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Suppose the Council of Economic Advisors (CEA) hired you as an Economist (Economic consultant). The head of the council tells that she believes the current unemployment rate of 9 % is too high. They would like to increase real aggregate output (RGDP) . She wants to know what policy to pursue to increase RGDP by $2 trillion ($2,000 billion) . The best estimate she ga ve you is the value of MPC = 0.8 . Which of the following policies should you recommend and why? You need to show your work of estimations and explain in words. 4 pts a. Increase government expenditure (G) by $400 billion b. Reduce taxes by $400 billion c. Reduce taxes by $400 billion an d increase govt. expenses by $200 billion d. Increase G by $5 00 billion
Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds pr..
Sam sells property to Betty and delivers Betty a deed that says "This property is conveyed to Betty so long as she never operates a bar on the premises." If she operates a bar on the premises, Sam Seller may take possession of the property.
The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.
Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.
Every alternative has a value for bill as described in the subsequent. Illustrate what is bill's prospect cost for attending class
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
Consider a facility that has a 30-year life, a replacement cost of $1 million, and an interest rate of 5%. Calculate the animalization factor. Show your work/ calculations using the formula. Based on the animalization factor, calculate the annual cos..
how must you consider the issues regarding diminishing marginal returns and economies of scale.
Describe the purpose of ecumenical services and interfaith initiatives. What importance, if any, does dialogue between the various faith traditions have? Find one example of either an ecumenical service or interfaith initiative in your town or city a..
If this price floor is implemented, how many units of pork will the government are forced to buy to keep the price at $2.25.
Evaluate how average, total, and marginal costs change as the output of a good or service of your choice increases. Can economies of scale be maintained despite high start-up costs.
Costs for maintenance of buildings at an industrial complex are expected to be $2000 in year three, $2500 in year four and amounts decreasing by $200 per year thereafter through year nine. at an interest rate of 10% per year, calculate the present wo..
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