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The marginal propensity to consume and the marginal income tax rate are 0.9 and 1/3, respectively. The budget deficit is observed to increase by 90.
a. What change in investment would account for this?
b. What change in government spending would account for this?
These actions have caused violent protests. Should the U.S. follow their example? What would be the consequences of just printing more money to pay the debts of the government?
QuadPlex Cinema is the only movie theater in Idaho Falls. The nearest rival movie theater, the Cedar Bluff Twin, is 35 miles away in Pocatello. Thus QuadPlex Cinema possesses a degree of market power. Despite having market power, QuadPlex Cinema i..
A growing economy means that the economy is producing more and more "stuff", either because it has more resources (workers), or uses those resources more productively (smarter, better workers, working with better machines and systems).
According to a study, the price elasticity of shoes in the United States is 0.7 and the income elasticity is 0.9a. Would you suggest that the Brown Shoe Company cut its prices to increase its revenue b. What would be expected to happen to the total q..
State the commodity in which each country has absolute advantage and identify the commodity of comparative advantage for each country and indicate the gains to Zambia and Tanzania if the two countries exchanged 6 barrels of oil for 6 yards of cloth.
Peterson has just completed his study from college and is now a junior member of the staff of a United State senator. He has been asked to draft a statement detailing the senator's position on the economic growth implications of immigration
The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a developing country, producing food and clothing at maximum capacity.
Find (algebraically) the points where the MC function intercepts the AVC and the ATC functions. (Hint: at one interception point MC = AVC and at the other MC = ATC)
High Mark Industries sells solar water heaters to households interested in lower energy bills and sustainable energy.
Use the Expenditure Equation for GDP.find the values for each sector for the years 1929 or 1933. Determine the percentage change for the two years.
if unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors by themselves have on export trade and why
Compare the automotive manufacturing industry of today to the automotive manufacturing industry of the 1950s. Applying the enconomics of price and output, what is the difference between the industry of today and that of the 1950s.
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