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If an economy's real gap increases from 100 billion to 150 billion and at the same time its imports increase from 40 billion to 50 billion what is the marginal propensity to import?
Explain the difference between sticky wages and sticky prices and how these two ideas explain the sloped short run aggregrate supply curve and why does it not affect the long term supply curve?
Consider the following social welfare function for a small community of five people. SW = Ua(Na, Ca, C~a, Pa) + Ub(Nb, Cb, C~b, Pb) + Uc(Nc, Cc, C~c, Pc) + Ud(Nd, Cd, C~d, Pd) + Ue(Ne, Ce, C~e, Pe) where: N = noncompetitive goods C = competitive good..
Point Production of X Production of Y A 0 40 B 3 36 C 6 28 D 9 16 E 12 0 The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of increasing the production of X from 0 to 3 units?..
One of the proclaimed benefits of free market capitalism relative to other economic systems or government production
The reading summarizes powers granted by the Constitution - some powers are granted to the Federal government, some powers are granted to state and local governments, some powers are shared. After reviewing the assigned material on these powers, choo..
inequality than low-income countries, however this does not always hold true. What could cause a low-income country to have low-income inequality?
Some finance experts advise consumers not to worry about rising gasoline prices, the cost of which can easily be covered by forgoing one takeout meal a month, but to worry about how high energy prices will affect the rest of the economy. For example,..
What output level is short-run marginal cost minimized?
Given the budget equation 5M + 10P = 100, where M represents movies and P represents pizza, the slope of the budget line is
Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? .
Describe the modified internal rate of return (MIRR) as a method for deciding the desirability of a capital budgeting project. What are MIRR's strengths
Explain and show graphically using AD-AS diagrams how each of the following would (separately) affect the economy first in the short run and then in the long run. Assume that Canada is initially operating at its full-employment level of output, that ..
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