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The following statements regard the role of spending money in the economy. Label each true or false.
1. Since the overall economy is not doing well during a recession, government spending typically decreases as a percentage of gross domestic product (gdp).
2. The U.S GDP measures spending carried out by consumers, investors, and goverments in the US but not the spending of foreigners, since they are not part of the US.
3. The government can help guide the economy out of a recession by spending on programs which create jobs, such as investing in infrastructure.
4. The US does not have the highest government spending per person in the world.
Illustrate what is area of employment why has this shift occurred in illustrate what direction would shift in labour supply and demand go. Illustrate what would be its effect on equilibrium of labour market.
Should society attempt to equalize income or economic opportunities? Are the issues of equity and equality in the distribution of income synonymous? To what degree, if any, is income inequality equitable?
McKee Corporation has annual fixed costs of $12 million. Its variable cost ratio is 0.60. Determine the company’s break-even dollar sales volume. Determine the dollar sales volume required to earn a target profit of $3 million.
Converse why an organization in an uncertain environment requires more horizontal relationships than one in a certain environment
Elucidate why the general level of wages is higher in the United States and other industrially advanced countries. What is the single most important factor underlying the long-run increase in average real-wage rates in the United States.
Consider the following investment opportunity: With interest at 7%, what is the bene?t–cost ratio for this project?
A firm uses labor and machines to produce output according to the production function f(L, M) = 4L^1/2 M^1/2 , where L is the number of units of labor used and M is the number of machines. The cost of labor is $40 per unit and the cost of using a mac..
Answer this question based on the payoff matrix above for a duopoly in which the numbers indicate the profit from following either an international strategy or a national strategy. Refer to the above table. If firm A chooses an international strategy..
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in that society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social..
When Satelite Glass switched from hourly wage to piece rate, what happened to the workers' productivity? What are the sources of this productivity change?
Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, the dividend is expected to grow at a rate of 5% per year, and the rate of return investors require to buy Coca-Cola’s stock is 8%. Calculate the price per share for Coca-Cola’..
Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?
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