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Consider the impact of an increase in thriftiness in the Keynesian-cross analysis. Assume that the marginal propensity to consume is unchanged, but the intercept of the consumption function is made smaller so that at every income level saving is greater. This will:
A) Lower equilibrium income by the decrease in the intercept multiplied by the multiplier.
B) Lower equilibrium income by the decrease in the intercept.
C) Raise equilibrium income by the decrease in the intercept.
D) Raise equilibrium income by the decrease in the intercept multiplied by the multiplier.
Why might a perfectly competitive market firm be willing to run at a loss in the short run? The assumptions of a PCM firm should be outlined in order to end that the PCM firm i
explain the structure of the economy and its impact on the gdp of sountry.
Following on papers by Pacala and Socolow,1 The Carbon Mitigation Initiative at Princeton University, http://cmi.princeton.edu/ has summarized carbon stabilization strategies at
An electrical company audit indicates that motor consumption is 4x106 kWh per year. By upgrading to high efficiency motors a 10% savings can be made. The additional cost for the mo
The GDP deflator in Economy land is 200 on January 1, 2010. The deflator rises to 242 by January 1, 2012, and to 266.2 by January 1, 2013. a. What is the annual rate of inflati
it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run
MEC and MEI curvs and their role in economics
Ask question #impotance of capital output ratio#
1.the AD curve represents at the same time the demand for goods, money and labor in the economy 2.in the AS-AD model, higher competition among producers leads to a medium run equil
I would like to know if you guys take up online tests?
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