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Suppose Congress votes to decrease corporate income tax rates. Use the AD/AS model to analyze the likely impact of the tax cuts on the macroeconomy. Show graphically and explain your reasoning. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?
Will countries be better off under a multilateral economic liberalization regime or under a system of regional economic integration? Why? How useful is economic geography in explaining the success of regional economic integration blocs? Give examples..
In recent weeks markets around the world have been rattled by signs of a slowdown in growth of the Chinese economy, together with a massive sell–off in its stock market… plus a massive default by Greece on its debts to the IMF , the ECB and on its go..
China is the world's most populous nation with 1.25 billion people. Firms look at that population as a large customer base and are rushing to establish themselves in China. Is this appropriate for all firms? Why or why not?
The study that estimates that in the United States the multiplier value is equal to 1.62, is carried out by----
What happens to the aggregate quantity demanded in nominal terms over this interval? Using the formula for price elasticity of demand what is the elasticity of aggregate demand over this interval?
Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5 percent on inve..
Suppose there is an options market in S02 permits, where each permit entitles one ton of S02 emissions. Suppose that running a scrubber costs $65 per year per ton of S02 removed, has a capital cost of $30,000,000, and an expected life of five year..
With a Swedish Kroner, the likelihood of getting Heads when it is spun on edge is 0.2. If X is the random variable where X(H)=1, X(T) = -1, find the expected value E(X), the variance Var(X), and express X in its standard form. Consider two fair dice,..
Mitchell's money income is $150. The price of X is $2 and the price Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y, bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if M..
An investment currently costs $30,000 if the current inflation rate is 3% and the effective annual return on investment is 8%. Approximately how long will it take the future value to reach $45,000?
Recall the Application about adapting growth accounting to new developments in the economy to answer the following? question(s). According to this? Application, economists Carol Corrado and Charles Hulten found that
Elucidate what would the seller's cost of capital have to be in order for the discount to be cost justified.
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