similarities and differences of the breakup of the AT&T/Bell System antitrust problems.
These costs are depends on a budgeted volume of 80000 units developed and sold every year. Lafluer uses cost-plus pricing methods to set its target selling price.
Explain how would the edgeworth box change. How would the production possibilities frontier change as a result
Suppose the relationships hold true and given performance below, what salary would you estimate for each player in 2006.
Explain why do some regions promote unrestricted trade within their region but restrict trade that crosses the region's boundaries.
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
Explain how regular and lasting were the past trends. What are the chances of these patterns are changing. How accurate is the historical date that we use in time series.
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
Elucidate is the fiscal policy expansionary or contractionary.
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
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