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Suppose households consume 80% of their disposable income. The government is considering three actions to help increase GDP: increasing government spending, cutting taxes, or increasing fixed transfer payments.
If the government increases transfer payments by $100 billion, by how much will real GDP increase? (Express your answer in billions of dollars.)
Hint: First, calculate the transfer multiplier. Remember: transfers = negative taxes.
The state Medicaid agency has set a rate of $5.50 per visit for all Medicaid enrollees who visit a physician. Each physician also has private paying patients. The demand curve for each physician can be characterized as follows, and physicians can ..
A student wants to buy a car. The car's sticker price is $24,000. The student cannot afford the dealer's terms - 12% interest for 60 months, because the student only has a $500 monthly disposable income. What is the highest rate the studen..
Hurricane delayed the cash inflows that the managers of firm Metro expected from a project that being built and increased the cash outflows over the next two years. the NPV of this project is now negative.
Your cat's summer kitty-cottage needs a new roof. You are considering the following two proposals and feel a 15-year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.) Construct a choice table..
A sales agent is provided a $50 commission in addition to her salary for each new energy-efficient convection oven she sells during a one-month introductory period. Based upon the response to the convection oven when introduced in other geographic..
You currently pay $10,000 per year in a rent to a landlord for a $100,000 house, which you are considering purchasing. you can wualify for a loan of $80,000 at 9% if you put $20,000 down on the house. To raise money for your own downpayment, you w..
In solving the problem,when your taxable income lies exactly on the border of the 22% bracket ( so that adding one dollar takes it to the beginning of the net bracket), choose the next bracket i.e. 26% as the marginal rate for your federal tax, t..
.What are the equlibrium quantities (q1, q2 %u2026 ,q10)?. A-q1, q2 %u2026 ,q10 = 2B-q1, q2, %u2026 ,q9= 2 q10=1/2c-q1, q2, %u2026 ,q9= 3/2 q10=1/2d-q1, q2, %u2026 ,q9, q10= 3/2e- q1, q2, %u2026 ,q9= 3/4 q10=1/2f-q1, q2, %u2026 ,q9= 3 q10=1/2g-non..
The market for widgets is perfectly competitive with a market demand curve of: Q =200-(.5)P There is a single production technology available to firms that choose to operate in the market. The long run total cost function associated with this tech..
Utility function: U(x,y) = x^1/2 + y A) graph a typical indifference curve, choose a level of utility and draw various combinations B) write marginal utility of x and y C) give marginal rate of substitution
Vander's sells bicycle in a small shop on main thoroughtfare, and the manager has computed some numbers based on past sales of bikes. she estimates the demand curve to be P=80-2Q. costs are given by C=200+20Q.what numbers would you use to back up y..
A firm is a monopoly with demand p+120-y and cost TC=y^2-4y+1000. suppose the government imposes a price ceiling of $90. what is the monoploist's profit maximizing quantity when the price ceiling is in place what if the price ceiling is $80
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