McConnell Brue Flynn 19e
What relationship does the MPC bear to the size of the multiplier
With the general equilibrium framework in place, the stage is now set for introducing fiscal and monetary changes and analysing their effects on the general equilibrium. We will first introduce a fiscal change in the form of increase in deficit-financed expenditure, a
For the firm, the major goal of profit sharing plans is to:
State main sources of demand for foreign currency? Answer: The four main sources of demand for foreign currency are as follows: A) To buy services and goods from other countries. B) To send a gift abroad.
Describe functions of central bank? Answer: (A) Issue of currency: Central bank is the only authority for the issue of currency
Illustrate, why is tax not a capital receipt?
Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.
Explain the main features of Harrod - Domar Growth model. How does the Harrod Domar model explain the occurrence of trade cycles?
What is the impact on income or output and price of excess demand (Inflationary gap)? Answer: In the condition of excess demand (that is Inflationary gap) there wil
use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges?
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
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