"1.Suppose the government spends an additional $100 billion in expansionary fiscal policy. Assume the marginal propensity to consume is 0.75. Show the effect on GDP with: a. 5 rounds of changes in spending
b. A calculation with the fiscal policy multiplier
2. Suppose the government increases taxes by $80 billion in contractionary fiscal policy. The MPC is still 0.75. Show the effect on GDP with:
a. 5 rounds of changes in spending
b. A calculation with the fiscal policy multiplier
3. Assume the scenarios in questions 1 and 2 happen at the same time. This time, assume the MPC is 0.9. What is the effect on real GDP?
4 Suppose that real GDP increased by $100 billion after the government raised taxes and increased spending at the same time. If taxes were raised by $30 billion and the MPC is 0.8, how much was spending increased by?"?

What is product differentiation, and how can it be achieved ? what is product positioning? what conditions would head to head product positioning be appropriate?

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Carrie works at a canned food production factory. the government wanted to give a boost to the salt industry, so it lined up numerous subsidies and tax exemptions for the sector. this lead to a decrease in production costs. this also meant that consumers could access canned foods at a lower price, which lead to an increase in demand for the product. which kind of economic system is carrie’s company dealing with? carrie’s company is dealing with a/an economy.