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Suppose that aggregate price level is constant, interest rate is fixed, and there are no taxes on foreign trade, how much will the aggregate demand curve shift and in what direction if the following events occur?
A. An autonomous increase in consumer spending of $25 billion; the marginal propensity to consume is 2/3.
B. Firms reduce investment spending by $40 billion; the marginal propensity to consume is .08.
C. The government increases its purchases of military equipment by $60 billion; the marginal propensity to consume is .06.
Illustrate what are those key objectives and what are the key tools does the Fed use to achieve those objectives.
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is.
Explain how do you solve for a, b, c, e in the equations: Qd = a-bW and Qs = c+eW when you know the equilibrium wage (or price) is $4, there are 100,000 people employed, Elasticity of demand is equal to -0.4 and Elasticity of supply is equal to 0...
Assume you are a stock market analyst specializing in the stocks of theme parks, and you are examing Disneyland's stocks.
Illustrate what is the difference among National Income, Gross National Product, and Gross Domestic Product? Why do most countries now use GDP as a measure of national output?
Explain why you would be more or less willing to buy a share of Apple Computers stock in the following situations:
Explain how the aggregate expenditure function shifts in response to changes in each of the following variables:
A rise in corporate income taxes increases the investment in physical capital for any given interest rate.
If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75, X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
Brokers incurred $450,000 out of expenses as well as will give 21,000,000 of the persue to the small firm they are underwriting
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
Explain why is it difficult to determine who is and who is not in the labor force. What consequence does this have, if any, for the labor market indicator.
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