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Question: When there is a shift in autonomous expenditure, why is there a multiple expansion of income and real GDP? Trace the multiplier effect through the first four rounds when there is an increase in autonomous expenditure of $40 billion and the marginal propensity to consume is 0.75.
You can return any item at Home Depot within 90 days of purchase , no questions asked. This policy can hurt short-run profits. Does this mean Home Depot is not a profit maximizing firm? why?
What are institutional arrangements and why might they have a crucial role to play in determining a nation's development prospects? Illustrate your answer by referring to the experience of one country.?
a) Draw a graph of the Aggregate Supply & Demand model in long-run equilibrium. Lable all curves, axes, and the equilibrium output and price.
Elizabeth Corday, a quality control supervisor for Surgery Products, Inc., Compute the unit cost growth rate using the constant rate of change model with continuous compounding.
Is there a cost for economic development?
Rodrik's Trilemma says we can have two of the following three:
What is the mixed economic system that includes some government protections, provisions, and regulations to adjust the free enterprise system
Analyze What is the Marginal Rate of Transformation impact? What is the labor-abundant country? What is the capital-abundant country?
Discuss economic theory related to the quote above. Be sure to include a definition of exports and the way in which exports are counted in the measurement of Gross Domestic Product (GDP) within your discussion.
Are the Marshallian demand functions scale invariant (i.e. homogeneous of degree zero)? Are the goods Giffen?
Consider an industry with a small number of firms with market power. Suppose they sell identical products and have identical cost of production. If each firm posts a price without knowing the prices
(a) Calculate the values of the real interest rate, the price level, consumption, and investment for the economy in general equilibrium. (b) Now suppose government purchases increase to 350 with no change in taxes. What will be the real interest ..
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