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 […]
Bangalore city is offering two adjacent plots { one for the development of industrial warehouses (W) and another for offices/commercial (C). Three developers are bidding for these two plots. Ajanta specializes in commercial office space whereas Bhoomi only develops warehouses. Finally, Eden constructs both offices and warehouses. The table below shows the private valuations for […]
If you read that a study’s finding was significant at the p < .05 level, you could conclude that there is a less than 5% probability that ______________. a. the results will translate to real world situations b. most researchers in that area would consider the finding to have clinical meaning c. the researchers used […]
Using an AD, SRAS, and LRAS curve, explain the effect of the following events on the aggregate-output, unemployment and price level both in the short-run and in the long-run. Explain the process by which the economy moves from one long-run equilibrium point to another. (a) There is an increase in oil-prices (and no intervention from […]
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