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Suppose a government is established in a country where none previously existed. The government spends 80, financed by borrowing, to provide public services. If autonomous consumption plus investment is 210 and the marginal propensity to consume MPC = 0.8, what are the equilibrium real GDP values before and after the government is established?
a) What is the equilibrium real GDP value before the government is established?
b) What is the equilibrium real GDP value after the government is established?
suppose more home owners cant afford their mortgage and gave up their houses. In the context of the market quantity supplied and quantity demanded diagram, what will happen to both markets in term of Q's, P's and equilibrium.
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Compute the expected utility of each project and identify the preferred project according to this criterion.
Airline alliances are major global partnerships that typically secure antitrust immunization, develop code share flights, coordinate frequent flyer plans,
Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate.
Maritime Insurance Company offers insurance policies for recreational boats. A typical policy will pay the replacement cost of $25, 000 if the boat is a total loss. If the boat is not a total loss but the damage is more than $10,000, the policy pa..
Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1) reason. Explain why depositing cash into a checking account does not change the money supply. Provide at least one (1) supporting..
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Elucidate how will looming fears of a recession expected to decrease consumers incomes by 4 percent over the next year impact the quantity of coffee Starbucks expects to sell.
Assume the new leadership in Congress decides to repeal some of the tax breaks granted to large businesses during the past several years.
Assume the market for computer chips is dominated by two firms: Intel and AMD. Intel has discovered how to make superior chips and is considering whether or not to adopt the new technology.
Consider an air basin with only two consumer, Huck and Matilda. Suppose Huck's demand for air quality is given by q_h=1-p where p is Huck's marginal willingness to pay for air quality. Similarly, Matilda's demand is given by q_m=2-2p. Air quality ..
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