Suppose the economy is in a recession. policymakers estimate that aggregate demand is $100 billion short of the amount necessary to generate the long-run natural level of output. that is, if aggregate demand were shifted to the right by $100 billion, the economy would be in long-run equilibrium. a. if the federal government chooses to use fiscal policy to stabilize the economy, by how much should they increase government spending if the marginal propensity to consume (mpc) is 0.75 and there is no crowding out?

What is the connection between digital transformation and customer experience

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.