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Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in individual income taxes. Will these actions by Congress expand or contract the economy or are they just useless actions?
Explain how the concepts of total utility, marginal utility, and utility maximization.
Problem - Income Elasticity of Demand, Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5
Should a country's income be distributed to its members based on their contributions to production of that total income or according to the member's requires?
Explain how can you avoid the weakening dollar due to its depreciation as a result of inflation by weakening the economy by raising interest rates.
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.
Expalin why do many economists believe that the market system is the most efficient economic system for allocating resources.
In 1996 Congress increased minimum wage from $4.25 to $5.15 every hour. Some people advise that a government subsidy could help employers finance higher wage.
Sprint acted as a well-managed business that takes the actions necessary to remain competitive in a very competitive marketplace.
Southwest Physicians, a medical group practice, is just being formed. It will need 2 million dollar of total assets to generate $3 million in revenues.
In the light of the Ricardian model, how might you evaluate the claim by developing nation that they are at a disadvantage in trade with powerful industrialized countries.
What are strengthen or weaken the argument that monetary policy should be the primary tool for smoothing the business cycle.
Some economists did a study of market for economists in Britain. They discover that the quantity demanded was about 150 per year, and that the quantity supplied was about three hundred per year
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