Description 1. Describe the marginal propensity to consume and show how it is computed. 2. Discuss how spending and output influences equilibrium in a simple model where aggregate expenditure = consumption. 3. Describe how unplanned inventory can influence equilibrium in the model where AE=(C+I+G+(X-M)) 4. Briefly describe the expenditure multiplier and state how it is […]
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Check that the gap between total cost and total variable cost is the same at all output levels. Explain why this relationship is so important and demonstrate clear insightful and critical thinking
· Assess data (in the table below) related to a small lawn mowing business. Angela hires students at $40 a day to mow lawns. Regardless of the number of students she hires, Angela leases five lawn mowers for $200 a day. The following table gives the daily output: Labor (students per day) Total Product (lawns […]
