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An economy has a break-even point of $3,000. For every additional dollar earned by households, they spend 80 cents. Government purchases $596 in goods and services and also spends $742 in transfer payments. Businesses invest $53 in plant, equipment and inventory. Foreign buyers purchase $60 and buyers from the United States purchase $56 from foreign countries. (All spending and income figures are in billions.) The Unemployment Rate is 8.0% and the NRU is estimated to be about 5%.1. What is the marginal propensity to consume in this economy?2. What is the multiplier in this economy?3. What is the equilibrium level of GDP in this economy?4. What is the equilibrium level of Aggregate Expenditures in this economy?5. At equilibrium, what is the level of Consumption in this economy?6. By how much will equilibrium change if foreigners increase their expenditures by $4?
Elucidate when did we have the last major tax increase. How did the economy react to that over the next few years.
Suppose you are Chief Economist of the FCC. The Chairman has called you in to discuss a thorny issue. Two wireless broadcasters operate on adjacent frequencies.
In most developing nations, there are long lines of taxis at airports, and taxis often wait 2or3 hours. What does this tell you about the price in developing nations market?
If supply decreases along a given demand curve. Fiscal policy focuses on manipulating.
Below are events that might affect supply of money, the demand for money, or the interest rate. Explain how each event may affect these three economic variables.
Identify also explain the key features of an oligopolistic industry. Illustrate your answer with reference to an industry of your choice.
A country has the per-worker production function, y=5k1/2, where y is the output per worker and k is the capital- labor ratio. The depreciation rate is 0.15 and the population growth rate is 0.05. The saving function s=0.2Y where s is total nation..
A firm has two production plants where they produce the same product. The cost function at plant #1 is A) If the firm wants to produce Q total units of output, what fraction of Q will be produced at plant #1? What fraction at plant #2? Show all wo..
Differences between Classical and Keynesian views of economy. Explain the situations that led to development and dissemination of Keynesian economic theories.
the wages of players have raised enormously, in particular the salaries of high-quality pitchers.
Provide an example of how fiscal also monetary policies compliment or work against each other.
You manage a US based company that makes shoe laces that you sell in a highly competitive marke
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