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The consumption function is where the marginal propensity to consume MPC equals .75 (out of an additional $1 in national income 75 cents is consumed). The government increases its purchases by $100 million, and investment and net exports do not change.
Give: (a) The Keynesian multiplier.
(b) Total increase in Y.
By signing a trade agreement illustrate what does this imply as regards international trade theory of the Ricordian model.
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.
The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. As a manager, what are some practical things you could do to raise marginal product per employee th..
Your uncle Bob has been following a home-made investment strategy. Over a period of five years, he made ten semiannual purchases of stock for $1,000 each. At the end of the five years, he sold all the stock for a total of $12,000. What effective annu..
Imagine that you are part of the marketing management team at Home Plus, a regional discount big-box retailer who competes with Wal-Mart and Target. Home Plus currently focuses on offering a broad range of discount consumer goods, from small home fur..
Compute the marginal tax rate as income rises from $100,000 to $200,000. Compute the corresponding marginal tax rates for the regressive and progressive tax systems.
If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to explain the Leontief paradox? If this explained the paradox, would it suggest that any given U.S. trading partner stood a better chance of conformin..
When conducting a rate of return (ROR) analysis involving mutually exclusive alternatives, the first step is to:
In what specific ways does Becker's model of the allocation if time differ from the simple work-leisure choice model? Compare the functioning of the income and substitution effects in each of the two models. Do the two effects have the same impact up..
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 4%, the growth rate of the velocity of money is 9% and that the real economic growth rate i..
Illustrate what principles should guide policy makers. Should they cut spending and raise taxes to reduce the national debt over time. Or does the level of the national debt really matter.
A country faces two petroleum product markets, foreign and domestic and there is no resale between the two markets. The inverse demand curves for the domestic and foreign markets are expressed as follows: Domestic: Pd = 100 - 15Q Foreign: Pf=60 - 2.5..
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