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Suppose a country enacts a tax policy that discourages investment. As a result, the value of the parameter ¯s now goes to a smaller value ¯s ′ .
a) Assuming that the economy starts at its initial steady state, use the Solow model to explain what happens to the economy (after the change of ¯s) over time and in the long run.
Explain how do you expect the supply and demand of your selected good to change in the next year. Relate you expectations to the price and quantity of the good in the marketplace.
Draw a supply and demand diagram to show what happens to price, quantity, consumer surplus (CS), and producer surplus (PS) in the market for computers.
Illustrate what is M1 in Iron mania. Illustrate what is M2 in iron mania.
Why was the Federal Reserve System set up with twelve regional Federal Reserve Banks rather than one central bank, as in other countries? What is the primary tool that Congress uses to exercise some control over the Fed?
sales in joint facilities are lower than sales in two separate facilities. Elucidate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
A decrease in government spending initially and primarily shifts which curve in what direction?
Use the characteristics/features of the different market structure to determine which market structure to classify your chosen firm.
Illustrate what are the pros and cons of using expansionary and contractionary fiscal policy tools under the following scenarios: depression, recession, and robust economic growth.
What is consumer surplus and producer surplus? Create a diagram to explain your answer. On the same diagram, show what happens if a limit is imposed on the amount of a good that can be sold in the marketplace
Suppose we collect the following information from a large number of junior and senior level college students: Give specific interpretations for the coefficients in the model, and discuss whether or not they make sense. Based on this equation, what co..
You and your roommate are in a tough position. Both of you value a clean apartment at 100, and a dirty apartment at 30. The total cost of cleaning the apartment is 80. This means that, if you both clean the apartment, you both get a payoff of 60. Lay..
Rex Hofer has determined that demand for his product is given by Q = 180 - 5P and a cost equation given by C = 75 + .3Q. Determine the optimal price and quantity for the firm. Suppose that costs change to C = 25 + .4Q. Determine the new optimal price..
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