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VERTICAL EQUITY: A system of taxes that treats unequal people unequally. In other words, if you make the less income than someone else and pay fewer personal income taxes, then we have vertical equity.

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Lesson 4: Production Possibilities | Unit 5: Investment Page: 21 of 24

Topic: Bundle Choices: E <=PAGE BACK | PAGE NEXT=>

Now with bundle E (410 jogging shoes and 4 calibrators).
  • Producing 4 calibrators has added to the economy's quantity of capital.
  • The cost of these 4 calibrators is 40 pairs of shoes.
  • Expanding the quantity of our capital has increased resources and shift the production possibilities curve.
  • Tomorrow's production possibilities curve is farther out than today's curve. There is growth and a shift in the curve.

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SLOPE, INVESTMENT LINE

The positive slope of the investment line is also termed the marginal propensity to invest (MPI). This slope is greater than zero but less than one, reflecting induced investment. The slope of the investment line affects the slope of the aggregate expenditures line and thus also affects the magnitude of the multiplier process.

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PURPLE SMARPHIN
[What's This?]

Today, you are likely to spend a great deal of time touring the new suburban shopping complex wanting to buy either a set of hubcaps or handcrafted decorations to hang on your walls. Be on the lookout for vindictive digital clocks with revenge on their minds.
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This isn't me! What am I?

In 1914, Ford paid workers who were age 22 or older $5 per day -- double the average wage offered by other car factories.
"The only thing that will stop you from fulfilling your dreams is you. "

-- Tom Bradley, former Los Angeles mayor

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