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In a closed economy, marginal propensity to consume is 0.6. If the economy opens up to the world and marginal propensity to import is 0.4, using the Keynesian model of output determination, the multiplier will:
A) increase by half of its original value.B) decrease by half of its original value.C) decrease by a fourth of its original value.D) now equal zero.E) now equal infinity.
Suppose demand for the firms watches falls permanently to P = 20 - Q/20,000. In view of this fall in demand, what output should the firm produce in the short run? In the long run? Explain.
Assume that, from an initial consumer equilibrium position, the price of good X falls-explain how and why the consumer's relative consumption of two goods will change.
Explain how do you go about drawing an indifference for such a utility function.
As per the Solow model, how would each of the following affect consumption per worker in the long run.
In an article about the financial problems of the USA today, Newsweek reported that the paper was losing about $20 million a year.
In a two play, one shot simultaneous move game every player can select strategy A, each earns a payoff of $500. If both players choose strategy A,
Illustrate why would you be reluctant to advise that your country increases its money supply.
I understand the three types of unemployment are: frictional unemployment, seasonal unemployment, and structural unemployment.
Find out the profit maximizing level of price and output. Discuss an alternative regulatory regime, and discuss the merits of both.
Discuss market trends that General Motors organization/industry will face and address(discuss) how their prices and technology will change or will not change, and why.
Wednesday the price changed to 1.8275. Compute your profit-loss in USD on Tuesday and Wednesday.
Illustrate what interest it should be used in project analysis calculations.
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