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On the planet Omicron Persei 9, economists estimate the following:Output (Income) ........$2,000Government Purchases ......$200Net Taxes ............$200Planned Investment Spending ....$300Citizens consume 75% of their disposable income (marginal propensity to consume is 0.75).
a. Find consumption and planned aggregate expenditure.
b. Carefully explain why and how this economy is not in equilibrium.
c. Explain what business will do in response to this disequilibrium.
d. Explain what, in turn, will happen to income.
e. A government official suggests increasing government purchases by $100.
What is the main benefit of this proposal?
What is the main drawback of this proposal?
Define and explain the terms decision management and decision control. Under what situations might it be optimal to make one individual responsible for both decision management and decision control?
Would it be in Sue and John's joint interest to hire the engineer? Explain. Why should Sue pay for the engineer? Isn't it John's responsibility to assure that he will comply with the contract?
Who will win? Why? Fully explain your answer, citing, defining and applying the correct law?
1.Both short run and long run average cost curves may be shaped, but the explanations for their respective shapes are quite different. Explain this statement.
Compare the relative merits of using GNY statistics with those of various basic needs indicators when assessing both the level and the rate of a country's economic development.
As the manager of Hidden Fence Company, what might you do to convince a worried prospective customer that opportunistic behavior with respect to battery prices is not a likely occurrence?
General Cereals, (GCI) produces and markets Sweeties!, a popular ready to eat breakfast cereal. In an effort to expand sales in the Secaucus,
Discuss two problems that arise in estimating cost curves. Suppose that the marginal product of labor is: MP = 100 - L, where L is the number of workers hired.
Is the Eurozone an optimal currency area? Explain your answer.
Evaluate the impact of the proposal to cut prices on (i) total revenue, (ii) total cost, and (iii) total profits. B. If coverage variable costs are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed ..
A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95.
The shares of Hod corporation which are at present trading at $12.50, have just paid a dividend of $1.50 / share. Based on investment analysts, the historical growth rate for Hod's dividends of 2 percent per year
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