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Assume a simple keynesian depression economy with a multiplier of 4 and an initial equilibrium income of 3,000. Saving and investment equal 400 and assume full employment income is 4000.
a) What is the MPC and MPS?
b) How much would government spending have to rise to move economy to full employment.
c) assume the government plans to finance any government spending my raising taxes to cover increase in spending. How much will government spending and taxes have to rise to move economy to full employment?
d) From the initial equilibrium, if investment grows by $100 what will be the new equilibrium level of income and savings?
Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.
What do the tablet markets and the cell phone markets have in common What are the different strategies for each of the four ps that tablet companies could use as a result of the similarities Do you think they should why or why not
What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in quantity? Which product experiences a larger change in price?
The real and financial frameworks, that Ireland's unemployment rate will remain stubbornly high over the coming years, perhaps falling somewhat only through rising emigration.
Can you illustrate through using supply and demand graphs what happens to the equilibrium price and quantity in each of the following conditions.
What are the expected benefits of this plan? do you thing it gonna answer all the questions demanded in the economic sector?
Select an economic problem mentioned in the textbook as the topic for a policy recommendation. Write a six to eight (6-8) page paper modeled as a policy recommendation in which you:
Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end ..
the manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2.
What is inflation and What are the causes of inflation? Is inflation desirable and what can be done to control inflation in a market economy?
Pamela Sue, proprietor of Heartland Supermarkets which would like to raise her current sales of corn from 250 bushels per week to 500 bushels per week.
Which nation has a comparative advantage in clothing and by what amount.
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