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Suppose the consumtion function is ( C = $500 billion + 0.9Y) and the government wants to stimulate the economy. By how much will the aggregate demand at current prices shift intially (before multiplier effects) with
(a) A 50 billion dollar increase in government purchase?
(b) A 50 billion dollar tax cut?
( c) A $50 billion dollar increase in income transfer?
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
GDP (You may use the purchase power parity figures.) Per capita GDP, GDP growth rates for the past 5 years, Percentage of GDP spent on military expenditures,Population and population growth rates for past 5 years
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces, and it faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses ..
Do analysis of the economic and ethical implications of the article event.
work decisions are based upon a comparison of priviate cost and the private benefit. The excludedable benefit of addtional work is measurable as the change in what options - income less transfer payments lost, gross income, net tax payments, adjus..
assume youre advising the newly formed russian government formerly the russian ssr in 1991 regarding their policy
Suppose the Bulyanhulu mine always producesat the scale where its marginal cost equals the selling price ofgold. Its marginal cost curve however, shifts with changes inelectricity process, wages and other factors.
Assuming that labor accounts for 80% of country Y's gross domestic product, compute immigrant surplus as a share of national income.
Find the uniform price if there is two customers.Type A who will only pay 10.00 dollars for a single unit of the good, and Type B who will only pay 8.00 dollars for a single unit of goods.
Illustrate rate of growth in fuel costs justifies going ahead with the insulation plan? Make sure that the rate of growth and the discount rate are aligned in terms of periodss.
Would an attempt to decrease the budget deficit not increase it. Does today's deficit not create tomorrow's surplus.
Use the firm's isoquant-isocost diagram and the firm's marginal cost curve to explain and illustrate the output and substitution effects of a decrease in the price of labor.
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