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Question 1. What is the marginal propensity to consume?
Question 2. What are the components on which the aggregate expenditure function is based?
Question 3. What does it mean when the aggregate expenditure line crosses the 45-degree line? In other words, how would you explain the intersection in words?
Question 4. Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and long-term impacts of such policies on the economy?
Question 5. Does it make sense that wages would be sticky downwards but not upwards? Why or why not?
Suppose two countries, Canada and Mexico, produce two goods: timber and televisions. Assume that land is specific to timber, capital is specific to televisions.
Assume 35,000 cakes are produced and sold per month. Calculate James' total cost and average total cost for each section (cake and mango juice section)
Westside Bakery is planning opening a new branch in Abingdon, IL. Westside will initially sell only loaves of wheat bread. The fixed costs including building,
Where does the US Economy rank in Economic Freedom? Note whether or not you find the ranking surprising.
What the business produces or sells - Fixed and hence unlikely to vary much according to the quantity of goods produced or sold
The emergence of giant multinational corporations is said to have altered the very nature of international economic activity. In what ways do these MNCs affect the structure and pattern of trading relationships between the developed world and the ..
Elucidate what were some changes of the demand and supply fconditions that lead to the housing market bubble and collapse.
Explain how these concepts are different. Explain an example to show the difference between these two concepts.
Higher autonomous investment in a small economy will lead to higher investment (I), higher value of domestic currency (e) and lower net export (NX).
Suppose there is an increase in risk aversion by wealth holders in the sense that, other things equal, they want to hold more of their wealth in money (bank deposits) and less in securities.
Elucidate if our current U.S. economic conditions are more consistent with the Keynesian or classical economic theories.
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
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